Is buying homes on loan assets?
Is buying home on liability?
Is buying homes on loan liability?
Before going to discuss, let’s understand what is liability and what is property?
LIABILITY – is the thing which take away your money from your pocket?
E.g – if you buy a car it require maintainance cost, petrol cost mean it it take away money from your pocket.
ASSETS – is the such thing which add money in your pocket.
E.g if you invest money in FD, RD, STOCKS or any other thing that give you money in form of interest, dividend.
Now, buying home on loan is liability
How it is liability?
Suppose you buy home @ 2500000/- on loan with 20 year term.
Your EMI will around RS 23000/- per month which have to pay for 20 year.
Mean you are paying indirectly rent to bank. Your are paying nearly Rs. 5500000/- to bank.
It taking money away from your pocket.