Can you tell me when calculating rental yield should we consider a home loan interest amount? For example let's say I am buying a home which costs me 1 cr and 7 Lack is stamp and duty charges. And I have taken 70 Lakh of loan and then let's say the total interest paid to bank is 60Lakh so while calculating rental yield do I need to sum all the 3 things Total house cost (1cr) Home loan interest amount (60 lakh) Stamp duty 7 lakh And lets assume monthly rent is 30,000 360000 / (10000000 + 6000000 + 700000) Is this the correct way of calculating rental yield or do I need to add or remove any other parameters?
One factor which has not been considered is the presence of potential tenants (especially service class) in the city. For example, in Vadodara (Gujarat) it is very difficult to get good rental yield, owing mainly to lack of tenants. Average annual rental yield in Gujarat is about 2%. On the other hand, rental yield in cities like Bangalore or Gurgaon where there is large number of service class (potential tenants), annual rental yield could be as high as 5%.
@Chandan Jaiswal ji Kindly comment that the same income generating property is more valuable in Gujrat to that of Gurgaon inspite of generating more rental returns/yeild?
Could you please clarify : 1. When we say rental yield, is it the gross rent or net rent which remains after paying maintenance charges? 2. When we say value of property, is it all inclusive price or the basic cost that is paid to seller or builder? Thank you for the vidoe and clarification in advance.
Mukul ji excellent video one question For resale of flat the property valuation is the highest price you should pay not a penny extra ? or the other factors also to be considered such as locations, Parking, Furnishings floor, locality etc and if the property is slightly above the valuation. Should i considered for buying flat above calculated valuation price?
Really appreciate your work Asset Yogi Ji. Im a civil engineer and want to become a techincal manager at bank , what would i need to know about Valuation ? How do banks do Valuation before providing loan ?
Its really appreciable Mukul ! As I am living in Canada, Can you please make video on NRE/NRO, FCNR bank account which is best for NRI who wants to invest in Mutual funds, Shares, and Tax index, Double Taxation avoidable Treaty with the countries, Repatriable and non repatriable, FEMA, FATCA , and list of all fund houses who accepts funds from NRI
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commercial rent yield= 8%, residential = 4% aapke tarike se to jis pe return on investment jyada hai vo kharidan sasta padega ( value = rent/yield). How is it possible? jo cheej mujhe jyada kama ke de sakti hai uski utni jyada value honi chahiye( value should be in proportion to yield). Plz clarify. I am so confused.
Sir , IsThis valuation system is applicable on old building & New building where rent of both property are same?. Depression on old property should also applicable or not
Thankyou very much. Just a question - Is there a website where we can check a particular city Rental Yield Percentage (ex- Shimla, Chd )? Also, post calculating the fair price , there will lot of deductions for expenses in the rental. Don’t you think, more than the Rental Yied value , it will be appropriate to calculate the Actual Net Value ( Rental - Expenses) and then get the actual fair value of the property to generate a positive Cashflow. Kindly add your comments or make a video on this. Thankyou once again
its ok for flats, but waht about bunglows, which have huge gardens, the evaluation of my bungalow is not even 30% of what i expect, please tell us for evaluation of bungalows also
Maine ek property dekhi ,2700000 Price and 10k rent from bulding 360 sqft semi comercial property hai What is rental yield ? Should I buy it? Please help sir
is maintenance cost is also added in annual rent?? for example my rent is 24000 per month with 6000 maintenance per month. so what will be my annual rent? is it 288000(24000*12) or 360000(30000*12) rupees?
Hi Sonu. Plot value ke liye aap aas paas ke plots koi sale hue hon to comparison kar sakte hain, wahan Rent wala method applicable nahin hota hai. Aap mera ye video dekhiye - ruclips.net/video/S5ipCt6VOvA/видео.html. Main land valuation pe bhi jaldi hi ek video banaoonga.
If rent yield is less value of property comes out more by this formula. How is possible. As per your formula Suppose rent is 3 percent then multiply by 33 with A. R. .and if rent is 4 percent then you are multiplying Annual rent by 25. How is it possible.
Hello SIr mai jo proparty buy karne vala huvo 68 lac+ tax 72.3 lac tak ja raha hai aur vaha rent 17,000 to 18,000 month ata hai. Sir jo Property cost appne pakdi hai hai vo including stamp duty and registration pakdi hai?
Eg.your plot is of 10lakh and yeild is 4% then divde 10lakh by 4 then you will get annual income,if you divide annual Income by 12 you will get monthly income.
No, it is not a standard percentage. It may vary amongst cities as well. So, you can estimate an average for a city as well. To arrive at a better approximation, you can use a combination of fair market value and rental yield method.
SORRY SIR BUT AS PER MY OBSERVATION IN MY CITY NASHIK NOT GETTING 3% OF RENTAL YEILD SO DIFFICULT TO CALCULATE PROPERTY WITH THIS METHOD AS PER THIS METHOS PROPERTY VALUATION IS ALMOST HALF OR LESS THAN HALF...?????
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Very good clases sir jee, hum dilse dhanyabad dete hai.
God will bless you for spreading truth !
Good work 👍
Thanks, you too!
Very Well Captured.. your videos are very easy for a laymen and easy to understand. Thanx for sharing.
Can you tell me when calculating rental yield should we consider a home loan interest amount?
For example let's say I am buying a home which costs me 1 cr and 7 Lack is stamp and duty charges. And I have taken 70 Lakh of loan and then let's say the total interest paid to bank is 60Lakh so while calculating rental yield do I need to sum all the 3 things
Total house cost (1cr)
Home loan interest amount (60 lakh)
Stamp duty 7 lakh
And lets assume monthly rent is 30,000
360000 / (10000000 + 6000000 + 700000)
Is this the correct way of calculating rental yield or do I need to add or remove any other parameters?
Thanks Mr Asset Yogi
One factor which has not been considered is the presence of potential tenants (especially service class) in the city. For example, in Vadodara (Gujarat) it is very difficult to get good rental yield, owing mainly to lack of tenants. Average annual rental yield in Gujarat is about 2%. On the other hand, rental yield in cities like Bangalore or Gurgaon where there is large number of service class (potential tenants), annual rental yield could be as high as 5%.
@Chandan Jaiswal ji
Kindly comment that the same income generating property is more valuable in Gujrat to that of Gurgaon inspite of generating more rental returns/yeild?
Thanx for very important info mukul Sir
Keep learning Rajesh :)
Could you please clarify :
1. When we say rental yield, is it the gross rent or net rent which remains after paying maintenance charges?
2. When we say value of property, is it all inclusive price or the basic cost that is paid to seller or builder?
Thank you for the vidoe and clarification in advance.
Mukul ji excellent video one question
For resale of flat the property valuation is the highest price you should pay not a penny extra ?
or the other factors also to be considered such as locations, Parking, Furnishings floor, locality etc and if the property is slightly above the valuation.
Should i considered for buying flat above calculated valuation price?
Really appreciate your work Asset Yogi Ji. Im a civil engineer and want to become a techincal manager at bank , what would i need to know about Valuation ? How do banks do Valuation before providing loan ?
U R very intectual person
Excellent sir,...Please make video on 13 year legal chain Or 30 year legal chain
Kindly suggest any book to learn all about these Equations related to real estate
Very easy explanation sir...😍🙏🙏
Jst a ques...is this method also applicable for old properties(e.g - 10 year old flat)?
This concept can be used for few & rare properties
sir residential rental yields 3-4 % se agar jaada ho to acha hai yaa usase kam Hona acha hai ....?
Thanks sir aapne bahot achi jankari di
Sir, when you say "Property Value", do you refer to your Acquisition Cost or Current Property Market Value? Thanks in advance for your clarification.
Hi
Amit Degama
From gujarat
Kiya aap rent control act par
details me ek video banao ge.
Great calculation! However, I would like to add that this doesn't consider this npv of money.
Its really appreciable Mukul ! As I am living in Canada, Can you please make video on NRE/NRO, FCNR bank account which is best for NRI who wants to invest in Mutual funds, Shares, and Tax index, Double Taxation avoidable Treaty with the countries, Repatriable and non repatriable, FEMA, FATCA , and list of all fund houses who accepts funds from NRI
Investment growth method per be ak video bana dain detailed
Noted
Is this method only to estimate for buy or sale? Can it be used while filing ITR?
Please suggest for current market scenario in India for real estate in this pendamic
Currently, I'm living in a rental flat in an apartment of Sohna Road, Gurgaon!!
good method of explaining a complicated topic
Thanks Tariq! Hope you have subscribed to the channel. Many more informative videos like this coming up. Please press Bell icon in your mobile after subscribing, so that you get the notification.
Lekin sir Area or furnished aur semi furnished bhi matter karta hai na
Very well explained. Thank you 👍🏻... Subscribed
Keep learning :)
Sir, If we want to know either we buy that property or rent it which method is best?
Awsome... thanks
Sir is main stam duty and registration flat cost ke sath include h ya stam duty and registration alag se pay karna padega. Jo aapne example diya h.
commercial rent yield= 8%, residential = 4%
aapke tarike se to jis pe return on investment jyada hai vo kharidan sasta padega ( value = rent/yield). How is it possible?
jo cheej mujhe jyada kama ke de sakti hai uski utni jyada value honi chahiye( value should be in proportion to yield).
Plz clarify. I am so confused.
Sir can you please tell what is the age of average construction appartment in delhi ncr
Sir , IsThis valuation system is applicable on old building & New building where rent of both property are same?. Depression on old property should also applicable or not
Then rent also changes it depends on locality adds premium for property not much affect age of property
Good one. Nicely explained.
Thank you 🙂
Thankyou very much. Just a question - Is there a website where we can check a particular city Rental Yield Percentage (ex- Shimla, Chd )?
Also, post calculating the fair price , there will lot of deductions for expenses in the rental.
Don’t you think, more than the Rental Yied value , it will be appropriate to calculate the Actual Net Value ( Rental - Expenses) and then get the actual fair value of the property to generate a positive Cashflow. Kindly add your comments or make a video on this. Thankyou once again
No it will be decided by property valuer according to exposure and locality
Nice concept for Valuation of a property
Sir, How to calculate empty plot or land?
how to do this for agriculture land ?
grt sir..thnq fr providing this knowledge
Happy to hear that you liked it!
its ok for flats, but waht about bunglows, which have huge gardens, the evaluation of my bungalow is not even 30% of what i expect, please tell us for evaluation of bungalows also
No mention of maintenance and municipal taxes in valuation estimates.
Maine ek property dekhi ,2700000
Price and 10k rent from bulding
360 sqft semi comercial property hai
What is rental yield ?
Should I buy it?
Please help sir
Mat karo purchase
sir about investment , which investment wil give us maximum rate of interest and security too..like mutual funds, fd...
is maintenance cost is also added in annual rent??
for example my rent is 24000 per month with 6000 maintenance per month. so what will be my annual rent?
is it 288000(24000*12) or 360000(30000*12) rupees?
Same question but no answer yet
We valuer only use this for only commercial properties like malls, showroom, resturant etc in big properties rent is inclusive of all charges
Annual rent Kaise kis rule se clear hoga
Thanks for this information
Welcome
Value of tenented property or lease hold property
Thanks for guide Sir 👍🌹🌹🌹👌
sir i like your videos very much . they are very helpful .can you make video on valuation by belting method??
Mukul ji , I want to know, how to calculate plot value WITH this method
Hi Sonu. Plot value ke liye aap aas paas ke plots koi sale hue hon to comparison kar sakte hain, wahan Rent wala method applicable nahin hota hai. Aap mera ye video dekhiye - ruclips.net/video/S5ipCt6VOvA/видео.html. Main land valuation pe bhi jaldi hi ek video banaoonga.
Sir mere ek purnae flat ko completion certificate nahi he to usse kaise sale kare??
Why rental yield for commercial property is more than the residential building?
Sir ji commercial area mai rent zada ara pr property ki value kam or residential area mai rent kam ara hai pr property ki value zada asa ku?
if preporty is old ,then how decided the price?
Superb!
Thanks Dineshji!
If rent yield is less value of property comes out more by this formula. How is possible. As per your formula
Suppose rent is 3 percent then multiply by 33 with A. R. .and if rent is 4 percent then you are multiplying Annual rent by 25.
How is it possible.
Please share leasehold interest valuation
What wil be the cost of balance land.
Sir please make video government vs bank king valve
Hello SIr mai jo proparty buy karne vala huvo 68 lac+ tax 72.3 lac tak ja raha hai aur vaha rent 17,000 to 18,000 month ata hai. Sir jo Property cost appne pakdi hai hai vo including stamp duty and registration pakdi hai?
Thank you
Welcome.
Very well explained sir, I too find this method easy amongst all😂
Absolutely :)
Sir, khali plot (land) ko rent me dena hai to rent kaise nikale?
Eg.your plot is of 10lakh and yeild is 4% then divde 10lakh by 4 then you will get annual income,if you divide annual Income by 12 you will get monthly income.
Sir PV toh phle se pata honi chahiye rental yield k liye.. then y we finding PV
very useful information sir..
Excellent presentation thanks .
Good info Sir
Thanks
Panchkula sector 15 par assessment video banaye please
Sir plzz explain investment method of valuation
Sir, is there any authentic guideline for rental yield for different areas ? Or it's just a common standard percentage applicable for whole country?
No, it is not a standard percentage. It may vary amongst cities as well. So, you can estimate an average for a city as well. To arrive at a better approximation, you can use a combination of fair market value and rental yield method.
Hello sir I'm a civili engg. And how can I become a property valuer ? Plz send me the criteria
Liked it
Good information
Thanks
Sir pls make a video on how to become registered valuer
Sir agar land hamara hai aur usme construction karwate hain
What about old flats
SORRY SIR BUT AS PER MY OBSERVATION IN MY CITY NASHIK NOT GETTING 3% OF RENTAL YEILD SO DIFFICULT TO CALCULATE PROPERTY WITH THIS METHOD
AS PER THIS METHOS PROPERTY VALUATION IS ALMOST HALF OR LESS THAN HALF...?????
in this case formula is not wrong investing in these kind of commercial with a low roi such as 3% is wrong
Kindly make video in English language also
Price arrived at by calculation is only base price of a house or including regn plus Govt Taxes etc.?
I also want to know this, I'm assuming it is inclusive of registration, gst.
Easiest method
Rent *12*30 = property value for residential
How to calculate open plot Land value...
Thankyou
Thank you Sir....
I hope this will be useful
Super ...Duper
थैंक्स
Hope it helps
Does this valuation admissible in court ?
No. Govt. approved valuer will be required
Sir good info
Thanks 😊
Thanx😊
VALUABLE INFORMATION 👌 👌 on free asset yogi channel
*And how to calculate Rent from property value?*
Divide Annual rent by Rental Yield*
Rental yield can vary from 3%-4.5% so you need to get a good approximation of that
3.5% Annual rent of ur property Value. simple
Thank you mukul sir
Keep learning
Nice video sir
Thanks Sanjay for being a regular on the channel. Appreciate your comments.
30 lakh ka flat ka rent 18000 hae kya merko yee flat purchase karna chahiye
Sir mumbai main itana rental Yeiled nahi hai.... Mushkil se 4% hai
क्या ये नियम बँगला के लिए भी लागू होगा।
No only commercial big properties like in urban cities like malls big showroom restaurant
Sir Plot ki Economical valuation kaise nikale
मेरे यहाँ annual rent 84,000 है लेकिन प्रॉपर्टी की कीमत 50 लाख बोलते है
इस जगह क्या करना चाहिए ,,
Es jagah ki value ke hisab se bolte honge
30000*12/10000000=0.036..As you started with a figure of 3.6 whereas your value is coming as 0.036...CONFUSED :-(
1/0.0036×360000=1cr
0.036% = 3.6