rent vs buy emi vs rent home loan vs sip in telugu
rent or buy calculator
full payment or loan
home loans at low rate (just below 2% equals to inflation). tax benefits.
SIP vs Home loan
buying for rental income
1-2% monthly rent or 10% yearly 10 years property free.
1 cr 50K 6 lakhs 7% better yield.depends on area.(appreciation,inflation)
1% 1.2% (70 lakhs 7-15% 10% 7oK)
appreciation is speculation 10-20% appreciation, property depreciation,
property tax, maintenance 1% home loan 3%.
20 years buying cost 83.lacks renting 40 lakhs
home loan vs sip
interest rate 10% 10% to 15%
14 lakhs as lump sum for 20 years.
46 lakhs as sip for 20 years
Mutual fund SWP vs home rent
Thumb Rule: unsecured job, no financial discipline or sudden money then go invest in house.
How do people make money by renting?
- foreclosed, house under market value with cash.
- Cash Flow (positive cashflow rent vs buy)
- Amortization (EMI goes down rent increases)
- Appreciation of property
- Tax Benefits
Buying Home/Property for Rental Purposes
buying home or rent
Loan Amount 40 lac
The deductible amount in 80C
Tax slab (10, 20,-30%)
Rental Property vs. Mutual Funds (EMI VS SIP)
good rental yield for rental property is generally 8% or more. Anything below that, might not be sufficient to cover running costs and mortgage payments.
Mutual funds have historically returned 7- 9 %.
80% (40 lakhs) on the loan (EMI or Rent)
20% (10 lakhs) as a downpayment or (lumpsum investment in MF /ELSS or index funds)
50 lakhs home, 6K rent
20 Years Term
Principal: Rs. 40,00,000 (46.1%)
Interest Payable: Rs. 46,68,263 (53.9%)
Total Amount Payable: Rs. 86,68,263.8
Interest rate: 9.05pa (only for govt)
EMI: 36117.17 after 20 years 86,68,263.8
Rent: 6,000 (5% increase in evey years) after 20 years = 24,44,746.70
10 Lakhs at lumsump after 20 years at 10 CAGR* = 67,27,499.95
4-6% registration charges
EMI – Rent = 8668263.8-2444746.70 = 62,23,517.1
Total savings for rent (6223517.1+6727499.95= 1,29,51,017.1
Property appreciation at 5% (10%- 5%inflation rate) CAGR for 50 lakhs for 20, years = 1,3266,488.53
- Maintanence + property taxes = 1% of
- Proprtery taxes (15-30% of the annual rental value)
- Maintanence (0.25 to 0.25) of property value.
- loan EMI interest 10%
Property depreciation + Land appreciation
Value Investing In Real estate
understanding the difference between price and intrinsic value
PEGR>> Expected Growth rate based on fast & Future years.
Expecting people where the go // because of companies or jobs, facilities roads, train expansion, focus on developing area areas