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(Precious) Words of Wisdom : "The art is not in making money, but in keeping it." ~ Proverb

Save Huge Taxes. Make Huge Money. At (Possibly) Zero Risk.

You are paying huge taxes on your income. Sec 80C benefit is limited to only Rs.1.50 lakhs. Other benefits also do not amount to much. End result... huge payments to Mr. Tax.

Solution?

Buy a 2nd house...with a huge loan.

Outcome? You pay huge interest. This becomes your key to saving tax.


Rent (actual/notional after deducting municipal taxes and 30% standard deduction) from 2nd property will increase your income. But this net rental income will be much lower than the interest that you pay on the 2nd home loan. 

Result: Loss from house property. 

[IMPORTANT: Unlike 1st house where interest deduction is max Rs.1.5 lakhs, there is NO LIMIT on interest deduction from 2nd house onward. While there is no benefit of principal repayment, it anyway is not required as there are many other options u/s 80C] 

This loss can be adjusted against your salary. Hence, lower taxable salary and hence lower tax outgo. Thus you Save Huge Taxes.

Now the money, instead of going to Mr. Tax, goes to building a useful and long-term appreciating asset.  Loan at around 10%. Appreciation normally around 15%. Thus you Make Huge Money.

And Risk? If property prices crash.
Will they crash? You decide.

Worst case scenario...you can't pay the EMIs.
Simple. Sell the property. Pay Off the Loan. No problems.

By the way... buy a ready property. No builder risk and tax benefits + wealth creation start from day one.


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101 Classic Tips Money Gyaan

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... Three VALUABLE Tips ...

1. Why Did The Beggar Refuse A Rs.2000 Note?
Mutual Funds or Beggar?
Do you keep your eyes closed to new investment styles and remain a beggar?

 


2. Refinance Home Loan In Early Years (For Maximum Gains)
Loan Refinancing
Think before you make your move to refinance your loan.

 


3. Prediction is Impossible. Here's The Best Way To Invest In Equity.
Equity Investing Rules
Therefore, the best way to make money in the future is Protection.