Another viewpoint on repaying the property loan
There is always doubt over whether we should repay the house loan quicker or just do the bare minimum and spend the rest in other areas. This question keeps coming up for me as well. The final conclusion I normally reach is to pay off the house loan as quickly as possible, and I keep pushing for additional funds whenever available.
One thing is certain: if we need cash flow, a house loan is the greatest option because no one else offers a loan at 8% interest. If we need a personal loan, the interest rate is more than 12%. So, even if we have to invest our money in anything, the return is 7 percent, so the difference is just 1 percent, which is negligible. So, given all of these circumstances, it may appear that we must postpone paying additional money to our house loan in order to complete it, but my reasoning will be rather contradictory.
I believe that paying off the debt sooner is beneficial. The first major factor is because we don't know how long we can continue working. There is such a strong reliance that we must continue working only to afford the EMI expense. So, getting out of debt is beneficial for those who want to retire early and debt-free. The third point I see is that if we complete one loan, we can always apply for another home loan or make another investment. I've witnessed numerous folks move from one house to another.
Another reason why paying off the loan is beneficial and debt-free is that we cannot predict how long we will be healthy. There may be an unanticipated emergency in the family for which we would need to spend the money. If anything like this happens, we must ensure that we have sufficient finances, and taking out a large loan at that time is not advisable. We could struggle to handle all of our spending collectively.