{"id":585,"date":"2024-04-18T06:19:42","date_gmt":"2024-04-18T06:19:42","guid":{"rendered":"https:\/\/jamawealth.com\/askguru\/?p=585"},"modified":"2026-03-02T19:32:14","modified_gmt":"2026-03-02T19:32:14","slug":"i-have-40-lacs-should-i-buy-a-home-with-it-or-make-a-40-lacs-fixed-deposit-and-take-home-loan-to-repay-its-emi-from-the-monthly-interest-of-40-lacs-fd","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/18\/i-have-40-lacs-should-i-buy-a-home-with-it-or-make-a-40-lacs-fixed-deposit-and-take-home-loan-to-repay-its-emi-from-the-monthly-interest-of-40-lacs-fd\/","title":{"rendered":"I have 40 lacs. Should I buy a home with it, or make a 40 lacs fixed deposit and take home loan to repay it’s EMI from the monthly interest of 40 lacs FD?"},"content":{"rendered":"\n

The game of chess has its deep strategies and complex moves. Your 40 lacs is like a queen – powerful and pivotal. You’re deciding whether to advance it directly, buying a fortress (a home) or to employ a clever tactic: placing it in a fixed deposit<\/a> (FD) and drawing from its returns to play out a longer game with a home loan.<\/p>\n\n\n\n

  1. Direct Home Purchase<\/strong>: Deploying the entire 40 lacs to buy a home means zero debt. This path ensures immediate ownership, peace of mind, and the joy of living in a space you truly own. But, like a queen charging forward without any cover, it can leave you with reduced liquidity for other goals or emergencies.<\/li>
  2. FD & Home Loan Combo<\/strong>: Keeping 40 lacs in an FD at an average interest rate of, let’s say, 6%, can fetch you around Rs. 20,000 monthly. Simultaneously, if you take a home loan, its EMI might be somewhat similar or more. Here’s where the real magic is: The interest paid on a home loan is tax-deductible under Indian tax laws, leading to potential tax savings. And, having a significant amount in FD ensures liquidity. This strategy, much like a well-planned chess game, may lead to multiple benefits.<\/li><\/ol>\n\n\n\n

    As the great Rakesh Jhunjhunwala, the Indian stock market veteran, once said, “Risk comes from not knowing what you’re doing.”<\/em> It’s key to understand both strategies and their implications.<\/p>\n\n\n\n

    Yet, there’s more than just mathematics here. Owning a home outright brings an intangible emotional satisfaction. But the FD-loan route provides financial flexibility and potential tax advantages.<\/p>\n\n\n\n

    To sum up, choices in financial strategies, like in chess, should align with your overall game plan. Maxiom Wealth\u2019s LSG framework (Liquidity-Safety-Growth) can help determine the right move for your unique situation. And as the game unfolds, having a SEBI Registered Investment Advisor by your side can make all the difference. Consider Maxoim Wealth’s portfolio management services and associate investment advisory services for guidance.<\/p>\n\n\n\n\n

    \n

    Maxiom Wealth \u2014 Free Tool<\/p>\n

    Are FD Returns Beating Inflation After Tax?<\/h3>\n

    A 7% FD rate drops to ~4.9% after 30% tax for high earners \u2014 barely above inflation. See how FD compares to goal-based investments over your horizon.<\/p>\n FD Returns Calculator \u2192<\/a>\n Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

    The game of chess has its deep strategies and complex moves. Your 40 lacs is like a queen – powerful and pivotal. You’re deciding whether to advance it directly, buying a fortress (a home) or to employ a clever tactic: placing it in a fixed deposit (FD) and drawing from its returns to play out… Read More »I have 40 lacs. Should I buy a home with it, or make a 40 lacs fixed deposit and take home loan to repay it’s EMI from the monthly interest of 40 lacs FD?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[198,26],"tags":[],"class_list":["post-585","post","type-post","status-publish","format-standard","hentry","category-invest-vs-loan","category-investments"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=585"}],"version-history":[{"count":2,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/585\/revisions"}],"predecessor-version":[{"id":3921,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/585\/revisions\/3921"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}