I know this heading is controversial because how come the home loan EMI will be great, he has to pay the interest on the principle he has borrowed. Now the thing is not everyone is a great saver. For example, one of my friend is been working from the last 10 years but he has not saved anything. Recently he got married and thus by the pressure of his wife, he has booked a under construction apartment.
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Now he has to pay the EMI every month. That EMI includes the principal and interest. So now every month he has to allocate some money for the EMI and he has to reduce the unnecessary expenses which he was doing. So because of the EMI he can save little bit, not directly though. So eventually after 15 to 20 years he will house which will be an asset. So even though he could not save for investment, he has to save for the EMI and after the EMI he can save that money for investment. So we can say that home loan EMI is great for people who cannot save directly as well as for people to come in line for investment.
Even though because of the home loan EMI he has to pay more interest amount, but along with that he will have the asset as well as he will have the discipline. And that's true for everyone who cannot save. Home loan is yhe best way for people to create assets because you have to pay no matter what and you can escape that. And home loan is the best loan out there because of the lower interest rate.
People often say that we should not take home loan, we should invest and what not. But a lot of people cannot invest because of whetever reason but for them if they are taking the house then they are happy to take home loan.
