There’s no tax benefit on a pure property loan
However, there is no tax benefit available on a pure property loan. But some benefits may be available in future, depending on when you complete the construction of the property, besides it will also depend on whether property is for self residence or renting out.
I want to buy a plot for Rs8 lakh. What percent of the property value will I get as loan? In that case, will there be any tax benefit if I do not start construction immediately?
Normally, lenders do not finance more than 60 to 65% of the total cost of the plot; hence the balance 35 to 40% has to come from your own sources.
Banks are normally much more preventive for plot loans and it is accessible only to non-agricultural plots bought from statutory authorities or approved developers. Also, these are more expensive and available for shorter tenure.
I am planning to renovate the flat that is in my father’s name. Can I apply for a home loan along with him as co-borrower and get tax benefit for it?
You can get a overhaul loan based on your income, but your father will have to join you as a borrower as he is the owner of the property. You will not be able to get tax benefit on the loan, as you are not a co-owner to the said property.
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