Real Estate in India is very profitable if you are a goonda backed by a lawyer. For others it is best to work hard and leave the country for greener pastures where the police is professional and justice is not delayed forever.
@@BING9957 Off course, but its exception not the norm. Corrupt officers do get dismissed + jail in developed nations. In Vishaguru they are just transferred.
This is called poor illiterare democracy..caste creed religion decides vote vank.....i hope one day people of india become Good gentle professional type people@@abhishekkumar-bt6tu
I agree partially, if you buy society flat or builder floor then don't rent out , buy for self stay . However if you are buying plot and doing construction yourself , then rent out floorwise to seperate tenants on each floor because here you can exercise greater control over the property. You need a constant caretaker of property and need to ensure timely renewal of lease and need to get new tenants well before the old tenant leaves . See in that case , rental yield increases over time , after 15 to 20 years , your property will (or should) become free from EMI and the overall rental yield will increase 2.5 times or 3 times of what you were getting initially when you first started renting the premises . So real solid income starts after property is EMI free and all this while there is capital appreciation. If you actually calculate capital appreciation rate plus tax saving plus rental yield in 15 to 20 years , your overall property income and value will reach your initial overall investment in the very least .
That's a false assumption. That's why most folks fall for it. We have our own property where we stay in ground floor and 1st floor is given for rent. In initial years, rent increases annually. But after few years rent stagnates as property also gets old. Now if you want to increase rent, then you have to redo the interiors and repaint it after every couple of years. Trust me there are lot of factors that people don't consider.
@@WalterWhite-og6wjPlus I think it becomes too tedious and cumbersome for the owners after a while to maintain the flat and stop worrying about the dubious intentions of the tenants etc. I am pretty sure in the long run, in the majority of cases, property investment or rental income does not beat mf returns. I have witnessed the pathetic condition of my relatives when the builder postponed the possession of their flat indefinitely and for another the tenant refused to vacate the house.
Amusing how Krishnaraj Sir took the best case scenario (which is never so) and yet concluded it is not worth it. Now imagine the taking the worst case scenario. I would rather be a homeless beggar than go through that hell.
He even didn't use his brain. Eighteen years back,his Rupees one is today ten paise purchasing power which means one rupee is depreciated by ninety percent. So,every rupee is depreciating year by year. True,your asset too depreciates but till certain period, assets value appreciates and if construction quality is excellent means along with your rooftop, if walls too are moulded, it's life period is minimum hundred years. Cities like Mumbai,Delhi or Kolkata where demand is very high in important places, getting tenant is easy and rent will only appreciate. Interest income is taxable but if you purchase your flat on your children name jointly with you, rental income will be tax free. That will neutralize inflation. After 18 years,a large portion of the flat value will be recovered with periodic rent increase. Location is important, not size or beauty of the flat because people want to stay heart of the city.
Apart from getting mental satisfaction of being a house owner, buying flat on emi is really risky. 1 thing Krishnaraj sir did not touch is municipal taxes n society charges - they are reccuring and very high. One has to pay emi n also bear burden of taxes, etc! As sir pointed out, apart only from "land", all other asset's are depreciating- One must consider with all care and attention, the pros n cons of buying house.
Sir 50 lacs at 5% yields only 2,50,000 so technically 20k per month।. Secondly there is appreciation of value, check prices of property in delhi Mumbai 18 years ago.
Yes with due respect to sir, i really appreciate his knowledge and experience that's why I watched his videos but sir missed price hike in rent which would increased by 7- 8 % per annum so that initial 50k rent would have gone to 1lacs in 9 years and upto 2 lacs rent per month in 18 years.
This is the most absurd advisor i have come acorss. Total non-Sense he speaks. The rentals double every 5 to 6 years whereas the EMI does not double. It reduces. As the person who bought the house is well off his income will also increase. He will foreclsoe the loan in 7 to 8 years. and then he will earn the rental income. plus property appreciation
@@macdeep8523 At 9% inflation 15L flat will be 1.08 Cr in 23 years. So even with boom cycle there is very little real appreciation. You are right that the boom cycle is gone so no point purchasing now for rental income. Thanks for the data points.
People who are good at it - are making good cash flow with rental yields. But you have to be that sort of person who is a hustler with good political contacts in the area and live close by. For straightforward people living far away and no contacts in the area - it is a nightmare.
@@TheSandsplash this can be true for land but not for flats in gated society in good area .Flats in good area will give you good rent and will appreciate in future even if the flat gets old in re development you will get benefits
one sided argument 1) Not considering capital appreciation of property 2) Rental income also increases 3) In intrest income, fd amount remains fixed and doesn't appreciate over time. Only the intrerest received Your analysis is flawed
Completely bogus analysis ! The appreciation value of property has not been considered. The rental is purely for maintenance of the flat. The property appreciation is the real gain. Further, he takes extraordinary situations of suicide, drugs etc to prove his point, which is an extreme situation.
I was expecting you to back your statement with numbers. Flats, if they ever appreciate, it's often less than keeping same money in savings account at 4%.
In Delhi NCR, kabza on a rental property is a common norm. The level of anxiety and legal procedures (along with time and a significant amount of expenditure) it brings to the owner is beyond any price appreciation or capital gains. It is so common that you stumble upon a random person here and he will have a similar story to share.
@@KAlpha09you have no idea. My friend bought 1bhk in 2006 at navi mumbai costing 12L. Now he get rentals 20-25k. I missed a 2bhk flat in kalyan whose price was 8-10L in 2006. Now that property has been redeveloped with 3bkh costing 1.3-1.5cr. Even i missed a 1bhk at virar in 2004 costing 4L. Now rentals are 12k.
If we talk about Bengaluru, then it is completely wrong analysis (highly negative side). 1. You can easily get 2-BHK in 1 Cr in WhiteField-Sarjapur area (excluding Brigade, Shobha, Prestige like prime builders), still you can still get decent 2-BHK with all good amenities. 2. Rental Income is at least 30k-45k for 2-BHK in these areas. Brigade, Shobha, Prestige 2-BHK rents are always 50k plus. 3. On 5th Year you can easily sell this 2-BHK for 1.5 Cr. 4. If you do not want to sell. Possibly price of flat will not in increase much, but rental will always.
rental yield is 3-4% of the property cost in the metros in general. If only the property value appreciates at least 8% per annum in the long term (5-7 yrs), someone can hope to beat equities with real estate investment.
My father bought a 1RK 200 sqft in MHADA in 1980 at Rs. 14k, now he earns 15k rent per month after 43 years, but building is going for redevelopment soon. However we must not forget the purchasing power of money in respective time period. House property rental yeild is just 1% for initial 10years (deduction of taxes, maintenance society, upkeep etc) is my experience from 2013, where as interest amount levied is just double the amount of loan in 20year tenure. So after 2043, will I get 1Cr rent per month for my flat which was costed me 1Cr in 2013? Absolutely not.
2 of my friends who bought flats for investment in Bombay / Delhi are struggling to sell off. They bought in 2014/2015. They can’t even sell at same price because no buyers. Plus tenant issues. Lol. One of them is in London. His tenant stopped rent in 2020 due to job loss at the beginning of Covid. Unimaginably stressful situation.
I don't agree with him he has not taken in to account 1st the initial rent would be less as compared to price but as the time passes the rental will increase, the value of house will increase 2nd for example I bought in 1984 2 BHK @ 145000 today it's 175 lacs, initial rent 5000 now rent 30000 3rd I bought in 1992 @ 235000 initial rent 1500 now 18000 and sale value 45-50 lacs 4th I bought Shop in 2002 @ 16 lacs initial rent 7000 now 50-60000 market value 175 lacs. So inshort capital appreciation and rent appreciation is not taken in to account. Yes if you want to buy outside Mumbai then the best investment is land in cities like Nashik, Aurangabad, Nagpur, Pune, Sangli, Satara etc.
He did not go into details and complexities and he mentioned that. He just gave an overview of the situation with pros and cons, Such detailed analysis will require an excel sheet. By the way, that is also available on RUclips if you look around.
Just like stocks are two types growth stocks and income stocks properties are also two types. For growth properties you need reliable contacts who can give insider information on 10 year development in the area. Bigshots have this info and they accumulate huge wealth buying multiple properties like this. Imcome properties are in already developed areas where the rentals are high but it is very difficult to find a good resale in these areas.
@@debajyotinath5021 you pay rent and you pay loan amount to the bank which is rent in a way but you will own the house after a while so taking loan to buy a house is a better choice based on the loan interest rate
Flat in a big city, reputed builder, with good construction quality will appreciate. My own flat in mumbai 500 sq ft was bought in 1970 for rs 8000. It is on the verge of re development and earning a monthly rent of 25000 . Also another flat belonging to my uncle bought in 1960s after re development earns a rent of Rs 70000/- serving as retirement income. Is this kind of appreciation possible for F. D. You cannot generalize that flats are not good investment. Location, infrastructure is the game changer.
@@fortalk6032He’s right , boss. In Bangalore , if you buy an apartment from a grade A builder in a decent location with good public transport connectivity, you will easily get tenants willing to pay a high rent and the property will appreciate year after year as well . Especially in Bangalore , there are so many projects coming up , the real estate market will continue to boom for the next 5 years atleast ..
Sir, I am sure the rent is higher after 2005. can you let me know what the rent was at 1980, 1990, 2000, 2010, 2020. Also, in 1970 how did you earn 8000 assuming you were between 10 to 20 years old. How many years did you wait to get huge rental income. If house is from previous generation, then it is better not to discuss more. 1970 and 2023 is 53 years difference.
You answered your own question, If in 1970, you bought a flat at 8000, and are earning 25k rent now. Do you think 50 years from now, someone who buys a flat at 80 lakhs today, will receive 2.5 crores monthly rent in 2074 based on your personal appreciation value? The reason for the incredible appreciation of current land value is simple - there was plenty of land after independence with mainly agriculture and industrial growth in that era. Today, with globalization, digitalization, and technological influence, international markets have diverged together to massively appreciate the land value for people that invested in those times. There has been a surge in employment rates from those times to now, people have moved to taking up apartments instead of living in joint families, more women employment in the current era compared to then. All of this contribute directly to demand for housing and expansion of industries. Hence, the price surge in land value. Now we have an economic stagnation in most cities save for Mumbai. But even in Mumbai, you'll never see the land appreciate like it did from 1960s to present rates. I also don't agree on many things with the video since he takes a lot of extreme situations and provides little to no evidence on risk. However, the whole justification that land value appreciates like it did in the early 60s without understanding markets or economic fluctuations is quite silly.
You are 100% Right. Never Invest In Real Estate In India For Profit.The Time is Over.Renting Is Better & Profitable.If it is Dubai -Buying is Profitable, because the rentals are very high.
Krish ji, you are always clear on your views and thoughts. Sometimes you give extreme examples related to property which may look harsh and rare examples but it is reality of life. I like the way you end your sessions, Jai Hind, Jai Maharashtra 🎉
This is so informative sir. I’m currently in rental and wanted to buy an apartment for my parents and seeing all these non-biased videos have made me clear on my decision
🙏आदरणीय आप जी ने बहुत ही सहज तरीके से विषय को समझाने का प्रयास किया है उसके लिए 🌹साधुवाद🌹 lआपने अनेक बैंकों में अपने पैसे को रखने के लिए सलाह दी है ,परंतु हकीकत यह है कि बैंकिंग भी आज आम आदमी के लिए सरदर्द बन चुकी है, नहीं क्या⁉️🙏 हकीकत यह है कि एक वर्ग विशेष बैंकों से नफरत करने लग गया है और करनी भी चाहिए अपने ही पैसे के लिए यह जो केवाईसी और भागदौड़ करवाते हैं वह आदमी को हैरान और☹️ परेशान करके रख देती है 🤔⁉️🙏
Sir... Ekdam sahi bole.... Only 1.8 % max returns vs FD 7 %... So roughly 300 % more yield in FD than in rental... Aur ek danger reason.... Prostitutuon.😮
Hello sir please answer me question, you didn't take parameters in account - rental appreciation every year - property appreciation every year - reducing rate of interest
Krishnaji....rental apartment is a very good retirement plan, especially in B-tier, suburban India. Both property owner (*if not greedy) and long-term punctual tenants benefit from it. But rental laws are bad in many indian cities.
You have pointed out the worst case scenario and missed the most obvious positive point - in 18 years a flat you buy for 1 crore would have appreciated to 4 crore in Mumbai. This is a too one-sided assessment.
Nifty ETF return is 15%. Same 1 Cr invested for 18 years will become 12.37 crore. On the other hand rental income from the same property will be around 0.33 crore considering 50000 initial rent per month and 10% increase in rent per year. That gives a total valuation of rs 4.33 cr over 18 years considering your estimate of 4 cr property value. So you are at net loss of 8 crore!! This video is only for properties bought for rental incomes which is a very bad deal according to the calculation above mentioned.
Fallacy no. 1 - Flat bought in affluent place. Other places give better rental yield. Fallacy 2 - The rent never remains same in 18 years. Rents double every 7 years. Fallacy 3 - Tax saving not taken into account. Fallacy 4 - Salaries increase over time and no one continues with Home loan for 18 years. On avg. home loans are paid off in 8-9 years. Fallacy 5 - Appreciation of the property not taken into account Fallacy 6 - No building goes into redevelopment in 40-50 years. New construction methods (Mivan) make the buildings upto 100 yrs or more. Thus, the argument and logic given are not valid
last year even we were thinking of investing in a flat or shop for rent. after learning about investing in equity (mutual funds and stocks), i put permanent full stop to real estate investing plans and instead chose equity market thanks to better returns, less headache and full transparency.
Very Informative. One solution is: both house owner & tenant should have flexible egos. Means they should think of honest & sincere negotiation in every aspect. This will also avoid legal disputes.
Capital appreciation argument is nonsense. Real Estate is the most illiquid asset. And trying to sell an old apartment with uncertain redevelopment plan is total nuts.
This reasoning & argument do not have any basis , it’s kind of pick & choose , very conveniently turning blind to other side of coin. For example the price of ur apartment would be close to double in 18 years while the value of your money will depreciate with time. Again rents are always appreciating with a avg of 8 to 10 % every year. Lastly never buy high value apartment with a motive of earning rental income.
Rental income is also taxable, so your net income after repairs and taxes are taxable. Also when you buy in a new development, you also pay Hsg Society maintenance charges which are generally landlords responsibility. People say appreciation, but appreciation is limited to around inflation costs. And if toy have bad luck, the tenant will damage the property. Will have to paint the house frequently.
You are calculating very practical as most of our indian does not have straight 1crore for investing in property line so we take loan immediate 50 lakhs
There is a big flaw in this scenario. The house will also appreciate over the 18 years. The average real estate appreciates by 5% and the rent appreciates between 4-10%. The house would be approximately worth 2.5Cr after 18 years, and rental would also be appreciating. You would have made about 1Cr from the rental and be sitting on an equity of 2.5Cr. From this point on it will always generate revenue or you can borrow against it.
Bang on to the point ! Summary : buy a house only if you are more than 90% sure of staying in it . Else don't , house / flat is not a good investment proposition.
इस video से पहले मुझे लगता था कि आप बहुत समझदार और ज्ञानी हो😊 you left two important points... dont know why & how. 1) Rental income increment every year. 2) appreciated value of the respective land of that flat after 18 years. 3) importance of that location after 18 years.
Good advise ! aside the urban nexal melodrama, I am too old to be a Marxist leftie 😅had read marx in my 20s and thought was a joke . You are doing really good job making people aware about the shortcomings of flat ownership .👌👌
He is telling the facts as per current market status. Please don’t consider old cases where people bought flat 20-30 yr back. The current real estate market is at its peak but for investor its better to invest the amount in stocks/mutual funds etc which is headache free.
The problems due to the tenant's behavior or actions are 100% real. I live in Varanasi and here property rates are decent. A doctor (BHU) had possession of three good flats in an apartment. One of the flats recently met with a suicide case. Now, no one is renting that flat and his other flats being adjacent to this one, are doomed as well. So he is at a complete loss.
yes rental yield is only 2 - 3 % in most areas. More than 5000 units of apartments are empty and not selling yet you are told this is a great investment.
Very right. Due to this misunderstanding housing has reached hyperinflationary levels. There are better and safe investment opportunities but it require expertise to counter negative returns of FDs after considering tax and inflation. Indexation benefit is mandatory and must be made applicable to FDs to counter inflation with lower tax rate. Why should people who invest in fixed income instruments suffer from negative returns due to high taxation and inflation. One should buy a house only for self occupation and not as investment. It is a basic necessity as it provides shelter. Govt should cap house prices. The prices have crossed affordability index. Every tom dick and harry wants to be a builder these days and the houses constructed does no have cross ventilation and one who resides in them has to depend on air conditioners and pay heavy electricity bills and spoil environment. It is really painful to see all this happening. It is not development in its true sense. It is a middle class trap.
If I hv 1cr rupees then I will buy this flat with cash. If I get 25k evry month,I will invest this money into a mutual fund. Rental yeild every year increase by 5% .after 20 year almost will get 2.5cr from mutual fund.evry year I will increase my sip amount by 5%.also after 18 years my property value will double that time .
Mera manna hai: 1) Flat property(not independent house with land) can never be a good investment in 95% cases, even safe fd give better returns you can calculate and i can explain if somebody is not convinced with this. 2) 5% cases can have better investment option, Because flat property investment is like share market, so if you got a chance to make entry on low price due to some reason and later did exit on good price then you can make profit in 4-5 years.Recently in 2022 a similar scenario where some people make entry on low due to covid criss in property market then 2024 price increased and they were able to make profit. So in normal market conditions flat can never be a great investment, you can try only if you are getting any good deal on low due to some reason. Important tip: never purchase a flat of suddenly high growing market on such big high prices , jo jitni jaldi upar jata hai utni jldi neeche bhi aata hai😊
All the points mentioned by Krish sir are correct . In big cities, you will get a new launch in every 2-6 months duration with new amenities. So tenants also prefer to stay in new societies rather than staying in a flat that is more than 10+ yr old. And its one of the toughest task to sale a old flat even in posch areas considering new lauch available at the same rate.
How to calculate intrinsic value of a rental property(not market value) (Average Annual Rent minus Service charges Annualy) multiplied by 10 Example:- 1BHK apartment Average annual rent: 35,000 Service charges: 10,000 Intrinsic value of the property: (35,000-10,000)×10=2.5lacs Market value may be 7.5lacs, 3 times the intrinsic value of the property Note: It's average annual rent of that area for a similar property, not peak annual rent. Also you need to adjust the property price if it's an older property. Apartment prices usually follow Bell Shaped graph in Prices to Duration curve, where as Villas, Townhouses usually follow a positive linear line which is closer to x-axis line in the graph, but depends on the initial purchase price of the property
Where'd you get the figure of 10 years? Even red brick buildings usually have 50-60 years life. The multiplier of intrinsic value should ideally be 50 or at least 40, so take an avg of 45. Also, service charges to landlord are not that high (as %age of rentals). A 2 BHK in Mumbai in a decent locality can cost 70k a month or 840000 annually. 40 k may be the annual charge (prop tax, repairs excl. society maintenance that's given by the tenant directly), so annual income 8 lakhs. The intrinsic value thus comes out to 8 lakhs X 45 = Rs. 3.6 Cr. From a buyer's POV, this instrinsic value may be compared with market value and person's affordability and decision to buy may be taken even if market value is close to or higher than intrinsic as tax breaks on home buying loans are there and ownership of asset enables appreciation benefits renting does not.
Income tax exemption benefit is a carrot🥕 shown by government to run banks, economy at the expense of flat buyers. And who benefits from realestate business, it's ultimately politicians.
Purchase flat and give for rent like room wise with semi furnish ... remember one thing real estate will always be on rise (10%)will be difficult for people soon to purchase. Also remember to think about infra of that area and future needs.
Rent will increase in 18 years. Keeping bank FD is waste.. instead of flat if its independent house then rents is best option. Rents will also increase with inflation
But the EMI will remain at 50,000 while the rent will increase by 4-10% every year in an already developed area and even more in an upcoming area. So we have to calculate using that.
Also due to low urbanization and increasing population in India along with high population density, rent and property prices rise faster than inflation in most cases.
agar kuch v rental per chadha na ho to dont go for loans of 50% capital and 50% loan you will not get any benefits , your capital should be of 85% and loan can be 15% then you will easily pay the emi as well as little bit of income from rental thats the hack and it's might sound cruel if u say u dont have money then don't go for rental services
The rent of the house is 50,000 per month for first year. The rent will also increse every 11 months. Considering this, the rent will increase a lot after 18 years. Considering 8% per year increase in rent it will become 4 times in 18 years.
Below cases are not taken into consideration. 1. People normally complete the home loan within 5 to 7 years. 2. 50 lakh keeping in bank for fix deposit is not a good idea because we all know this amount will be not sufficient or will not have same value like today after few years due to inflation and other reason. Some year back 10 thousand salary was very big salary but now it is like minimum wages. But property can give multiple returns because shortage of land in India we have high population. 3. Rent of property always goes on increasing some case increased upto double in 5-10 years. 4. Buying a property in Mumbai in few years would be difficult because land shortage and high price.
There is only one scenarios where you should be buying a flat - either you or your parents/family are going to live there all the time. that's it. If you work and live somewhere else and buy a house as an "investment" you are fucked!
Isme time value of money bhi add kr lo (8-9% saal ka inflation) to wo aaj ka ₹50l, 18 saal baad ka ₹2.36Cr ban jata hai.... ye hi sab soch k me ghar nahi le pa raha.
- what about appreciation? One of my property gone 10x in 20 years. - what if I purchase 50 Lakh flat in Tier 2 city without taking loan? - Rent will increase with time. - Burden of EMI will reduce. Say if I was paying 5000 as my EMI in 2010, it was very tough for me to manage. But today it's burden is lighter. In the entire video, you kept on counting problems, but no solution was given till the end of video.
He means to say if u purchase a flat for self use then it's a good deal. ...but to consider it as a long term investment is fallacy....u may gain or may not be ..in the long run.
No doubt flats are cheaper than buying a plot and construct your home in the same locality. But if one can sacrifice the locality, always buy a plot because land prices will always shoot up because land is a limited asset. Though you are buying a plot to stay and not as investment but it always a good feeling to see your the rates of your house is getting increased. On the other hand flats value always going to depreciate in long term.
Good points Sir. But buying property is not that bad investment, you missed one important point that is a customer can do prepayments as per his capacity( as per his savings as you mentioned he is doing job) and close the loan before the loan tenure and save lot of interest amount. Also, having a diversified portfolio is never a bad idea like savings in bank account or FD, bonds, stocks, Gold, real estate etc...
First time, I felt he is so wrong, but not so wrong too. 1) One should always have a house, for mental piece. 2) The house value increases 2.5 times at least in 18 years. 3) The 25k you get from rent you can adjust that in your EMI that you pay to Bank that reduces your burden of 50K EMI. 4) It is bank's data that most flat owners pay their loan within first 9 years. 5) Imgine having 1Cr in bank FD and see 1Cr house you living with your family, what would you choose. 6) Yes there are cons too in buying house too and so do keeping money in bank too, what if the bank goes bankrupt.
Buy flat or land anything without thinking to put ur money on fd, u can have multiple fds but having multiple house or single even is a dream for everybody
![Passive Income From a Second Home? [AirBnb VS Rental]](http://i.ytimg.com/vi/zOdANwjAbUg/mqdefault.jpg)
Real Estate in India is very profitable if you are a goonda backed by a lawyer. For others it is best to work hard and leave the country for greener pastures where the police is professional and justice is not delayed forever.
Agreed
Bro police can be corrupt in developed countries as well
@@BING9957
Off course, but its exception not the norm.
Corrupt officers do get dismissed + jail in developed nations. In Vishaguru they are just transferred.
@@fanaticcoder3320In vishwaguru there is lack of media and plenty of Andhbhakts who thinks prime minister is avatar
This is called poor illiterare democracy..caste creed religion decides vote vank.....i hope one day people of india become Good gentle professional type people@@abhishekkumar-bt6tu
I agree partially, if you buy society flat or builder floor then don't rent out , buy for self stay . However if you are buying plot and doing construction yourself , then rent out floorwise to seperate tenants on each floor because here you can exercise greater control over the property. You need a constant caretaker of property and need to ensure timely renewal of lease and need to get new tenants well before the old tenant leaves . See in that case , rental yield increases over time , after 15 to 20 years , your property will (or should) become free from EMI and the overall rental yield will increase 2.5 times or 3 times of what you were getting initially when you first started renting the premises . So real solid income starts after property is EMI free and all this while there is capital appreciation. If you actually calculate capital appreciation rate plus tax saving plus rental yield in 15 to 20 years , your overall property income and value will reach your initial overall investment in the very least .
That's a false assumption.
That's why most folks fall for it. We have our own property where we stay in ground floor and 1st floor is given for rent.
In initial years, rent increases annually. But after few years rent stagnates as property also gets old. Now if you want to increase rent, then you have to redo the interiors and repaint it after every couple of years. Trust me there are lot of factors that people don't consider.
That’s a different case he is talking about apartment only no plot.
@@WalterWhite-og6wjPlus I think it becomes too tedious and cumbersome for the owners after a while to maintain the flat and stop worrying about the dubious intentions of the tenants etc. I am pretty sure in the long run, in the majority of cases, property investment or rental income does not beat mf returns. I have witnessed the pathetic condition of my relatives when the builder postponed the possession of their flat indefinitely and for another the tenant refused to vacate the house.
Amusing how Krishnaraj Sir took the best case scenario (which is never so) and yet concluded it is not worth it. Now imagine the taking the worst case scenario. I would rather be a homeless beggar than go through that hell.
He even didn't use his brain. Eighteen years back,his Rupees one is today ten paise purchasing power which means one rupee is depreciated by ninety percent. So,every rupee is depreciating year by year. True,your asset too depreciates but till certain period, assets value appreciates and if construction quality is excellent means along with your rooftop, if walls too are moulded, it's life period is minimum hundred years. Cities like Mumbai,Delhi or Kolkata where demand is very high in important places, getting tenant is easy and rent will only appreciate. Interest income is taxable but if you purchase your flat on your children name jointly with you, rental income will be tax free. That will neutralize inflation. After 18 years,a large portion of the flat value will be recovered with periodic rent increase. Location is important, not size or beauty of the flat because people want to stay heart of the city.
@partha9752 read Section 64(1A) of Income tax act.
@@partha9752 getting tenenats from the heart of the any state is easy compared to other states.
Apart from getting mental satisfaction of being a house owner, buying flat on emi is really risky. 1 thing Krishnaraj sir did not touch is municipal taxes n society charges - they are reccuring and very high. One has to pay emi n also bear burden of taxes, etc!
As sir pointed out, apart only from "land", all other asset's are depreciating-
One must consider with all care and attention, the pros n cons of buying house.
Forever ever-increasing rent paying is no solution either. Rather one should pay limited time EMI and own a house / flat / apartment where he lives.
Even land is depreciating.
@@sandeshbhandare7238how??
I had same thoughts. But ppl usually buy apartments because 'some' friend did so and wife thinks you should do it too.
If you analyse people’s problems closely, usually the wife has a hand in it.
Hahahahaha.. Same is happening with me... Toooo much pressure from peers and family
😂😂😂
Sir 50 lacs at 5% yields only 2,50,000 so technically 20k per month।. Secondly there is appreciation of value, check prices of property in delhi Mumbai 18 years ago.
Yes with due respect to sir, i really appreciate his knowledge and experience that's why I watched his videos but sir missed price hike in rent which would increased by 7- 8 % per annum so that initial 50k rent would have gone to 1lacs in 9 years and upto 2 lacs rent per month in 18 years.
Bacho ki tarah baatien kr k jo mann m aayi without logic one sided , he proved his point
2000 ( 15 lakh flat in Wadala ) now cost 1.25 cr ... Max .. but that boom cycle has gone now
. 1.15 cr flat will not become 5 cr in next 18 years ...
This is the most absurd advisor i have come acorss. Total non-Sense he speaks. The rentals double every 5 to 6 years whereas the EMI does not double. It reduces. As the person who bought the house is well off his income will also increase. He will foreclsoe the loan in 7 to 8 years. and then he will earn the rental income. plus property appreciation
@@macdeep8523 At 9% inflation 15L flat will be 1.08 Cr in 23 years. So even with boom cycle there is very little real appreciation. You are right that the boom cycle is gone so no point purchasing now for rental income. Thanks for the data points.
People who are good at it - are making good cash flow with rental yields. But you have to be that sort of person who is a hustler with good political contacts in the area and live close by. For straightforward people living far away and no contacts in the area - it is a nightmare.
You are spot on, the local people in power has much in control for these things if you are not native or living far away
Exactly my thoughts
@@TheSandsplash this can be true for land but not for flats in gated society in good area .Flats in good area will give you good rent and will appreciate in future even if the flat gets old in re development you will get benefits
one sided argument
1) Not considering capital appreciation of property
2) Rental income also increases
3) In intrest income, fd amount remains fixed and doesn't appreciate over time. Only the intrerest received
Your analysis is flawed
Kitne paise latak Gaye 😂
real state se achha kuchh nhi
found the real estate dalal
What’s the appreciated value of a 20-30 year old flat? It will not be a suitable place to live in!!
Completely bogus analysis ! The appreciation value of property has not been considered. The rental is purely for maintenance of the flat. The property appreciation is the real gain. Further, he takes extraordinary situations of suicide, drugs etc to prove his point, which is an extreme situation.
Also no discussion of leverage when buying a flat via home loan
I was expecting you to back your statement with numbers. Flats, if they ever appreciate, it's often less than keeping same money in savings account at 4%.
@@KAlpha09 u have no idea!
In Delhi NCR, kabza on a rental property is a common norm. The level of anxiety and legal procedures (along with time and a significant amount of expenditure) it brings to the owner is beyond any price appreciation or capital gains. It is so common that you stumble upon a random person here and he will have a similar story to share.
@@KAlpha09you have no idea.
My friend bought 1bhk in 2006 at navi mumbai costing 12L. Now he get rentals 20-25k.
I missed a 2bhk flat in kalyan whose price was 8-10L in 2006. Now that property has been redeveloped with 3bkh costing 1.3-1.5cr.
Even i missed a 1bhk at virar in 2004 costing 4L. Now rentals are 12k.
But sir 50lacs after 18years may be worth of 12lacs , should not we need to increase fd amount such that it beats inflation?
If we talk about Bengaluru, then it is completely wrong analysis (highly negative side).
1. You can easily get 2-BHK in 1 Cr in WhiteField-Sarjapur area (excluding Brigade, Shobha, Prestige like prime builders), still you can still get decent 2-BHK with all good amenities.
2. Rental Income is at least 30k-45k for 2-BHK in these areas. Brigade, Shobha, Prestige 2-BHK rents are always 50k plus.
3. On 5th Year you can easily sell this 2-BHK for 1.5 Cr.
4. If you do not want to sell. Possibly price of flat will not in increase much, but rental will always.
Bangalore rents are sky high
rental yield is 3-4% of the property cost in the metros in general. If only the property value appreciates at least 8% per annum in the long term (5-7 yrs), someone can hope to beat equities with real estate investment.
My father bought a 1RK 200 sqft in MHADA in 1980 at Rs. 14k, now he earns 15k rent per month after 43 years, but building is going for redevelopment soon.
However we must not forget the purchasing power of money in respective time period.
House property rental yeild is just 1% for initial 10years (deduction of taxes, maintenance society, upkeep etc) is my experience from 2013, where as interest amount levied is just double the amount of loan in 20year tenure.
So after 2043, will I get 1Cr rent per month for my flat which was costed me 1Cr in 2013? Absolutely not.
Only people who should do this are people who have net worth above 5-7 Cr
2 of my friends who bought flats for investment in Bombay / Delhi are struggling to sell off. They bought in 2014/2015. They can’t even sell at same price because no buyers. Plus tenant issues. Lol. One of them is in London. His tenant stopped rent in 2020 due to job loss at the beginning of Covid. Unimaginably stressful situation.
Whr is the flat let me know i will sell
I would like to know more on the property in question. Do let me know if we can connect.
If it is 2000 instead of 2014 , your friend would have been in different eltie zone
.. they missed cycle by 10/12 years .... Also location matters
@@macdeep8523how to spot the cycle
@@macdeep8523 2004 was also good time 😁 even in tier 3 cities 2007 also great 😁
I don't agree with him he has not taken in to account 1st the initial rent would be less as compared to price but as the time passes the rental will increase, the value of house will increase 2nd for example I bought in 1984 2 BHK @ 145000 today it's 175 lacs, initial rent 5000 now rent 30000 3rd I bought in 1992 @ 235000 initial rent 1500 now 18000 and sale value 45-50 lacs 4th I bought Shop in 2002 @ 16 lacs initial rent 7000 now 50-60000 market value 175 lacs. So inshort capital appreciation and rent appreciation is not taken in to account. Yes if you want to buy outside Mumbai then the best investment is land in cities like Nashik, Aurangabad, Nagpur, Pune, Sangli, Satara etc.
Ya He missed on Rental Appreciation and Property Value Appreciation on Long Term Basis.
Hence pressing the dislike button. What a waste video
He did not go into details and complexities and he mentioned that. He just gave an overview of the situation with pros and cons, Such detailed analysis will require an excel sheet. By the way, that is also available on RUclips if you look around.
मौर्य जी
You are right
Exactly, my parents bought our current house in early 2000s for 6 lacs now it's valued over 70 lacs. And these finfluencers say 'bhade pe raho'
Just like stocks are two types growth stocks and income stocks properties are also two types. For growth properties you need reliable contacts who can give insider information on 10 year development in the area. Bigshots have this info and they accumulate huge wealth buying multiple properties like this. Imcome properties are in already developed areas where the rentals are high but it is very difficult to find a good resale in these areas.
Real estate has taught me that if you don’t take risk…
You’re paying rent to someone who did…
Thanks
if you take risk in real estate, it gives you the false feeling that you have made profit, whereas actually you haven't.
@@debajyotinath5021 you pay rent and you pay loan amount to the bank which is rent in a way but you will own the house after a while so taking loan to buy a house is a better choice based on the loan interest rate
True@@debajyotinath5021
And you can move into a new modern home, In case you don't like the house. But the owner can't. He is stuck for life.
Flat in a big city, reputed builder, with good construction quality will appreciate. My own flat in mumbai 500 sq ft was bought in 1970 for rs 8000. It is on the verge of re development and earning a monthly rent of 25000 . Also another flat belonging to my uncle bought in 1960s after re development earns a rent of Rs 70000/- serving as retirement income. Is this kind of appreciation possible for F. D. You cannot generalize that flats are not good investment. Location, infrastructure is the game changer.
Boss, can you come out of your past and talk in terms of current rates
@@fortalk6032He’s right , boss. In Bangalore , if you buy an apartment from a grade A builder in a decent location with good public transport connectivity, you will easily get tenants willing to pay a high rent and the property will appreciate year after year as well . Especially in Bangalore , there are so many projects coming up , the real estate market will continue to boom for the next 5 years atleast ..
Sir, I am sure the rent is higher after 2005. can you let me know what the rent was at 1980, 1990, 2000, 2010, 2020. Also, in 1970 how did you earn 8000 assuming you were between 10 to 20 years old. How many years did you wait to get huge rental income. If house is from previous generation, then it is better not to discuss more. 1970 and 2023 is 53 years difference.
Absolutely True
You answered your own question, If in 1970, you bought a flat at 8000, and are earning 25k rent now. Do you think 50 years from now, someone who buys a flat at 80 lakhs today, will receive 2.5 crores monthly rent in 2074 based on your personal appreciation value?
The reason for the incredible appreciation of current land value is simple - there was plenty of land after independence with mainly agriculture and industrial growth in that era. Today, with globalization, digitalization, and technological influence, international markets have diverged together to massively appreciate the land value for people that invested in those times. There has been a surge in employment rates from those times to now, people have moved to taking up apartments instead of living in joint families, more women employment in the current era compared to then. All of this contribute directly to demand for housing and expansion of industries. Hence, the price surge in land value.
Now we have an economic stagnation in most cities save for Mumbai. But even in Mumbai, you'll never see the land appreciate like it did from 1960s to present rates.
I also don't agree on many things with the video since he takes a lot of extreme situations and provides little to no evidence on risk. However, the whole justification that land value appreciates like it did in the early 60s without understanding markets or economic fluctuations is quite silly.
I don't know your intention but you so real i have never seen such person in this space
You are 100% Right.
Never Invest In Real Estate In India For Profit.The Time is Over.Renting Is Better & Profitable.If it is Dubai -Buying is Profitable, because the rentals are very high.
Krish ji, you are always clear on your views and thoughts. Sometimes you give extreme examples related to property which may look harsh and rare examples but it is reality of life. I like the way you end your sessions, Jai Hind, Jai Maharashtra 🎉
This is so informative sir. I’m currently in rental and wanted to buy an apartment for my parents and seeing all these non-biased videos have made me clear on my decision
🙏आदरणीय आप जी ने बहुत ही सहज तरीके से विषय को समझाने का प्रयास किया है उसके लिए 🌹साधुवाद🌹 lआपने अनेक बैंकों में अपने पैसे को रखने के लिए सलाह दी है ,परंतु हकीकत यह है कि बैंकिंग भी आज आम आदमी के लिए सरदर्द बन चुकी है, नहीं क्या⁉️🙏
हकीकत यह है कि एक वर्ग विशेष बैंकों से नफरत करने लग गया है और करनी भी चाहिए अपने ही पैसे के लिए यह जो केवाईसी और भागदौड़ करवाते हैं वह आदमी को हैरान और☹️ परेशान करके रख देती है 🤔⁉️🙏
Sir... Ekdam sahi bole.... Only 1.8 % max returns vs FD 7 %... So roughly 300 % more yield in FD than in rental... Aur ek danger reason.... Prostitutuon.😮
Hello sir please answer me question, you didn't take parameters in account
- rental appreciation every year
- property appreciation every year
- reducing rate of interest
Krishnaji....rental apartment is a very good retirement plan, especially in B-tier, suburban India. Both property owner (*if not greedy) and long-term punctual tenants benefit from it. But rental laws are bad in many indian cities.
Rental income is good in pockets , time of your purchase and demand in locality based on migration from surrounding villages
You have pointed out the worst case scenario and missed the most obvious positive point - in 18 years a flat you buy for 1 crore would have appreciated to 4 crore in Mumbai. This is a too one-sided assessment.
Exactly ... He forgot to take into account, the appreciation of the flat itself ...
Nifty ETF return is 15%. Same 1 Cr invested for 18 years will become 12.37 crore.
On the other hand rental income from the same property will be around 0.33 crore considering 50000 initial rent per month and 10% increase in rent per year.
That gives a total valuation of rs 4.33 cr over 18 years considering your estimate of 4 cr property value.
So you are at net loss of 8 crore!!
This video is only for properties bought for rental incomes which is a very bad deal according to the calculation above mentioned.
Very good points. Thanks,
There is also the point of liquidity.
Fallacy no. 1 - Flat bought in affluent place. Other places give better rental yield.
Fallacy 2 - The rent never remains same in 18 years. Rents double every 7 years.
Fallacy 3 - Tax saving not taken into account.
Fallacy 4 - Salaries increase over time and no one continues with Home loan for 18 years. On avg. home loans are paid off in 8-9 years.
Fallacy 5 - Appreciation of the property not taken into account
Fallacy 6 - No building goes into redevelopment in 40-50 years. New construction methods (Mivan) make the buildings upto 100 yrs or more.
Thus, the argument and logic given are not valid
last year even we were thinking of investing in a flat or shop for rent. after learning about investing in equity (mutual funds and stocks), i put permanent full stop to real estate investing plans and instead chose equity market thanks to better returns, less headache and full transparency.
A real eye opener video
Krish sir you are simpy awesome
Please keep keep posting such videos
Very Informative. One solution is: both house owner & tenant should have flexible egos. Means they should think of honest & sincere negotiation in every aspect. This will also avoid legal disputes.
Capital appreciation argument is nonsense. Real Estate is the most illiquid asset. And trying to sell an old apartment with uncertain redevelopment plan is total nuts.
Best guardian for those people who are investing money in property
very valuable info you have shared. Thanks Alot
Thanks with regards for provide us valueable vedio.
This reasoning & argument do not have any basis , it’s kind of pick & choose , very conveniently turning blind to other side of coin. For example the price of ur apartment would be close to double in 18 years while the value of your money will depreciate with time. Again rents are always appreciating with a avg of 8 to 10 % every year. Lastly never buy high value apartment with a motive of earning rental income.
So taking your own words where do you see "low value apartment" for rental income purpose
You have touched all possible extereme negative points. may be add... earthquake as well
Rental yield across India is 4%, rental increment is 9-10%. Home loan interest is 8% in last 10 years.. now calculate yourself.
I fully agree sir thanks for the right true information thanks 🙏🙏
Rental income is also taxable, so your net income after repairs and taxes are taxable. Also when you buy in a new development, you also pay Hsg Society maintenance charges which are generally landlords responsibility. People say appreciation, but appreciation is limited to around inflation costs. And if toy have bad luck, the tenant will damage the property. Will have to paint the house frequently.
You are calculating very practical as most of our indian does not have straight 1crore for investing in property line so we take loan immediate 50 lakhs
Some of the flaws in the evaluation. Rent cannot stayed same for next 18 years.
Of course it's averaged out for simplification.
Well researched much needed.
There is a big flaw in this scenario. The house will also appreciate over the 18 years. The average real estate appreciates by 5% and the rent appreciates between 4-10%. The house would be approximately worth 2.5Cr after 18 years, and rental would also be appreciating. You would have made about 1Cr from the rental and be sitting on an equity of 2.5Cr. From this point on it will always generate revenue or you can borrow against it.
Bang on to the point ! Summary : buy a house only if you are more than 90% sure of staying in it . Else don't , house / flat is not a good investment proposition.
Sar you are doing a noble job of helping people avoid mistakes
इस video से पहले मुझे लगता था कि आप बहुत समझदार और ज्ञानी हो😊
you left two important points... dont know why & how.
1) Rental income increment every year.
2) appreciated value of the respective land of that flat after 18 years.
3) importance of that location after 18 years.
Right sir 100% 👍👍. Peoples dont have or poor investment knowledge.
Agreed 100% just went through this night mare my tenant did a scam and ran away and all his creditors sealed shop it was a horrible time
Good advise ! aside the urban nexal melodrama, I am too old to be a Marxist leftie 😅had read marx in my 20s and thought was a joke . You are doing really good job making people aware about the shortcomings of flat ownership .👌👌
The main reason to buy a flat is at 02:02
He is telling the facts as per current market status. Please don’t consider old cases where people bought flat 20-30 yr back. The current real estate market is at its peak but for investor its better to invest the amount in stocks/mutual funds etc which is headache free.
Yes, easy to liquidate
Ghar and flat are two different thing. Ghar means house with land and flat matlb bus ek floor .
bakwaas, rent or makan ka price 18 saal baad kitna badh hata hai jara check kar lo apne Ghar ka
Please calculate CAGR return. You will get answer. He is absolutely right.
Check unko nhi aapko krne ki jrurt hai 😅
Bhai hmne 99 may - 3 lakh k ghr Liya tha jo hmne 2020 may 60 lakh k sale kra Hai plus ussy time toh inflation bhi itne nhi thee. Hisab luga ly
@@P_Apegaon no my mom dad made lot of profit with real estate
Rent has to be considered as incremental ordered as rent will be not same dor 18 years
The problems due to the tenant's behavior or actions are 100% real. I live in Varanasi and here property rates are decent. A doctor (BHU) had possession of three good flats in an apartment. One of the flats recently met with a suicide case. Now, no one is renting that flat and his other flats being adjacent to this one, are doomed as well. So he is at a complete loss.
yes rental yield is only 2 - 3 % in most areas. More than 5000 units of apartments are empty and not selling yet you are told this is a great investment.
Very right. Due to this misunderstanding housing has reached hyperinflationary levels. There are better and safe investment opportunities but it require expertise to counter negative returns of FDs after considering tax and inflation. Indexation benefit is mandatory and must be made applicable to FDs to counter inflation with lower tax rate. Why should people who invest in fixed income instruments suffer from negative returns due to high taxation and inflation. One should buy a house only for self occupation and not as investment. It is a basic necessity as it provides shelter. Govt should cap house prices. The prices have crossed affordability index. Every tom dick and harry wants to be a builder these days and the houses constructed does no have cross ventilation and one who resides in them has to depend on air conditioners and pay heavy electricity bills and spoil environment. It is really painful to see all this happening. It is not development in its true sense. It is a middle class trap.
Exactly bro. I commented the same thing in comment box
If I hv 1cr rupees then I will buy this flat with cash. If I get 25k evry month,I will invest this money into a mutual fund. Rental yeild every year increase by 5% .after 20 year almost will get 2.5cr from mutual fund.evry year I will increase my sip amount by 5%.also after 18 years my property value will double that time .
That 1 Cr in mutual fund with 15-20% return for 20 years …..
Aap nay bikul 100% theek practical baat ki hai.
The soothing sound of rain behind is amazing with all the wisdom shared in this video.
Mera manna hai:
1) Flat property(not independent house with land) can never be a good investment in 95% cases, even safe fd give better returns you can calculate and i can explain if somebody is not convinced with this.
2) 5% cases can have better investment option, Because flat property investment is like share market, so if you got a chance to make entry on low price due to some reason and later did exit on good price then you can make profit in 4-5 years.Recently in 2022 a similar scenario where some people make entry on low due to covid criss in property market then 2024 price increased and they were able to make profit.
So in normal market conditions flat can never be a great investment, you can try only if you are getting any good deal on low due to some reason.
Important tip: never purchase a flat of suddenly high growing market on such big high prices , jo jitni jaldi upar jata hai utni jldi neeche bhi aata hai😊
Why do you want to recover from house in the first place?
All the points mentioned by Krish sir are correct . In big cities, you will get a new launch in every 2-6 months duration with new amenities. So tenants also prefer to stay in new societies rather than staying in a flat that is more than 10+ yr old. And its one of the toughest task to sale a old flat even in posch areas considering new lauch available at the same rate.
How to calculate intrinsic value of a rental property(not market value)
(Average Annual Rent minus Service charges Annualy) multiplied by 10
Example:-
1BHK apartment
Average annual rent: 35,000
Service charges: 10,000
Intrinsic value of the property: (35,000-10,000)×10=2.5lacs
Market value may be 7.5lacs, 3 times the intrinsic value of the property
Note: It's average annual rent of that area for a similar property, not peak annual rent. Also you need to adjust the property price if it's an older property. Apartment prices usually follow Bell Shaped graph in Prices to Duration curve, where as Villas, Townhouses usually follow a positive linear line which is closer to x-axis line in the graph, but depends on the initial purchase price of the property
Where'd you get the figure of 10 years? Even red brick buildings usually have 50-60 years life. The multiplier of intrinsic value should ideally be 50 or at least 40, so take an avg of 45. Also, service charges to landlord are not that high (as %age of rentals). A 2 BHK in Mumbai in a decent locality can cost 70k a month or 840000 annually. 40 k may be the annual charge (prop tax, repairs excl. society maintenance that's given by the tenant directly), so annual income 8 lakhs. The intrinsic value thus comes out to 8 lakhs X 45 = Rs. 3.6 Cr. From a buyer's POV, this instrinsic value may be compared with market value and person's affordability and decision to buy may be taken even if market value is close to or higher than intrinsic as tax breaks on home buying loans are there and ownership of asset enables appreciation benefits renting does not.
Income tax exemption benefit is a carrot🥕 shown by government to run banks, economy at the expense of flat buyers. And who benefits from realestate business, it's ultimately politicians.
Land is more valuable than rental income or building on land.
Location will have cost .. material may depreciate .. not a pure asset but not so grim
capital appreciation ?
Purchase flat and give for rent like room wise with semi furnish ...
remember one thing real estate will always be on rise (10%)will be difficult for people soon to purchase.
Also remember to think about infra of that area and future needs.
You should also mention case where people pre close the loan... In such cases, how calculation work out....
What about appreciation of rents over the years?
Rent will increase in 18 years. Keeping bank FD is waste.. instead of flat if its independent house then rents is best option. Rents will also increase with inflation
Nice topic always use your house/flat for your use it is good to stay blessed rather than rent
But the EMI will remain at 50,000 while the rent will increase by 4-10% every year in an already developed area and even more in an upcoming area.
So we have to calculate using that.
Also due to low urbanization and increasing population in India along with high population density, rent and property prices rise faster than inflation in most cases.
agar kuch v rental per chadha na ho to dont go for loans of 50% capital and 50% loan you will not get any benefits , your capital should be of 85% and loan can be 15% then you will easily pay the emi as well as little bit of income from rental thats the hack and it's might sound cruel if u say u dont have money then don't go for rental services
We should also consider positive scenario where we buy flat and sell after those 18 years
The rent of the house is 50,000 per month for first year.
The rent will also increse every 11 months.
Considering this, the rent will increase a lot after 18 years.
Considering 8% per year increase in rent it will become 4 times in 18 years.
Below cases are not taken into consideration.
1. People normally complete the home loan within 5 to 7 years.
2. 50 lakh keeping in bank for fix deposit is not a good idea because we all know this amount will be not sufficient or will not have same value like today after few years due to inflation and other reason. Some year back 10 thousand salary was very big salary but now it is like minimum wages. But property can give multiple returns because shortage of land in India we have high population.
3. Rent of property always goes on increasing some case increased upto double in 5-10 years.
4. Buying a property in Mumbai in few years would be difficult because land shortage and high price.
There is only one scenarios where you should be buying a flat - either you or your parents/family are going to live there all the time. that's it.
If you work and live somewhere else and buy a house as an "investment" you are fucked!
Giving rent is good if someone one having 3-4 flats, can give dedicated time mannage the flats. Single flat rent is a headache.
Good explanation sir
The biggest achievement for a young working professional is to leave this country and leave abroad.
Thanks u sir aap Hai to hum. AAM AADMI saved hai
But the flat pricee will also rise in 18 yrs taking only 5% per annum it will become 2.4 cr
What about inflation....price would be same
Some PPL are very negative and I see this person as one of them , always negative about property buying 😂
😂😂😂
You're absolutely right. Tension rehta hai landlord ko.
What about plot from builders should we buy ?
One thing you missed sir, Rent (50000) will increase by around 10% every year.
Isme time value of money bhi add kr lo (8-9% saal ka inflation) to wo aaj ka ₹50l, 18 saal baad ka ₹2.36Cr ban jata hai.... ye hi sab soch k me ghar nahi le pa raha.
- what about appreciation?
One of my property gone 10x in 20 years.
- what if I purchase 50 Lakh flat in Tier 2 city without taking loan?
- Rent will increase with time.
- Burden of EMI will reduce. Say if I was paying 5000 as my EMI in 2010, it was very tough for me to manage. But today it's burden is lighter.
In the entire video, you kept on counting problems, but no solution was given till the end of video.
He means to say if u purchase a flat for self use then it's a good deal. ...but to consider it as a long term investment is fallacy....u may gain or may not be ..in the long run.
Good analysis. Thanks.
No doubt flats are cheaper than buying a plot and construct your home in the same locality. But if one can sacrifice the locality, always buy a plot because land prices will always shoot up because land is a limited asset. Though you are buying a plot to stay and not as investment but it always a good feeling to see your the rates of your house is getting increased. On the other hand flats value always going to depreciate in long term.
Good points Sir. But buying property is not that bad investment, you missed one important point that is a customer can do prepayments as per his capacity( as per his savings as you mentioned he is doing job) and close the loan before the loan tenure and save lot of interest amount.
Also, having a diversified portfolio is never a bad idea like savings in bank account or FD, bonds, stocks, Gold, real estate etc...
Appreciation se iski kimat ho sakta hai 5 to 10 times ho jaye 18 yeara mai... Vi bhi count karo bhai sahib
Thanks Sir 🙏
First time, I felt he is so wrong, but not so wrong too.
1) One should always have a house, for mental piece.
2) The house value increases 2.5 times at least in 18 years.
3) The 25k you get from rent you can adjust that in your EMI that you pay to Bank that reduces your burden of 50K EMI.
4) It is bank's data that most flat owners pay their loan within first 9 years.
5) Imgine having 1Cr in bank FD and see 1Cr house you living with your family, what would you choose.
6) Yes there are cons too in buying house too and so do keeping money in bank too, what if the bank goes bankrupt.
Correct
That's why you shouldn't keep money in one bank account, maybe divide it in several other bank accounts so you can get minimum 5 lakhs back
Buy flat or land anything without thinking to put ur money on fd, u can have multiple fds but having multiple house or single even is a dream for everybody
What if the construction is of poor quality??. I have seen flats where leakages start within 10 yrs even before the tenure of EMI is over .