I am 48 and I am in the 30% tax bracket. My Home loan EMI will be over by the end of next year. I had pre-paid a large part of of the outstanding loan and then I read the article on your site that it is not a better strategy to pre-pay home loans, as With that the tax breaks will also go. Kindly advice if we should opt for a second apartment, solely for the tax breaks.
- Ashutosh Katole
The second home can save you a lot of taxes. But it is not a wise move to opt for an investment just because it helps you to save taxes. The right way to plan your taxes is to invest for your financial goals with the help of investments that fetches tax breaks. You are just seven or 10 years away from your retirement. Have you saved enough? Would taking a housing loan and paying an EMI adversely impact your retirement planning? These are the questions you should ask before deciding to buy a second house. You should save as much as possible in the last few years of your active working life for your retirement, as typically one is free of all financial liabilities by that time.
This article was originally published on August 14, 2015.
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