We have a plot of 75gazam and for 1 gazam it is 50000 and we have loan of 7 lakhs on that land should i take another loan for built my house or should i sale that plot

Question

We have a plot of 75gazam and for 1 gazam it is 50000 and we have loan of 7 lakhs on that land should i take another loan for built my house or should i sale that plot

Answer 1

Option 1: Take a Loan to Build the House

1. Advantages:
2. 🏡 You will own a house, which can provide stability and eliminate rent expenses.
3. 🏠 Property value might increase significantly if the area develops further.
4. 💰 A home loan can have longer tenures and lower interest rates compared to personal loans.
5. Considerations:
6. 💳 Adding a construction loan increases your financial liability. Ensure your monthly income can handle EMIs for both loans (current loan + new loan).
7. 🔧 Construction costs depend on the size and type of house. Calculate a detailed budget and loan requirements before deciding.
8. 📉 Property value might remain stagnant or increase slowly, depending on the market.

Option 2: Sell the Plot

1. Advantages:
2. 💵 Selling the plot clears the current loan of ₹7 lakhs, leaving you with a profit of approximately ₹30.5 lakhs.
3. 🏠 You can use the proceeds to buy a ready-made house or a plot in a more desirable location.
4. 🚪 Selling avoids the burden of taking on another loan and reduces financial risk.
5. Considerations:
6. 🌟 Selling may leave you without ownership of any property, so reinvesting the money in real estate or other assets is critical.
7. 🕒 Property prices in your area might rise in the future, and selling now could mean losing potential appreciation.