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Raise Money For Home Down Payment
1075 
Here is a guide on how to tap your various investments when you raise money for home down payment.
Edited Highlights0:32 Which investments to use for your down payment?0:58 Which investments should you tap first, which later and which investments you shouldn’t even touch? These are all important issues2:23 First tap investments whose returns after tax is less than the tax-adjusted rate for your home loan2:38 Check out for any cost liquidation such as surrender charges and exit loads which are typically there in long term investments3:24 Check whether you will lose substantial amount of money due to liquidation costs.3:29 You could also be losing out on the growth3:57 Find out if your investments have a potential for delivering high returns4:18 Don’t liquidate high growth investments which can provide growth of your money in the future4:51 Don’t use PF money for home down payment 5:14 People typically make the mistake of not replenishing PF withdrawals. This impacts their retirement savings5:40 Avoid partial withdrawals of Public Provident Fund (PPF). Remember, sometimes it is difficult to get the growth back5:52 Ideally, you should have made separate provisions for your home down payment6:21 Don’t use life insurance policy since a premature surrender will mean paying a penal charge6:27 You will also need to plug the gap in life insurance coverage buying a life insurance plan like a term plan6:43 Income tax deduction availed before might need to be paid as income tax7:02 First up, consider interest bearing and debt fund type of investments7:14 Spare higher growth investments with a future potential and liquidate underperforming investments and or those which have run their course7:40 You can use loan against FD as a bridge fund. Other loans against assets are likely to be much costlier than the home loan rate.8:22 Ask yourself whether you really need to go for a home that’s unaffordable8:31 Consider a more affordable home at a lower budget or postpone your purchase8:38 You could consider postponing your budget
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