Comments on: Pre-EMI waiver offers. Is it really worth? http://www.chennaimetroblogs.com/pre-emi-waiver-offers-is-it-really-worth/ My Miscellaneous Ramblings Mon, 30 Jan 2012 15:14:46 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Sanjeev Kapur http://www.chennaimetroblogs.com/pre-emi-waiver-offers-is-it-really-worth/comment-page-1/#comment-68375 Sanjeev Kapur Sun, 14 Aug 2011 13:22:37 +0000 http://www.chennaimetroblogs.com/pre-emi-waiver-offers-is-it-really-worth/#comment-68375 The advantages of a NO Pre Emi scheme is that you do not pay anything else, other than initial 15/20% till possession. i.e. effectively by investing just 15 or 20% of property Value you get a chance to get appreciation on full 100% value of property. Which means that if you hv inested say 15% initially and you get your property possession in 3 yrs, assuming you are able to sell it at possession at 15% more than the Purchase price, then you get to double your investment in 3 yrs. i.e. ROI(Return on Investment) of 33% p.a. is achieved. In a regular construction linked payment plan you are required to pay the builder the entire amount ion 3 yrs, either from your resources or from home loan which obviously carries an interest, thus increasing the cost. Under No Pre Emi scheme, the interest is borne by the developer , who pays directly to Hpme Loan company/ bank. The advantages of a NO Pre Emi scheme is that you do not pay anything else, other than initial 15/20% till possession. i.e. effectively by investing just 15 or 20% of property Value you get a chance to get appreciation on full 100% value of property. Which means that if you hv inested say 15% initially and you get your property possession in 3 yrs, assuming you are able to sell it at possession at 15% more than the Purchase price, then you get to double your investment in 3 yrs. i.e. ROI(Return on Investment) of 33% p.a. is achieved.
In a regular construction linked payment plan you are required to pay the builder the entire amount ion 3 yrs, either from your resources or from home loan which obviously carries an interest, thus increasing the cost.

Under No Pre Emi scheme, the interest is borne by the developer , who pays directly to Hpme Loan company/ bank.

]]> By: Sanjay http://www.chennaimetroblogs.com/pre-emi-waiver-offers-is-it-really-worth/comment-page-1/#comment-23709 Sanjay Mon, 22 Mar 2010 17:03:00 +0000 http://www.chennaimetroblogs.com/pre-emi-waiver-offers-is-it-really-worth/#comment-23709 The write lakes complete finance and tax knowledge.All speculations . He forgot important portion that pre emi comes into picture only if the building is under construction and bank has done payment to builder in installment. If you pay full emi during that period a large portion of that will go into principal payment which will not be allowed for tax deduction till the house is complete. The write lakes complete finance and tax knowledge.All speculations . He forgot important portion that pre emi comes into picture only if the building is under construction and bank has done payment to builder in installment. If you pay full emi during that period a large portion of that will go into principal payment which will not be allowed for tax deduction till the house is complete.

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