Buying a home in a place like India can come with its fair share of expenses, such as stamp duty charges, registration charges, home loan interest rates, renovation expenses, etc. Coupled with a rise in real estate prices, this can increase the overall cost of the house you wish to own by a large percentage. Thankfully, the Government of India has come up with some housing schemes that can help you procure an affordable home for yourself and your family. These schemes are particularly attractive for low-risk investors as they offer safety and lower costs.
Here are some reasons why you should invest in a government housing scheme:
It is entirely safe and quick
Given the fact that these housing schemes are offered and run by the government, you can rest assured that the purchase process is absolutely safe. This can be a comforting factor for low-risk investors, as your invested capital remains secure, and you are able to buy your house without any unnecessary legal hassles.
It offers better deals on home loans
If you are thinking of applying for a home loan, government housing schemes can provide you with better home loan interest rates. For example, the Pradhan Mantri Awas Yojana offers a subsidy of up to 6.5% for a tenure of 15 years on home loans for urban areas. You can get a subsidy of 4% for a home loan of up to Rs 9 lakhs and 3% for up to Rs 12 lakhs, depending on your home loan eligibility.
The precise value of the subsidy can depend on your income and the size and value of the property, but this can be a great way to save some money while buying a house.
It is affordable
Buying a house can imply years of planning your savings. Moreover, with inflation, the prices of properties are constantly on the rise, making it hard to purchase a house. However, government housing schemes offer homes at affordable prices based on your income. For instance, the TN Housing Board Scheme constructs, maintains and allots houses via auctions. The housing scheme also offers special reservations for government employees and defense personnel. You can apply to the scheme and participate in the draw of lots. If you get selected, you can check your home loan eligibility, apply for the loan, and own the house at an affordable price.
Some housing schemes you can invest in:
- Delhi Development Authority Housing Scheme
- Pradhan Mantri Awas Yojana
- NTR Urban Housing Scheme
- Rajiv Awas Yojna
To sum it up
Government housing board schemes can be the perfect option if you are a low-risk investor as they can provide affordable housing options without a long, drawn-out process. They also offer cost-effective home loans, but make sure to use a home loan EMI calculator to ascertain the precise value and then accordingly apply to a suitable government scheme.