31/10/2013
WHY TO INVEST IN RESIDENTIAL PROPERTY, LET’S SEE THE EXAMPLE:
Lets take the value of Flat as Rs.50,00,000/-.
Own money (20%)- Rs.10,00,000/-
Finance money (80%)- Rs.40,00,000/-
Rental value of this property- Rs.15,000 per month (appreciating 8% year on year)
If we analyse Rent (alongwith income tax benefit) v/s flat installment, we would conclude that initially investor has to finance Rs.21,000 per month from his pocket, which goes on reducing year on year. At the end of 12th year, property starts giving net positive income (means virtually debt free).
After 20 years, property will be worth Rs.5.0 Crore (assuming 12% appreciation year on year). If we analyse calculation for last 20 years, we will find that property has appreciated at the rate of 15% per annum.
Therefore start investing in property at the earliest.
Apartments - For Sale for sale - Flat is at excellent location of I P Extension. Balco Market and Bus Depot is nearby.