Prepay Home Loan Or Invest
Prepay Home Loan Or Invest
No fixed answer however there are a few criteria you can consider to get an answer for yourself.
No fixed answer however there are a few criteria you can consider to get an answer for yourself.
#1. EMI
#1. EMI
How much % of your monthly income is the EMI.
How much % of your monthly income is the EMI.
#2. Investment Returns
#2. Investment Returns
How much returns you can generate if you invest the same amount.
How much returns you can generate if you invest the same amount.
#3. Age
#3. Age
At what stage of your life you are in. In 25 - 40 years investing makes more sense but after 40 it is better to reduce debt.
At what stage of your life you are in. In 25 - 40 years investing makes more sense but after 40 it is better to reduce debt.
#4. Tax Benefits
#4. Tax Benefits
Does the home loan helps you save on taxes otherwise reducing the loan is better.
Does the home loan helps you save on taxes otherwise reducing the loan is better.
#5. Risk Profile
#5. Risk Profile
Whether you are an Aggressive, Moderate, or Conservative investor.
Whether you are an Aggressive, Moderate, or Conservative investor.
#6. Personal Preference
#6. Personal Preference
At last it's about what you are comfortable with.
At last it's about what you are comfortable with.
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