6. A builder constructs a flat for 350,00,000 Due to recession, its value depreciates by 20% in 2 years.
What value does he get, if he sells this house after 2 years.
Answers
Step-by-step explanation:
- Secondly, even if it values so. I doubt how many buyers will be interested in a property ageing 20 years for 2 crores.
- We are predicting 20yrs hence. Wasting / suffering our today for future. That too a long term future, we have never seen.
-With the rising suicide rate world-wide, who knows something unfortunate happens at our floor and you will end up selling it at a lower price.
-With the heavy infrastructure development in Bangalore on few lakes for water, I am certain of water shortage in coming years.
Buying a house is a emotional decision. What I mean is, even if the house is worth 5 crores tomorrow. House owner will never ever think of selling to book a profit of it to enjoy his life. It's worst that we just boast of investments and businesses but are emotional at heart.
Let's talk about rented flat.
If you take the same flat on rent or say next door flat, at present rent for 2 BHK is Rs 14,000 all other things including.
- Assuming rent increase at 10% (very unlikely it will be less). Year on year you will pay rent approximately 1.44L, 1.58 L, or 1.74 L , at 20th year you will be paying 1.44 X 1.1^(20-1)= 8.8L
Total rent you will pay = 1.44((1-(1.1)^20)/(1-(1.1)) = 82L
Benefits:
1. You can change home any time, even for small reason like neighbor's wife is hitting on you (I will not leave in that case: P )
2. Better job in Bangalore or US or Mumbai (I just love it... am dreaming of getting a job in Silicon Valley or Wanna to sit in a office near some lake :))
3. Better Job in slightly far off location (do you want to manage the traffic in case you buy the flat in city center? )
4. Growing family need a 3 BHK. (Think of future need also) or villa.
5. As your rent grows so will you HRA so more tax benefit? - Apparently rent receipts have more benefit in taxes than a Housing loan
6. A new cosmopolitan area is coming up in the city which is better than where you stay now ( can shift anytime)
7. If you move out of the city, finding a tenant is a problem. A tenant who may convert your dream home into filthy home (sounds scary right?)
Etc.
So what should you do?
Now if you are smart enough you will put some money in equity or SIP Because you are paying only 14,000 rent and not 60,000 EMI.
Assuming you put 25000 Rs in investment for 20 years at an annual return of 15 % or 1.2% a month (buy plot in tier 2 cities, Mutual fund, SIP, Bank FD, PPF) you can reduce the investment amount as your rent increase. Still by our personal calculations, you can make anything between 3-5 Cr after 20 years \U0001f609 depending on your Smartness.
Then you can purchase the above flat as second home for your kids and spent some money on cleaning it up :)
Moreover, after 20 years you will be sure enough where you want to settle down and hence making an investment after 20 years sounds wiser than investing now in flat. This is the time to enjoy your life to the fullest, doing mistake, learning from it, going on an adventurous trip, checking out bucket list and list goes on and these all will be possible only if you're not under a heavy loans. I agree that your salary will also increase which you may use a counter to this article but by the time it will increase enough that you can do anything, you would have reached an age of 40 and you won't feel like enjoying anymore at 40. (exceptions exist)
Decision is yours and you get to live once. So, make a wise decision.Assume there is a 2 BHK Flat for sale at a decent location. Considering the cost of the flat between 60L to 80L. Assuming 70L as a total cost of the flat. Banks will give you not more than 85% of total cost amount which doesn't even include local taxes from certain banks. Assuming you have taken a loan for 20 years. Here is the calculation.
Base payment 15 % = 10.5L (this will rip you off with
Answer:
we can found it by Si or Ci
.principal =35000000
time=2
rate=20%
simple interest= principal*rate*time/100
so,
simple interest=35000000*20*2/100=14000000
simple interest=1,40,00,000
ok now
thank you Very much