People who prefer staying on rent forget the fact that 1. They are losing time to buy a property in a booming area because the land is limited in centre of city 2. Staying on rent after 40 years could be daunting especially if you have a family and constant shifting would be tedious job 3. Landlords can be unpredictable and they can ask you to move anytime out of the house 4. Setting up home again and again with every time one moves from one rental home to other and there are a lot that I can mention but people can suit their choices as I agree that real estate market in Tier-I cities may not be suitable for everyone’s budget and income.
A 2BHK flat even in tier-II cities like Varanasi now costs 60 lakh rupees, where the median income of citizens of the city is 35k, how can they get a loan and even if they get they will be slaves for life for the bank. At the end they will end up paying 1 cr rupees for owning a 60lakh property plus maintenance plus rental yeild of hardly 2-3% and illiquid property
I can pick similar anecdotal incidents in stocks, there are multiple stocks where some perform better while some perform bad but does that mean the entire stock market is crap?similarly, why pick the worst performers among the real estate, there are a lot of good options as well..
@@caravikr - EMI Already itna hota hai ki usme interest include hota hai starting ke years me. simplify your life and mind avoid loans whenever u can for these concrerte cement structures.
I have watch videos from your both channel sir, and I just want to say to all who are reading this comment, sandeep maheshwari, ankur wariko and all other motivational and finacial influencers ko sun ne se lakh guna acha hai ki aap sir ko follow krlo, aaj ke time pe youth and even mature logo ko bhi aisi hi clairty ki need hai, hats off sir
We purchased 3+BHK ground floor house in low rise gated colony of Emrald Hills Golf course Extension Road ,Sector 65 Gurgaon in 2022. Now we are living there. We have an independent house in Prayag Raj.
We are staying at sec-57 near HDFC school and the rent for 3 bhk in ₹60,000 per month. According to me Real Estate is the real investment option. Raja wohi hoga jiske pass Jamin hoga. Aur jo Banda real estate ko oppose karega woh wapas apne gaon mein dikhega.
I pay 14k rent for 2bhk in Bangalore, which is within 10km from my workplace. If I buy similar flat I will end up paying 30k emi for 20 years. Renting is more beneficial and there are other benefits like you can take more risk when you don't have emi, you can switch job often, you have the freedom to move to another city if you get better opportunities.
@@SangoLifeSutras even if you are paying 14k interest to bank(not the principle component ) then also its going into a black hole and just giving you a fake sense of ownership … its the bank’s property and not yours unless you hv the papers
Promoters and directors buying real estate worth 100s of crores do that to offset their capital gains tax from stocks and Esops, which makes it tax free, else they would be paying crores of rupees as tax to the Govt.
Yes, but they do also diversify their portfolio and don't keep all the money invested even in their own companies. Real Estate is a time proven mechanism to build wealth.
I disagree. Real estate is at its peak. People will move to tier 2 or tier 3 cities. Don't fall into this trap. Every one should buy a house but not at the initial stage especially through loan.
@atanubhattacharya5966 there is ample inventory in greater noida i see it too but we have lot of population that is relocating i am seeing almost every builing full which means there are lot of people who are moving in and also there is a lot of people that are earning more now salary of 10lakhs is very normal people will buy property sooner or later which will drive prices up as i was waiting for price collapse but don't see it happening in near term
@@wakinglife7355 Buy some cash flow positive property. For example you can buy 1bhk in sec 137 noida in resale for 30 lac, that will give you 15k rent, which is 6% rental yield, if you take 25 lac loan, emi will be 20k per month, after 3 years, your 15k rent will become 20k. Then in 3 years that property will be cash flow positive. 👍
I am from Mumbai and I dont agree with you.Even big company like TCS is shifting to neighboring Thane. Very big companies are shifting from mumbai, to Navi mumbai and Thane.
There is no guarantee that economy will always keep as functional as it is today. There might be periods of economic crisis where paper assets value maybe be reduced sharply due to very high inflation, hence to hedge that risk hard assets are absolutely necessary. In times of crisis our hard assets is what will save us.
Sir I guess Everything….works on demand and supply…..I don’t think past mai jo population increase hui hai….Uthi speed se population increase hogi….so demand it I speed se nai badhegi
Population jaise jaise increase hogi, new builders new projects introduce karte rahenge because of their bread and butter so new constructions hote rahengi, Dont buy property in hurry.
Never Never believe on any video on youtube.... Each and every one want to gain profit by youtube by increasing viewers and lucrative thumbnails. There are few exception those channels are not monetised by you tube. Take views of everyone and use your mind for final decision. Best of luck RSVP - This video and channel is good. I am not against this channel.
Sir population growth index in India is on decline a typical middle class family is now for 1 - 2 kid ....automation in factory will cause job cuts...why will population migrate when thers no job in big cities
Rich population is more important than large population for high demand and even though population growth is declining it doesn't mean population is declining. For next many decades indian population will be huge with increasing per capita income and more demand specially in big cities.
It's not about population increase or decrease..there is migration of population from villages to cities which will drive the real estate in big cities.
After 2040 all properties price will depreciate, Indias population will start declining from 2040 onwards, all rents and property theory will decline....
Cons of buying: 1. Inferior lifestyle, since you will be paying a huge part of your salary as EMIs. My friends(mostly doctors) who have bought are quite unhappy and feel restricted due to the EMIs.(salary1.4 to 3 lakhs 2. You can't change your neighbors/ society, if you don't like them. There can be intrusive/ noisy/ violent people around you, and you're stuck. 3. I'm not sure if you can sell your place while you're still paying the loan (in case you want to upgrade/ downgrade.) 4. Your building will get old, and you may want to live in a freshly constructed one. 5. You may switch jobs, and your work place may be far away after a few years. 6. You can't take breaks from your job, if your monthly EMIs are in lakhs.(many of my friends work two jobs to be comfortable) 7. You can always move away from the city centre if you want to reduce rent. 8. When you want to buy later in life, you would have more options on the outskirts of the city/ or in nearby satellite cities. For eg- my Delhi friends are buying in Noida/ greater Noida. 9. Unlike the US, our rental yields are extremely small. So you pay way less for a costly property. 10. Real estate laws aren't in favor of the buyer in India. You can get caught in litigations over land, or your flat may never get built. Pros: 1. Leverage- a small EMI can be easily manageable, but that would need a big down payment, or you have to choose a small house. From experience- small EMIs don't hurt, and you build wealth out of it. 2. Diversification. If you have a lot of cash/ financial/ paper assets, it makes sense to buy real estate. 3. settling down in a place, once you're older. 4. A holiday home in a hill station/ near a beach adds much needed luxury to your life. 5. You can reverse mortgage a property if you need cash to invest elsewhere. 6. It is still affordable for the middle class to buy in the city centres right now. May not be so in the future. 7. The rent money actually builds something useful.
Inflationary pressure can be supplemented only by investing in physical assets which have an intrinsic value due to their significance as means of production and limited supply which can't be printed using quantitative easing Stock market is infested with conflict of interest
One should buy property only for self consumption. Real estate as investment is overhyped and is a matter of luck. One home for self use if must, irrespective of the rent vs EMI factor. Go for second home only if second home's cost if maximum 30-35% of your total portfolio. Second home for investment is really bad decision for following reasons : 1. Highly illiquid 2. You put all your eggs in one basket. If project turns out to be good your entire investment will appreciate. If not, entire investment will be doomed. 3. Less scope of diversification 4. Less rental yield 5. Remote management of property is difficult 6. Land is a different scenario but flats depreciate at the end. Initial 15-20 years will look good but afterwards there will be little to no takers.
Buy a second home to diversify your portfolio. Putting all money in equity is not diversification. Buy gold, silver also. Nowadays educated people can easily find a good project. RERA is also helping. Buy a second home to save tax. As per last minute of above video, rupee is depreciating. In fact it is the most depreciating asset. Then why not take loan at the current value of rupee. Rate of inflation is 7% and home loan interest is 8.7%. So effective 1.7% is the charge you are paying. Imagine today’s 50000/- EMI will be a small amount after ten years due to inflation. It will feel very easy to pay 50000/- EMI in future as your income grows. Buy MIVAN housing. These buildings are made of solid concrete without plaster. Life can go up to 100 years. Building looks beautiful due to aluminium mould casting. I have personally designed many such buildings as a structural engineer. When your kid grows up, you may need an extra house. But in future the price will be very high in metros, so the kid will get good support due to the second property you buy today. 30-35% is known to everyone. Nobody will spend 90% salary on EMI. In fact banks will not give second home loan in such cases, so that factor is automatically controlled. Now think, if you don’t buy a second home, you keep putting money in stocks. But after ten years you realise that the stocks you chose have a CAGR of only 10%. You will be in a situation where you neither created wealth nor did you create property.
This time I am not with you. What do you say about the below thumb rule " If the EMI is less than 2 times the rent (even 2.5x), then it is advisable to buy a house."
Right 👍 Big sizes flats or bungalow rent High and High salary needs fullfill by City's then rental income will increase than Taxability increase and demand EV polution free atmosphere must need for increasing in High rent and revolution in real state growth and government taxes. Other wise economi longest slowdown come. Result more problem drink water and food price higher than higher every month.
Buying land requires family and friends supports to keep watch for encroachment. Today nobody has time and network to keep his land safe. So buying land is costly and unmanageable for many people
If you have 70-90% downpayt for a flat or land go for it but if you will have down-payment of 20-30% and remainning amount will be on loan then don't ever think to buy at this time. Loan is a trap you can't came out from it easily. People are having burden of Loan can not take any risk in their career. They will have to do the job till the loan amount ended.
Any thoughts on the commercial properties in gurgaon that have become a liability now. Do you think that black swan event can have an impact on the commercial side as well?
I fully disagree with your views. Real Estate prices are not increasing at that rate. In resale people are selling at below price than what they purchased. Only builder and agents are making money with abnormally high prices. I feel your views are biased towards builder. Most of the people at IT are loosing jobs. Current time is not the right time to enter property market.
You cannot compare your personal situation with others. People in IT and other fields are still working hybrid and enjoying home and office both. This is driving the property market in metros and tier 2 cities.
1.5 cr ka ghar agar aaj lete hain toh 30% rental yield pe 3.75 lakh rental hota hai.. India ki salary pe mujhe nhi lagta kisi tarah possible hai... US me salary high hai toh possible hai... Ek city me average family waalaa 3.75lakh nhi de sakta 30 years baad
Bilkul sahi sir ji I also have a home loan @ 6.7% p.a And now it is around 7.1 % And have advantage of prepayment too so basically I don't have money to buy a flat but it seems to me I will be the owner of that flat in next 5 years and 20 k rent bhi dene se bach gaya... 🥰
@@onceajordancontact the bank and get it reduced. They’ll reduce it to 8.5% by doing some formalities. I did the same recently. Private banks have a bad habit of not reducing the HL interest rate on time, keeping higher interest rates for old customers, just for profits.
Please please help us understand that, renting your house is job you have to scrutinize the party really well. Otherwise your house can be badly confiscated or you can get into trouble and this is a very normal thing in India. What are the ways in which we can actually safely give our house on rent to others can you speak on that?
5-10Y down the line, RE will not be coming the rate which you’re seeing right now as construction material cost is going to get high and labour costs as well.
I agree that people need their own roof over their heads and people should do everything to make it possible, but I felt instead of dissing other RUclipsrs I hoped you would say something concrete the DA, HRA and other metrics you mentioned actually didn't make much sense[because those are always out of touch from reality], in terms of buying a house except getting interest lower than inflation, but that is very temporary in terms of house buying timeline because it is a commitment for life for most people. Hope there would be more ideas/videos for making own house a reality!
Sir in today's dynamic world especially people like us needs to move from one place another in search of better opportunities, so how should we think of buying a house , I worked for 2 years in Bangalore then moved to nagpur then to Hyderabad and now currently working in greater Noida living in a rented 2bhk flat with my two daughters and wife , I really want to own a real estate but due to my lucrative work I simply cannot, but other than real estate I have been actively investing from lst 6 years Any valuable suggestions are welcomed
You could have easily buy a 1BHK in any of this place you lived before and put it on rent and had earned massive rents to pay off installments. You could have easily owned 2 houses in 6 years or time
Just 1 argument since we know homeloan interest is not a fixed one its a revised rate interest so suppose u took at low interest during high inflation time n with in 2 -3 yrs inflation went down n interest went up then how it will benefitted as we all know homeloan is not a short term loan usualy it will start s from 10 yrs trnure to most of us use to take for 20 yrs tenures. Reply will be appreciable.
For an investment made 20 yrs ago, you cannot calculate yield from the date of purchase, the amount Invested has a future value, 8-9 lakhs invested 20 yrs ago will not have 45% yield because Future value of your invested amount will increase
I agree. Indexation of the invested amount has to be considered. Had the money been put in any other asset class(FD, equity or mutual funds) that would also have gone up. So the rental yield would still come out to be ~7-8% in good scenario even when price of property beats inflation every single year.
Apna ghar na hone ki pareshani koi mujhse pooche. Har saal pura grihasti ka samaan utha k shift hote firo. Sb dobara Setting krne me jaan nikal jati h. Makaan malik kabhi bhi khali krne ko bol deta h. Modular kitchen and wall me bani hui almari kabhi nhi milti. Samaan aise he rakho or uski dhool saaf karo roj. Dimag khrab ho chuka h😢
Sorry but shouldn't I compare the cagr of the stock market with the current yield of real estate(3-4%). Agar I am getting more from the stock market on the difference between rent and emi(which comes pretty huge in the initial years), MF seems like a better option. Though totally agree upon your last point on the value of emi decreasing due to inflation.ye logo ko smjhana muskil hota hai kabhi kabhi.
This question he answered in very beginning of the session where he said you will get loan to buy property but you will not get loan to invest in sharemarket....you have to invest like 30-40 years in share market to get your money in crores ....but still you won't be able own house at that time also with rising prices and inflation.....what a trajedy it will be when your ontore future generation won't be able to buy a piece of land on this earth 🌍
If real estate was so lucrative banks would have themselves invested in them rather than disbursing housing loans. It’s not that simple as it seems buying and selling a property. And as an investment when you compare it with stock investment it is no brainer that investment done in stock markets compared to real estate investment with knowledge will yield you far far more returns than real estate. Also, stock market buy sell is way much easier and hassle free vs property transactions plus you missed out on dividends.
Sir I frequently watch your videos and would like have a rental property but someone in our relationship has a property in Mumbai that has been under Bombay rent Control law of 1947. Rents are frozen in that era. Tenants are paying them 50-100Rs where the rent at market rate is about 1.5 lakh. The older generation is now dead. Most of their saving is gone in upkeep of the building which is much higher than the income from property. They managed to buy out one tenant by purchasing a flat for them in the suburbs. This experience has scared the rest of us. With the new generation all in rental and winds of rent control in America that movement can anytime jump ship to India, I’m still reluctant. Is there some way to protect property in case of such laws in future?
It depends upon a personal finance and mentality, point 1. If I have the certainty if any thing happened to me , my family will not be burdened by loan 2. You should earn enough and consider other factors additional to maintain ance.3. if your EMI does not bother you.
For this there is a system called life insurance. In fact, home loan banks ask the person to take a property insurance as a compulsory requirement to take care of uncertainties. Outlook can change, if you explore
Sir, it's a nice video on real estate. But one question always pops up before me, that today if I buy a flat in a high rise building at such inflated rates in Bangalore that too including loan interest. Will I be able to sell it at a profitable price after suppose 15/20 yrs if I want to shift to some other city. Because buyers don't prefer old properties they always prefer newly built up project.
If you want to sell with a profit after 15-20yrs flat is not a good option. It is possible only with a independent house. The difference is you will get more land area in both when compared. Only land price increases with time.
Sir, If house in Kaithal (125 Sq yards) is of 1.0 cr and a person is having that 1.0 cr to buy a house at down payment and bank FD is at 8% (tenure 5 yearS)and person is residing in a house of 250 Sq yards and paying a rent of Rs 11000 and will increase Rs 1000 per year,then what should this person do,he should reside in a rented accomodation or he should buy that house.
Both property prices and rents increase,but one should know at what rate they are increasing. In general property prices increase faster than rental prices because property prices are tradeable while rental prices are not tradeable
If you have nothing better to do with cash then go ahead and buy property. But if you know how to invest in business or shares and know how to rotate money then go for rented accomodation
Do some in fd so you can pay rent. put others in index funds gradually to let them grow and life freely.. where-ever you want. Real estate should not be part of your more than 30 percent portfolio
India is in transition from developing to developed country , maximum country invest in india to get good return in next few years , now catch is here more manufacturing and export by india , india will become more expensive ,either buy property asap either you have to travel more than 30 to 50 km for renting property also that will impact your personal life because most of the time you will spend in metro city traffic .
Hello sir, home loan interest rates are told to be 8% but they turn out to be more than 18% when you do the reverse calculations while closing the loan. No mutual fund or fd can beat this figure. I have taken two loans till date, can share monthly interest calculations if you want. That being said, big fan of yours...kudos for bringing up original content. @sango life.
Your calculations are wrong. 8 is 8 only. Doesnt become 18 percent. Always on reducing basis. U can increase emi. Misconception spread by most . Its like those 2 plus 2 is 5 wale videos.
@@lohitlala7171 he is right Interest rate is 8% but in starting components of interest to principal are 80:20 at least So, do reverse calculations on a excel sheet or online and don’t blindly follow anyone (especially a real estate agent who makes money by selling houses)
@@onceajordan of course you need to pay interest while you are also reaping the appreciation for the money you didn't own actually. Still how does it make interest 18%?
@@onceajordanI don't understand how the interest becomes 18%. Let's say the principal amount is 35 lakhs and the first month emi is annula interest of 35 lakhs divided by 12 plus 20% of that amount. Nobody is stopping us from paying more and reducing the interest. You can pay more and the reduced interest gets accounted in the next revision according to T&Cs. For most banks this is 3 months.
EMI is better in tier one cities like Delhi, gurugram, mumbai, Bangalore but if you thinking renting a property in a remote areas it will give you loss. Buy a land property is better then a flat, because no one gonna buying if after 60 years from you.
In early 2000, My father didn’t buy home in Navi Mumbai thinking the rent is way better than to buy a home. Due which we suffered a lot. Flats were not available later without agents taking 1 or even 2 months commission. His business suffered and we later suffered to our native. We didn’t have money to pay the rent. You should have a permanent house in the city where you are working and planning to live later.
Sir aap bilkul sahi bol rahe hoo. Abhi bangalore mee rents in a decent society are 42-45 k per month for 1200sqft 2 bhk. Unka price in 2018 was aprox 60L
Sir in 2023 now? Economy me rocket laga kya? GDP growth is slowing down. Interest rate are skyrocketing. Rents are same even decreasing in some pockets like Bengaluru.
Sir... dwarka expressway ya new gurgaon like sector 85 .. kahan invest karu.. new gurgaon is a bit cheaper than expressway but has high rental as of now.. future kya h pata nhi .. please help
Today buying home without taking loan from bank, is like a dream or really lucky guy. If we go for loan, we spend our lives paying EMI, at end totally double amount in 20years. By that time we are left with little life few years of age left. This is arrangements for future progeny. Hence just live in RENT.
You did not understand the meaning of what he said in the last one minute of the video. This is the reason why rich people take loans even though they are rich and poor people hate loan even though they are poor.
Sir I am watching your video today, now I am feeling .. I should have watched your video 2 years ago at least.. here in Bangalore Prices or Rent are Sky rocketed...
I have also come across this discussion through my friends. For a moment, I also got confused. But this video had indeed given me a lot of clarity. Thanks a lot guruji 🙂
Mujhe kisi se tarak karna hi nhi hai suno sabki karo apni. Iska yeh bhi matlab nhi hai ki mein unki baat ko samajh ne ki koshish nhi karunga par yeh jan na chahunga unki reasoning sahi ya nhi aur agar sahi nhi hai toh kyu nhi.
Sir aap sirf residence properties ke projects me kaam karte he isliye aap residencies property ko hi best kehte he. Commercial property ko aap kabhi promote nahi karte. Agar kisi businessmen ko commercial property rent me di uska kiraya bhi achha aayenga. Kyuki business me bhi growth to bahut he.
I agree to disagree with you sir .... In india rents will never be like USA ... People are price sensitive here .... Also, its not easy to kick-out the tenants if they are violent people ...
You gotta come to India and understand the situation first hand man! Do not sit in Seattle or San Francisco or New Jersey worrying about violent tenants in India.
सर दस साल पहले खरीदी प्रॉपर्टी की कीमत पर बिना लोन के ब्याज को जोड़े आज की रेंटल इनकम का % निकालना सही नहीं है क्योंकि दस साल पहले इन्वेस्ट किए गए मूलधन पर बैंक का ब्याज भी लगता है प्रॉपर्टी की ग्रोथ आमतौर पर बैंक के ब्याज से ज्यादा होती हैं
आपने आईटीसी कंपनी का शेयर सन २०२० में १६७/- प्रति शेयर दाम में खरीदा। आज आईटीसी हर साल का डिविडेंड १५/- प्रती शेयर देती है। आज आईटीसी का भाव ४६५/- प्रती शेयर है। आपका डिविडेंड परसेंट कितना है कृपया बताए
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People who prefer staying on rent forget the fact that 1. They are losing time to buy a property in a booming area because the land is limited in centre of city 2. Staying on rent after 40 years could be daunting especially if you have a family and constant shifting would be tedious job 3. Landlords can be unpredictable and they can ask you to move anytime out of the house 4. Setting up home again and again with every time one moves from one rental home to other and there are a lot that I can mention but people can suit their choices as I agree that real estate market in Tier-I cities may not be suitable for everyone’s budget and income.
Best option is to buy a house in a place which is cheap to buy a property in low budget and stay on rent in tier 1 - 2 city
Live in Township of 1000s+ flats.
U will shift in another flat but location, size, amenities, benefits, rent will be same.
Thnx me later.
A 2BHK flat even in tier-II cities like Varanasi now costs 60 lakh rupees, where the median income of citizens of the city is 35k, how can they get a loan and even if they get they will be slaves for life for the bank. At the end they will end up paying 1 cr rupees for owning a 60lakh property plus maintenance plus rental yeild of hardly 2-3% and illiquid property
You are right, this is a trap to keep middle class into middle class only
I can pick similar anecdotal incidents in stocks, there are multiple stocks where some perform better while some perform bad but does that mean the entire stock market is crap?similarly, why pick the worst performers among the real estate, there are a lot of good options as well..
Then Buying 1 bhk worth 30 lac will be fine
Through out the life salary badhega rent badhega... EMI nh badhega 😂
@@caravikr - EMI Already itna hota hai ki usme interest include hota hai starting ke years me. simplify your life and mind avoid loans whenever u can for these concrerte cement structures.
I have watch videos from your both channel sir, and I just want to say to all who are reading this comment, sandeep maheshwari, ankur wariko and all other motivational and finacial influencers ko sun ne se lakh guna acha hai ki aap sir ko follow krlo, aaj ke time pe youth and even mature logo ko bhi aisi hi clairty ki need hai, hats off sir
We purchased 3+BHK
ground floor house in low rise gated colony of Emrald Hills Golf course Extension Road ,Sector 65 Gurgaon in 2022.
Now we are living there.
We have an independent house in Prayag Raj.
We are staying at sec-57 near HDFC school and the rent for 3 bhk in ₹60,000 per month.
According to me Real Estate is the real investment option.
Raja wohi hoga jiske pass Jamin hoga.
Aur jo Banda real estate ko oppose karega woh wapas apne gaon mein dikhega.
Nicely said 😹😹😹
Yes
In the last few months, rents in Bengaluru have gone up by 25 to 50%!
Completely addicted to your content. You are so Full of reality.
I pay 14k rent for 2bhk in Bangalore, which is within 10km from my workplace. If I buy similar flat I will end up paying 30k emi for 20 years. Renting is more beneficial and there are other benefits like you can take more risk when you don't have emi, you can switch job often, you have the freedom to move to another city if you get better opportunities.
Thinking rent will remain 14 k is big mistake. Also this 14k is going in black hole. You not getting ownership. Its all interest only.
@@SangoLifeSutras even if you are paying 14k interest to bank(not the principle component ) then also its going into a black hole and just giving you a fake sense of ownership … its the bank’s property and not yours unless you hv the papers
Such a low life living life on rent
Capital appreciation is being ignored too in this calculation.
Getting Ownership is such a real thing.
Only one point which is great
Promoters and directors buying real estate worth 100s of crores do that to offset their capital gains tax from stocks and Esops, which makes it tax free, else they would be paying crores of rupees as tax to the Govt.
Yes, but they do also diversify their portfolio and don't keep all the money invested even in their own companies. Real Estate is a time proven mechanism to build wealth.
I disagree. Real estate is at its peak. People will move to tier 2 or tier 3 cities. Don't fall into this trap. Every one should buy a house but not at the initial stage especially through loan.
@atanubhattacharya5966 i don't feel soon but within 5-10 yrs it will saturate and move down
@atanubhattacharya5966 this is true but there no buyers at escalated prices because rent is cheap but what will happen if rent starts rising
@atanubhattacharya5966 there is ample inventory in greater noida i see it too but we have lot of population that is relocating i am seeing almost every builing full which means there are lot of people who are moving in and also there is a lot of people that are earning more now salary of 10lakhs is very normal people will buy property sooner or later which will drive prices up as i was waiting for price collapse but don't see it happening in near term
@@wakinglife7355 Buy some cash flow positive property. For example you can buy 1bhk in sec 137 noida in resale for 30 lac, that will give you 15k rent, which is 6% rental yield, if you take 25 lac loan, emi will be 20k per month, after 3 years, your 15k rent will become 20k. Then in 3 years that property will be cash flow positive. 👍
@Atanu bhattacharya its because of CORONA
Purchasing under construction property is very risky. Always purchase ready to move whether it is costlier.
How much costlier it would be in percentage?
I am from Mumbai and I dont agree with you.Even big company like TCS is shifting to neighboring Thane. Very big companies are shifting from mumbai, to Navi mumbai and Thane.
There is no guarantee that economy will always keep as functional as it is today. There might be periods of economic crisis where paper assets value maybe be reduced sharply due to very high inflation, hence to hedge that risk hard assets are absolutely necessary.
In times of crisis our hard assets is what will save us.
correct!
Sir I guess Everything….works on demand and supply…..I don’t think past mai jo population increase hui hai….Uthi speed se population increase hogi….so demand it I speed se nai badhegi
Population jaise jaise increase hogi, new builders new projects introduce karte rahenge because of their bread and butter so new constructions hote rahengi, Dont buy property in hurry.
Never Never believe on any video on youtube.... Each and every one want to gain profit by youtube by increasing viewers and lucrative thumbnails. There are few exception those channels are not monetised by you tube. Take views of everyone and use your mind for final decision. Best of luck
RSVP - This video and channel is good. I am not against this channel.
Sir population growth index in India is on decline a typical middle class family is now for 1 - 2 kid ....automation in factory will cause job cuts...why will population migrate when thers no job in big cities
Rich population is more important than large population for high demand and even though population growth is declining it doesn't mean population is declining.
For next many decades indian population will be huge with increasing per capita income and more demand specially in big cities.
It's not about population increase or decrease..there is migration of population from villages to cities which will drive the real estate in big cities.
After 2040 all properties price will depreciate, Indias population will start declining from 2040 onwards, all rents and property theory will decline....
Automation will change the nature of the jobs. People earlier doing manual labour will have to upskill themselves to become operators & technicians.
Cons of buying:
1. Inferior lifestyle, since you will be paying a huge part of your salary as EMIs. My friends(mostly doctors) who have bought are quite unhappy and feel restricted due to the EMIs.(salary1.4 to 3 lakhs
2. You can't change your neighbors/ society, if you don't like them. There can be intrusive/ noisy/ violent people around you, and you're stuck.
3. I'm not sure if you can sell your place while you're still paying the loan (in case you want to upgrade/ downgrade.)
4. Your building will get old, and you may want to live in a freshly constructed one.
5. You may switch jobs, and your work place may be far away after a few years.
6. You can't take breaks from your job, if your monthly EMIs are in lakhs.(many of my friends work two jobs to be comfortable)
7. You can always move away from the city centre if you want to reduce rent.
8. When you want to buy later in life, you would have more options on the outskirts of the city/ or in nearby satellite cities. For eg- my Delhi friends are buying in Noida/ greater Noida.
9. Unlike the US, our rental yields are extremely small. So you pay way less for a costly property.
10. Real estate laws aren't in favor of the buyer in India. You can get caught in litigations over land, or your flat may never get built.
Pros:
1. Leverage- a small EMI can be easily manageable, but that would need a big down payment, or you have to choose a small house.
From experience- small EMIs don't hurt, and you build wealth out of it.
2. Diversification. If you have a lot of cash/ financial/ paper assets, it makes sense to buy real estate.
3. settling down in a place, once you're older.
4. A holiday home in a hill station/ near a beach adds much needed luxury to your life.
5. You can reverse mortgage a property if you need cash to invest elsewhere.
6. It is still affordable for the middle class to buy in the city centres right now. May not be so in the future.
7. The rent money actually builds something useful.
Inflationary pressure can be supplemented only by investing in physical assets which have an intrinsic value due to their significance as means of production and limited supply which can't be printed using quantitative easing
Stock market is infested with conflict of interest
One should buy property only for self consumption. Real estate as investment is overhyped and is a matter of luck.
One home for self use if must, irrespective of the rent vs EMI factor. Go for second home only if second home's cost if maximum 30-35% of your total portfolio.
Second home for investment is really bad decision for following reasons :
1. Highly illiquid
2. You put all your eggs in one basket. If project turns out to be good your entire investment will appreciate. If not, entire investment will be doomed.
3. Less scope of diversification
4. Less rental yield
5. Remote management of property is difficult
6. Land is a different scenario but flats depreciate at the end. Initial 15-20 years will look good but afterwards there will be little to no takers.
Buy a second home to diversify your portfolio.
Putting all money in equity is not diversification.
Buy gold, silver also.
Nowadays educated people can easily find a good project. RERA is also helping.
Buy a second home to save tax.
As per last minute of above video, rupee is depreciating. In fact it is the most depreciating asset. Then why not take loan at the current value of rupee. Rate of inflation is 7% and home loan interest is 8.7%. So effective 1.7% is the charge you are paying.
Imagine today’s 50000/- EMI will be a small amount after ten years due to inflation. It will feel very easy to pay 50000/- EMI in future as your income grows.
Buy MIVAN housing. These buildings are made of solid concrete without plaster. Life can go up to 100 years. Building looks beautiful due to aluminium mould casting. I have personally designed many such buildings as a structural engineer.
When your kid grows up, you may need an extra house. But in future the price will be very high in metros, so the kid will get good support due to the second property you buy today.
30-35% is known to everyone. Nobody will spend 90% salary on EMI. In fact banks will not give second home loan in such cases, so that factor is automatically controlled.
Now think, if you don’t buy a second home, you keep putting money in stocks. But after ten years you realise that the stocks you chose have a CAGR of only 10%. You will be in a situation where you neither created wealth nor did you create property.
This time I am not with you.
What do you say about the below thumb rule
" If the EMI is less than 2 times the rent (even 2.5x), then it is advisable to buy a house."
where did you find this thumb rule
Right 👍 Big sizes flats or bungalow rent High and High salary needs fullfill by City's then rental income will increase than Taxability increase and demand EV polution free atmosphere must need for increasing in High rent and revolution in real state growth and government taxes. Other wise economi longest slowdown come. Result more problem drink water and food price higher than higher every month.
Buying land is better than buying flat for good appreciation
Yes, I bought 1 bigha land in 6 lac rs now its price is 30 lac rs in 5 yrs
Buying land requires family and friends supports to keep watch for encroachment.
Today nobody has time and network to keep his land safe. So buying land is costly and unmanageable for many people
Sir..what about liquidity..if you commit to buy a house..yr liquidity is gone..it is easy to buy a property but very difficult to sale
It will be even more difficult to buy ten years from now unless you are staying 100 kms away from
CBD
If you have 70-90% downpayt for a flat or land go for it but if you will have down-payment of 20-30% and remainning amount will be on loan then don't ever think to buy at this time. Loan is a trap you can't came out from it easily. People are having burden of Loan can not take any risk in their career. They will have to do the job till the loan amount ended.
Ten times
Watch the last minute of above video.
I hope you will understand at least 10th time.
Property is good investment but place and location matters.
सही है लेकिन मकानमालिक हर ११ महिने मे रेंट तो बढाते ही हैं और उपर से परेशान भी करते हैं ..और हर बार नया घर ढूंढो ...ऐसा भी होता है
Instead of buying home for rental yield, not fd but index fund SIP can be a good option
Don't buy home always buy land
Sahi baat sir.
Any thoughts on the commercial properties in gurgaon that have become a liability now. Do you think that black swan event can have an impact on the commercial side as well?
Already gross oversupply
Gajab ho Sir Aap, much appreciated
I fully disagree with your views. Real Estate prices are not increasing at that rate. In resale people are selling at below price than what they purchased. Only builder and agents are making money with abnormally high prices. I feel your views are biased towards builder. Most of the people at IT are loosing jobs. Current time is not the right time to enter property market.
Quite the opposite check the avg salaries,rent has been stagnant but will not be for long as a sponge it's bound to suck your salary
Say something now
You cannot compare your personal situation with others. People in IT and other fields are still working hybrid and enjoying home and office both. This is driving the property market in metros and tier 2 cities.
1.5 cr ka ghar agar aaj lete hain toh 30% rental yield pe 3.75 lakh rental hota hai.. India ki salary pe mujhe nhi lagta kisi tarah possible hai... US me salary high hai toh possible hai... Ek city me average family waalaa 3.75lakh nhi de sakta 30 years baad
Can you make a video on if we shd buy Commercial office space or not? If we already have and cannot rent shall we keep it and buy flat?
Sir not agreed. Jab ghar 8 ya 9 lakh ka tha tan salaries kya thi aj mehnga hai to salaries kya hai?
Exactly
Bilkul sahi sir ji
I also have a home loan @ 6.7% p.a
And now it is around 7.1 %
And have advantage of prepayment too so basically I don't have money to buy a flat but it seems to me I will be the owner of that flat in next 5 years and 20 k rent bhi dene se bach gaya... 🥰
Now it is 9%? :)
Which bank
@@onceajordan
Hdfc 8.5%
@@krishna_raj9331 i have hdfc HL running at 9.25 now! It started at 6.85 in 2021
@@onceajordancontact the bank and get it reduced. They’ll reduce it to 8.5% by doing some formalities. I did the same recently. Private banks have a bad habit of not reducing the HL interest rate on time, keeping higher interest rates for old customers, just for profits.
Very much true in 2023... Baten sach niklin as always. 😊
Please please help us understand that, renting your house is job you have to scrutinize the party really well. Otherwise your house can be badly confiscated or you can get into trouble and this is a very normal thing in India. What are the ways in which we can actually safely give our house on rent to others can you speak on that?
5-10Y down the line, RE will not be coming the rate which you’re seeing right now as construction material cost is going to get high and labour costs as well.
I agree that people need their own roof over their heads and people should do everything to make it possible, but I felt instead of dissing other RUclipsrs I hoped you would say something concrete the DA, HRA and other metrics you mentioned actually didn't make much sense[because those are always out of touch from reality], in terms of buying a house except getting interest lower than inflation, but that is very temporary in terms of house buying timeline because it is a commitment for life for most people. Hope there would be more ideas/videos for making own house a reality!
Sir in today's dynamic world especially people like us needs to move from one place another in search of better opportunities, so how should we think of buying a house , I worked for 2 years in Bangalore then moved to nagpur then to Hyderabad and now currently working in greater Noida living in a rented 2bhk flat with my two daughters and wife , I really want to own a real estate but due to my lucrative work I simply cannot, but other than real estate I have been actively investing from lst 6 years
Any valuable suggestions are welcomed
You could have easily buy a 1BHK in any of this place you lived before and put it on rent and had earned massive rents to pay off installments. You could have easily owned 2 houses in 6 years or time
Sari cities ke ek dam centre me Lelo madhya Pradesh 😂
"lucrative work"......ha ha ha
Aap ke liye Ghar kharidna thik hai hi nehi you should always rent
Buy in one of the top ten cities that you feel you may retire.
Finally some real logic on this topic 👏🏻👍🏻
Delhi shadipur mae 75 gaj ka flat 29 lakh mae mil rha hae uska kirya 18 hazar milta hae ,,, should I buy this flat
Wow🤩😍 what perspective man.
Just 1 argument since we know homeloan interest is not a fixed one its a revised rate interest so suppose u took at low interest during high inflation time n with in 2 -3 yrs inflation went down n interest went up then how it will benefitted as we all know homeloan is not a short term loan usualy it will start s from 10 yrs trnure to most of us use to take for 20 yrs tenures. Reply will be appreciable.
Sahi question
Inflation aapne kab down jata dekh lea
For an investment made 20 yrs ago, you cannot calculate yield from the date of purchase, the amount Invested has a future value, 8-9 lakhs invested 20 yrs ago will not have 45% yield because Future value of your invested amount will increase
Elaborate??
I agree. Indexation of the invested amount has to be considered. Had the money been put in any other asset class(FD, equity or mutual funds) that would also have gone up. So the rental yield would still come out to be ~7-8% in good scenario even when price of property beats inflation every single year.
Ankur Warikoo syndrome
Apna ghar na hone ki pareshani koi mujhse pooche. Har saal pura grihasti ka samaan utha k shift hote firo. Sb dobara Setting krne me jaan nikal jati h. Makaan malik kabhi bhi khali krne ko bol deta h. Modular kitchen and wall me bani hui almari kabhi nhi milti. Samaan aise he rakho or uski dhool saaf karo roj. Dimag khrab ho chuka h😢
Are par FD mein kaun daalega? Koi youtuber ye suggest nahi karta. Index fund mein daaloge na, jis pe kam se kam 12% milta hai.
Sorry but shouldn't I compare the cagr of the stock market with the current yield of real estate(3-4%). Agar I am getting more from the stock market on the difference between rent and emi(which comes pretty huge in the initial years), MF seems like a better option.
Though totally agree upon your last point on the value of emi decreasing due to inflation.ye logo ko smjhana muskil hota hai kabhi kabhi.
This question he answered in very beginning of the session where he said you will get loan to buy property but you will not get loan to invest in sharemarket....you have to invest like 30-40 years in share market to get your money in crores ....but still you won't be able own house at that time also with rising prices and inflation.....what a trajedy it will be when your ontore future generation won't be able to buy a piece of land on this earth 🌍
If real estate was so lucrative banks would have themselves invested in them rather than disbursing housing loans. It’s not that simple as it seems buying and selling a property. And as an investment when you compare it with stock investment it is no brainer that investment done in stock markets compared to real estate investment with knowledge will yield you far far more returns than real estate. Also, stock market buy sell is way much easier and hassle free vs property transactions plus you missed out on dividends.
as your equity investments reach a particular level, you will start thinking of other avenues to put further wind falls.
Ghar rahne ke liye khareedna hai ki rental Income ke liye Lena hai. 1hi flat afford kar sakte hai to usme rahe yaa rent per Dede?
Ghar mat kharido land kharido. Ghar khud bana lena.
Any suggestions on good affordable project?
Sir I frequently watch your videos and would like have a rental property but someone in our relationship has a property in Mumbai that has been under Bombay rent Control law of 1947. Rents are frozen in that era. Tenants are paying them 50-100Rs where the rent at market rate is about 1.5 lakh. The older generation is now dead. Most of their saving is gone in upkeep of the building which is much higher than the income from property. They managed to buy out one tenant by purchasing a flat for them in the suburbs. This experience has scared the rest of us. With the new generation all in rental and winds of rent control in America that movement can anytime jump ship to India, I’m still reluctant. Is there some way to protect property in case of such laws in future?
This was very very old time. Now these things exists only in old areas.
Still happens in lot of places, lot of tenants don't agree to leave.
It is impossible. Builder lobby will never allow such a law.
It depends upon a personal finance and mentality, point 1. If I have the certainty if any thing happened to me , my family will not be burdened by loan 2. You should earn enough and consider other factors additional to maintain ance.3. if your EMI does not bother you.
For this there is a system called life insurance. In fact, home loan banks ask the person to take a property insurance as a compulsory requirement to take care of uncertainties.
Outlook can change, if you explore
Sir, it's a nice video on real estate.
But one question always pops up before me, that today if I buy a flat in a high rise building at such inflated rates in Bangalore that too including loan interest.
Will I be able to sell it at a profitable price after suppose 15/20 yrs if I want to shift to some other city.
Because buyers don't prefer old properties they always prefer newly built up project.
If you want to sell with a profit after 15-20yrs flat is not a good option. It is possible only with a independent house. The difference is you will get more land area in both when compared. Only land price increases with time.
You are right. House can’t be sold easily and you cannot expect same amount as a new builder floor.
I am listening in 2024. It's correct that rents have gone way higher. It's a regular income which gives satisfaction every month
I am govt employe class 3rd 23 year service ho gyi mai 8000/- rent de rha hu muzhe house rent 500/- five hundred per month mil rha hai 🙏🏿
Sir, If house in Kaithal (125 Sq yards) is of 1.0 cr and a person is having that 1.0 cr to buy a house at down payment and bank FD is at 8% (tenure 5 yearS)and person is residing in a house of 250 Sq yards and paying a rent of Rs 11000 and will increase Rs 1000 per year,then what should this person do,he should reside in a rented accomodation or he should buy that house.
Both property prices and rents increase,but one should know at what rate they are increasing.
In general property prices increase faster than rental prices because property prices are tradeable while rental prices are not tradeable
If you have nothing better to do with cash then go ahead and buy property.
But if you know how to invest in business or shares and know how to rotate money then go for rented accomodation
Do some in fd so you can pay rent. put others in index funds gradually to let them grow and life freely.. where-ever you want. Real estate should not be part of your more than 30 percent portfolio
India is in transition from developing to developed country , maximum country invest in india to get good return in next few years , now catch is here more manufacturing and export by india , india will become more expensive ,either buy property asap either you have to travel more than 30 to 50 km for renting property also that will impact your personal life because most of the time you will spend in metro city traffic .
Sir, Agar land hai to kya karna hai ?
Hello sir, home loan interest rates are told to be 8% but they turn out to be more than 18% when you do the reverse calculations while closing the loan. No mutual fund or fd can beat this figure. I have taken two loans till date, can share monthly interest calculations if you want. That being said, big fan of yours...kudos for bringing up original content. @sango life.
Your calculations are wrong. 8 is 8 only. Doesnt become 18 percent. Always on reducing basis. U can increase emi.
Misconception spread by most .
Its like those 2 plus 2 is 5 wale videos.
Bhai tum toh lut Gaye. For me 8 percent I 8 percent only.
@@lohitlala7171 he is right
Interest rate is 8% but in starting components of interest to principal are 80:20 at least
So, do reverse calculations on a excel sheet or online and don’t blindly follow anyone (especially a real estate agent who makes money by selling houses)
@@onceajordan of course you need to pay interest while you are also reaping the appreciation for the money you didn't own actually.
Still how does it make interest 18%?
@@onceajordanI don't understand how the interest becomes 18%. Let's say the principal amount is 35 lakhs and the first month emi is annula interest of 35 lakhs divided by 12 plus 20% of that amount. Nobody is stopping us from paying more and reducing the interest. You can pay more and the reduced interest gets accounted in the next revision according to T&Cs. For most banks this is 3 months.
EMI is better in tier one cities like Delhi, gurugram, mumbai, Bangalore but if you thinking renting a property in a remote areas it will give you loss.
Buy a land property is better then a flat, because no one gonna buying if after 60 years from you.
In early 2000, My father didn’t buy home in Navi Mumbai thinking the rent is way better than to buy a home.
Due which we suffered a lot.
Flats were not available later without agents taking 1 or even 2 months commission. His business suffered and we later suffered to our native.
We didn’t have money to pay the rent.
You should have a permanent house in the city where you are working and planning to live later.
Shall we invest on a land or on a build up house to get a better return?
land n build urself....buildup rate 1200-1500/sqft...for average ppl
Ye last wala ek dam mast point tha ... ek line mai samjh aa gaya ..
bhaut log ghoom jayege ye baat samjhne mai. 😂😂
Sir kya 2 bhk flat at mathura refinary 20 lac me mil raha hai le lu kya pls 🙏 reply me
Sir aap bilkul sahi bol rahe hoo. Abhi bangalore mee rents in a decent society are 42-45 k per month for 1200sqft 2 bhk. Unka price in 2018 was aprox 60L
Apna ghar ho aur jo sukoon milta hai vo rent ke makan me nahi milega
Sir in 2023 now? Economy me rocket laga kya? GDP growth is slowing down. Interest rate are skyrocketing. Rents are same even decreasing in some pockets like Bengaluru.
Hello sir big fan of you, aapki saari videos dekhta hu, Sir ek video kundli , Sonipat wali belt pe bi banao👍
Will make.
Sir... dwarka expressway ya new gurgaon like sector 85 .. kahan invest karu.. new gurgaon is a bit cheaper than expressway but has high rental as of now.. future kya h pata nhi .. please help
Today buying home without taking loan from bank, is like a dream or really lucky guy.
If we go for loan, we spend our lives paying EMI, at end totally double amount in 20years.
By that time we are left with little life few years of age left.
This is arrangements for future progeny.
Hence just live in RENT.
You did not understand the meaning of what he said in the last one minute of the video. This is the reason why rich people take loans even though they are rich and poor people hate loan even though they are poor.
Sir hamne 2012 me rajnigandha me ghar book karaya tha pri chouk noida me pr vo builder hee bhag gya. Kya hame hamara ghar milega vapas?
Sir you where correct, rent has sky rocketed in Bengaluru, can we still buy 2bhk?
If I rent out my commercial space and complex owner create problems in using washroom then what should I do?
Inflation (8)onek beshi interest(6) rate er theke...
I have a shop 10×10 ,on road side , how much rent should i charge......plz reply
Go check similar shop rent in your neighbourhood
Sir please share saving tips whether in gold or fds or sip. Thanks.
2023 m sahi m rocket lg gya rent m aur property rate m
Sir mujhe rent pe dene keliye apartment banana tha, 6 flat apartment iskeliye mujhe home loa milega kya? sir pls help me
Property is all about location. Rental income is overrated unless you run something like PG.
Sir I am watching your video today, now I am feeling .. I should have watched your video 2 years ago at least.. here in Bangalore Prices or Rent are Sky rocketed...
I have also come across this discussion through my friends. For a moment, I also got confused. But this video had indeed given me a lot of clarity.
Thanks a lot guruji 🙂
Kya ab Sector 56 ka CGHS buy karna chaiye ??
Suppose we already have a house in the city, then what is better rent or buying
Mujhe kisi se tarak karna hi nhi hai suno sabki karo apni. Iska yeh bhi matlab nhi hai ki mein unki baat ko samajh ne ki koshish nhi karunga par yeh jan na chahunga unki reasoning sahi ya nhi aur agar sahi nhi hai toh kyu nhi.
Sir today if a person has a 1cr budget which is the best property to buy now for end use.... Plz suggest
Commercial
@@soniyasomani1154 explain a bit more.
Commercial that too in Zirakpur belt. You can revert back if interested.
Im into real estate.
यह बहुत सही कहा.... 👏👏👏
FD are used to take loan 1 percent more than what you are earning
ye sach hogaya... rent sach main badh gaya hai
Sir mumbai me 50,60 lakh ki shop liya to kitna rent mil sakta hai
Sir ji sector 110 A gurgaun me 100 gaj ka plot kaisa rahega
Sir aap sirf residence properties ke projects me kaam karte he isliye aap residencies property ko hi best kehte he. Commercial property ko aap kabhi promote nahi karte. Agar kisi businessmen ko commercial property rent me di uska kiraya bhi achha aayenga. Kyuki business me bhi growth to bahut he.
Ye bataiye sir accha flat kaha aur kaise dekhein
2023 main rocket lag gya sir rent pe as your predicted❤
bahut badi baat aapne kaha
I agree to disagree with you sir .... In india rents will never be like USA ... People are price sensitive here .... Also, its not easy to kick-out the tenants if they are violent people ...
You gotta come to India and understand the situation first hand man!
Do not sit in Seattle or San Francisco or New Jersey worrying about violent tenants in India.
🙏Well said sir ji
सर दस साल पहले खरीदी प्रॉपर्टी की कीमत पर बिना लोन के ब्याज को जोड़े आज की रेंटल इनकम का % निकालना सही नहीं है क्योंकि दस साल पहले इन्वेस्ट किए गए मूलधन पर बैंक का ब्याज भी लगता है प्रॉपर्टी की ग्रोथ आमतौर पर बैंक के ब्याज से ज्यादा होती हैं
पुरानी प्रॉपर्टी का दाम दुग्गना कर लो, ब्याज का हिसाब जोड़ने हेतू।
फिर भी रेंटल यील्ड ज़्यादा ही आयेगी
Aaj ki value se flat ya kisi bhi property ka rent property value ka 2 se 3 % muskil se milta he
आपने आईटीसी कंपनी का शेयर सन २०२० में १६७/- प्रति शेयर दाम में खरीदा।
आज आईटीसी हर साल का डिविडेंड १५/- प्रती शेयर देती है।
आज आईटीसी का भाव ४६५/- प्रती शेयर है।
आपका डिविडेंड परसेंट कितना है कृपया बताए
Or sbse badi Chiz FD me cash wala paisa nahi rakh skte 😊