Buying a house with your own money looks like a better option.
- Interest rate of home loan will always be higher than your FD interest.
- Interest Received on FD is taxable as per your income tax bracket
- Interest paid on home loan is only exempt upto 2 Lac
Now, what can be done which is even better.
- Keep Rs. 5–10 lac for liquidity need and take a loan of only that amount.
- Instead of putting this money in FD, Invest it in mutual funds. As this is going to be a long term investment balanced fund can be a good option from risk returns perspective.
- Real estate might not the best investment. Just rethink if are not dead set against it.
Mutual Fund Investment Options: