NEVER buy a flat for EARNING RENTAL INCOME | Beware of Bad Home Loans 

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

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.

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.

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

😂😂😂

Kitne paise latak Gaye 😂

real state se achha kuchh nhi

found the real estate dalal

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??

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.

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

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 RU-vid 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'

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 😁

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.

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

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.

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.

Rental income is good in pockets , time of your purchase and demand in locality based on migration from surrounding villages

So taking your own words where do you see "low value apartment" for rental income purpose

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.

Exactly bro. I commented the same thing in comment box

Of course it's averaged out for simplification.

That 1 Cr in mutual fund with 15-20% return for 20 years …..

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.

What about inflation....price would be same

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

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

😂😂