If you are thinking of buying a house in this festive season, then there is good news for you. The fall in interest rates of home loan first and now proposed GST reforms can reduce the prices of homes. The government is preparing to reduce 4 GST slabs to 2 slabs, especially on building materials such as cement, steel and paint, GST can be reduced from 28% to 18%. This will reduce the cost of developers and reduce the construction cost of 1000 square feet flat to about ₹ 1.5 lakh. According to the report of Real Estate Consultant Company Anarock, GST reforms can reduce the prices of affordable flats by about 4% i.e. ₹ 2.5 lakh. Also, the fall in home loan interest rates by 1% will reduce your EMI and it is possible to defend about ₹ 8 lakh on a loan of 50 lakhs. The RBI is also expected to cut the repo rates in the future, which can increase the budget of your purchase even more. Taking a house in this festive season can bring double advantage for you – low prices and better loan options. Therefore, this can be the right time to take your dream home.

If you have also bought a house on the loan, then the interest rates of your Home Loan have also decreased after the RBI recently cut the repo rate. The direct advantage of this is that your EMI and Total Loan Payable Amount will decrease. For example, if you have taken a loan of 50 lakhs for 20 years at an interest rate of 8.3%, then your EMI is about ₹ 42,760, but if the interest rate is 7.3%, the EMI will be ₹ 39,730, which will save you ₹ 3,000 per month. Now if you invest this savings amount in SIP, then in 20 years your investment can make a corpus of about 35 lakhs. This means, out of the total loan payable of 95 lakhs, 35 lakhs will be benefited only by SIP investment. Overall, you will have to pay only 60 lakhs at a loan of 50 lakhs. In this video, we will understand this calculation in detail and tell how you can take advantage of millions from this strategy.