Should I Sell a Independent House which is on Loan and Buy a flat without Loan ?

POSTED BY srk_online ON February 6, 2015 8:19 am COMMENTS (2)

Dear Sir,   Provide your valuable expertise on the below query   I have bought an Independent House in the year of March 2012 for 57 lakhs in which 37 lakhs has been borrowed from Bank towards Home Loan.   As on Date the outstanding loan is 35 lakhs and the property cost is appreciated and can be sold at 65 lakhs.

My problem is I stay in a different city for rent paying 25000 per month, and EMI of 40000 towards the loan of independent house.   I am thinking of selling the house and pay 35 lakhs towards loan and the with the rest 32 lakhs by adding some amount I want to buy a flat here I am staying currently now.   so I may be saving the rent and emi as well. Please advice is this feasible decision or let me know how can I improve my financial stability without being a victim of homeloans and rent.

2 replies on this article “Should I Sell a Independent House which is on Loan and Buy a flat without Loan ?”

  1. sharath Mumbai says:

    You have bought the house for 57 lakhs and even if its current value is 65 lakhs, you are not in profit. Because, you have already paid approx 9 lakhs as interest part in your EMI.
    Selling the property now would attract short term capital gains tax which would be taxed as per your income slabs. If you have bought The independent house just for investment sake and then moved out of that city, and paying rent in other city, then it would be ok to sell it off and save 65k (40k + 25k) every month and use them for the new flat EMI payment.
    But, if you have bought the flat for your parents to stay or for some other purpose, then the story is different, its completely dependent on you. you might also want to make alternate arrangements for their stay in that city and take those costs into consideration.

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