Banks are able to fund 80-85% of the cost of the property.
This has encouraged a lot more customers to buy there home.
Now if you own a home and you still want to buy another home that is for investment, for that route also Home loans are taken.

With the major funding done by Bank and customers are investing only 15-20% , such activity becomes like a speculation.

Now as a customer what you should take care of while buying a home for investment with a home loan.

• You should have a clear understanding of how much property will appreciate v/s interest rate that you have to pay to the bank.
• Do also check what will be brokerage charges while buying and reselling 3.You should take expense like processing fee and registration charges of the property.

Consider interest charges, processing fee, brokerage,registration charges as expenses and then see whats the difference.
This will give you your exact amount of return rather than calculating without such expenses.

You should also give yourself a time deadline of the number of years you will remain invested in the property.
Its a risky preposition to invest via home loan route but in recent years it has been a win-win but may not work out for all or a large percentage of customers.