adiraj2016
KF Rookie
Suggestion Needed.
I am purchasing a commercial office space in an IT park for investment purpose.
The office will be rented out / sold depending on the appreciation.
The property is under construction and possession is in mid 2026.
Payment has to made in phases over these 2.5 years.
I have a loan approved for 90% of the agreement value @8.5% floating interest which I have not utilized yet and have 2 more months to start utilizing before the approval expires.
Till now I have paid approx 17% of the total amount including the registration and self funding.
Agreement Value: 49.5 L
Final Value: 57 L (approx)
Doubt:
Should I opt for self financing / use the loan money / opt for a combination.
Points to consider:
- Tax outflow - I run a business and have the scope to reduce / increase my ITR. If I decide to opt for self funding, I will have to show the income which will result in higher income tax.
- Interest paid on the loan
- Opportunity cost of utilizing my own funds elsewhere.
- Other points I might be missing
Kindly help me make a better decision.
Thank you in advance for all the opinions.
I am purchasing a commercial office space in an IT park for investment purpose.
The office will be rented out / sold depending on the appreciation.
The property is under construction and possession is in mid 2026.
Payment has to made in phases over these 2.5 years.
I have a loan approved for 90% of the agreement value @8.5% floating interest which I have not utilized yet and have 2 more months to start utilizing before the approval expires.
Till now I have paid approx 17% of the total amount including the registration and self funding.
Agreement Value: 49.5 L
Final Value: 57 L (approx)
Doubt:
Should I opt for self financing / use the loan money / opt for a combination.
Points to consider:
- Tax outflow - I run a business and have the scope to reduce / increase my ITR. If I decide to opt for self funding, I will have to show the income which will result in higher income tax.
- Interest paid on the loan
- Opportunity cost of utilizing my own funds elsewhere.
- Other points I might be missing
Kindly help me make a better decision.
Thank you in advance for all the opinions.
