I am totally tired of influencers telling don't buy a home!!! In those 10 years, he could have earned nearly 2 crore, but the property price will be doubled as well. Even if its less, for roughly a 1 cr property you will be paying 30000 rent per month from first day which will keep on increasing, even if we take nearly 7% increase per year you will end up paying nearly 50 lac rent for 10 years. And inflation and hassle of moving every two years. And you need to customisation at home, you can't because you are renting it. And society rules are different for tenants and owners. House is not an investment its a necessity.
Buying One simple house to live is an absolute necessity. But there are people buying 2nd home that too apartments as an investment on enormous EMI. I feel that's not the right thing to do.
Finance with sharan : *"why nobody teaches this at school?"* Me : *"because this is half knowledge without considering other factors and the returns logic is based on assumptions. If they teach this in school , students would end up bankrupting themselves and probably their parents"* 🤣🤣🤣
1. You will still be paying rent 2. When you purchase house after 15 years price will be equal to your SIP + Rent paid 3. Most important part is : you don’t own house for 10+ years and your relatives will be laughing at you 😅
Aaj barish hori hai Kumar ji lucky salman is not driving car India defeated Pakistan in cricket Kumar ji srill lucky salman is not driving a car so obsessed
what about tax benefit on interest on home loan? price appreciation on property? rental income if not residing on property? i like your videos but half knowledge is more dangerous for people.
One thing being overlooked. A home that costs 1 crore 10 years back will cost like 5-6 crores 10 years later because of inflation and real estate prices going up. Like luxury 5BHK house rent was just 8k 10 years back. Now 1BHK flat rent like 15k. That's a good indication of inflation and real-estate prices going up.
Depends on the place. Rent for my kind of 2bhk in Delhi 15-17 k 10 years back. It is 15-20 k now. I can also rent a floor with this much. 1cr can easily get you 3-4 bhk in Noida/ ghaziabad, and a 2-3 bhk in Delhi.
Hi. I have 2 concerns. 1. Inflation in the property prices. 2. Have you taken the tax we would have to pay on withdrawing the SIP money while buying the house.
I think there is some scam running behind all financial advisors not recommended to buy home. Please don’t follow this. SIP are subjected to high risk. Some times you will burn out with 20% money you put there.
I believe the concept is the other way around; to eliminate the paying interest to the banks, ~0.12% of the loan amount should be a SIP for 20yrs and verify the estimations. Cheers 🙌
Not only inflation. Many things are not taken into account. 1. Rent or Hotel charges :P 2. The Tax excemption on Loans. 3. Availability of property. So finance with sharan is not so fiiiinancial. Lol
In Punjab the sand prices have reached an all-time high of Rs.12000 per 100 sq. ft. Compared to three years back, it was about Rs.1800 for the same amount. Now add to that land value appreciation, cost of raw materials and other inputs. The value of the current house would have increased. Now add to that the amount of money you will spend on rent etc, waiting for buying the house.... Waiting doesn't look so good now does it?? Instead if you prepay (whatever u can) the home loan for first two years when the interest portion is the highest. You end up saving a lot on interest.
The worst decision one can ever make is not to buy a house as soon as posible. Buyin a hous with a HL is much better a decision than not buying and doing sip for 10 years .
For all those who are pointing at inflation of property prices.. its negligible.. property prices are rising just 3-4% yearly and in some cities even dropping too.. and for rent aspect.. rent is too cheap in many cities compared to owning
In 10 years not only price will increase but you will have to pay extra rent for 10 years ....counting in both inflation and rent...it's generally not worth delaying 10 years especially if property price can boom in a growing area
The doubling time of rent at a 7% annual increase is approximately 10.24 years. This means that if your rent is \$1000 today, it will double to \$2000 in 10.24 years. The doubling time of the property price at a 7% annual increase is also approximately 10.24 years. This means that if your property is worth \$100,000 today, it will double in value to \$200,000 in 10.24 years. However, it is important to note that these are just estimates. The actual doubling time of rent or property prices may vary depending on a number of factors, such as the overall state of the economy, the local housing market, and the condition of your property. It is also important to remember that rent and property prices can go down as well as up. So, while it is possible that your property will double in value in 10.24 years, there is also no guarantee that this will happen.
The easiest way is to rent in the main city, and consider buying in a satellite City. For eg, rent in Delhi would be 15-20 k for a decent 2-3 bhk. A good house in South Delhi would cost you 5cr. You could get a flat in Noida -ghaziabad for 50lakhs to 1 cr. And the longer you delay, the lesser loan you will have to take. Real estate may appreciate, but you can always pick a flat in another location. Say, ghaziabad, instead of Delhi. So invest the rest, and buy a flat at the place of your choice after a decade or two. You would have a better idea by then about the places you would like to settle down at.
As we long seen in childhood there is flat cost in zopadpatti nearly 13 lacs Now its becomes around above 45 lacs. And in well developed buildings there is around 30 lacs that costs around more than 1.5 crores.
In 10 years, he saved Taxes related to Home Loan EMIs, enjoyed at his own home and created memories, prices would have increased in these 10 years, paid rent for these 10 years, ...
This is based on the assumption that real estate growth is lesser than the mutual fund, which could be the case but if we account historical growth difference between real estate and MF , and the tax benefits associated with home loans, buying or leasing doesn't make much financial difference.
Price will only increase if demand is more and supply is less and houses are expensive so most of the people rent it increasing the supply so this could actually help
We live a max 70 years out of which 20 years is for study. So u have around 50 years…. Even 10 years waiting is a huge deal… just enjoy every second of your life worth living. All these scenarios are for middle class guys and gals and they always have a dream to keep their parents in a more sustainable house and not in those rented places. Moreover hour prices are going up 5 times in 10 years…
Best advise: take a home… hire a good interior designer and do some good designing … resell the home at 1.5x to 2x the price you bought. Atleast 30% returns. After clearing loans, paying taxes and all.
So i calculated my purchase. In this i hav considered Lumpsum and SIP in Nifty Property price inflation Found no difference in EMI despite of investment in Nifty, because of property price inflation. Also if i calculate the rent paid then situation will became worse. Conclusion - the first principle is to buy property when price is low, dont wait for inflation.
the 1 crore Apartment will be 2 crores by the time of purchase. But we also need to keep in mind that we’ll end up paying almost 2 crore by the time we end our interest (80000x240) but you’ll be owning your house sooner. But if it’s an individual house, it will be 3 crore because individual house’s appreciation would be more. Also people who already own a property to Live in should take this decision, because there’s no point in paying Huge rents, staying in rented houses (not feeling like it’s own home). This decision is suitable to more privileged people.
Assuming you live on the streets for 10 years, expecting the market will behave the same way it did in the last 10 years, assuming the house rates stay stagnant for 10 years what you said would be possible
If a house costed Rs 1 crore 10 years ago, then What would be the estimated cost of a house now? I want to understand if real estate rates are lagging behind mutual funds!
You have to minus the rent for 10 years in that 80k SIP. So you cannot accumulate that much money in 10 years. It would go closer to 13-15 years or may be more. People either pay rent or EMI. Please take into account that as well.
I don't know why nobody wants to talk about interest repayment for Home loans. If the EMI is to be paid for the whole 20yrs, then one would end up paying interest almost the same amount as the principal. Is it really worth paying all that money on a house which you don't even know will appreciate to that value in the future?
The house will appreciate in value if you bought early. If he waited ten years he have ten less years enjoying the home. He can always increase his income and overpay to reduce interest burden.
Just answer 2 things 1- Jo 10 saal wo rent pe rhega uska rent kha se aayega kyuki uske paas ghar nhi hai 2- what about the house prices Jo 10 saal mein 2-3 times hojate
Comedy thing is here we talk about sip.. I have been doing sip from past 3 years and return is 0%.. it's like having another saving account with 0 interest 🤣🤣
Why should we purchase a house for 2 crore outright? If we continue to invest the same 2 crore and receive an approximate return of even 10%, we would earn 20 lakhs per year. The monthly EMI is only 80,000 (9.6 lakhs annually), allowing us to save 10.4 lakhs per year. This amount can be reinvested, and our principal remains secure.
The house he bought of worth 1 cr is now 3 cr He paid coz he could . Investing each month the same amount is not practical coz of uncertainties. Plus he has been living in the same house for past 10 years means no rents paid . Also consider that the second man paid huge rents . And in remaining 10 years the house will be some 10 crores and during This 20 year period his emi remained the same but his salary rose manifolds . Consider that .
For those who think Sharan is wrong here might consider this... 1. For a 1 Cr loan at about 9% you end up paying about 2.2 Cr in 20 years 2. An 80k SIP at 12% would grow to about 1.9 Cr in 10 years 3. Assuming Real Estate inflation of 5% the price of a 1 Cr house today would be about 1.5 Cr So in 10yrs you have a house plus no Loan.. Thats still about twice as fast.
Why use the accumulated wealth for full cash purchase, when one can get a home loan at around 7% interest and keep the accumulated wealth invested to earn 12% the way you mentioned ?
That 7% is already up to 8.5% and will only increase in these market conditions. Don't be surprised if your home loan rates go above 10% too. The RBI will be hiking rates hard for the next 2yrs.
Even 10% is lesser than 12% ! Isn’t it ? And I mentioned 12% returns on the conservative side itself. Btw I was talking about fixed rate of interest home loan.