Most of the Govt.Servants can not afford for a second house . Let us wait and watch how much salary is being increased in the 6th pay commission so that we can dream for it.
RE:second house
by ABC on Feb 18, 2007 01:50 PM Permalink
The truth is that there is big gap between what is projected(growth story) and the reality. Only a section(may be 10-15%) of india is included in the growth story. this is for them and they will be reading this article for sure..
If you see the flat is owned in year Jan 2005 when the rates were fairly normal in pune. at that time he would be getting the rent in the range of 4-5 thousand. But now the cost of that flat is in the range of 30 lacks and owner can get the rent of 12 to 13 thousand in pune.
The best rent you can get is 0.5% per month of your investment. Investing in a second residential property is not a good idea. This idea is like to pay one credit card bill use another card and for the second card use third and so on. If you have money invest in land.
I do not agree with the article where EMI will be equal to the rent. I have a house in Tier II city where the cost is 13.5 lakhs. EMI is Rs.13,000/-. But the rent is only Rs.3250. In places where you get rent as Rs.13,000/- the cost of the hour will be around Rs.50 to 60 laksh where the EMI will be Rs.40,000 .
some of the readers are generally making statements. iam from Trivandrum and even here you have rent ranging from 10-15000 in some of the apartments .Real Estate is on the boom and what ever you invest in property is worth. If you plan carefully and if you some money in ur pocket its worth doing the smae
RE:Common readers
by Czar X on Feb 09, 2007 05:02 PM Permalink
Hope you are not one of those readers who are "generally making statements". Getting the rent to fund the EMI is a good bet, but it cannot always happen.
Even in a place like Madras, I pay an EMI of close to 10K but the rent I get is only 5,000. If I am greedy, I can perhaps get a nother 1000 more!
I have 2nd home - i paid 2 L downpayment 2 Lac is loan for which EMI is 2700 and i get only 1200 rent. Deposit is 12000 and it gives 960 per year interest. On top of EMI, I have to pay maintenance charges of the house
No where in world EMI will be equal or smaller than rent. OTHERWISE EVERYONE WILL HAVE 2 HOMES. AND NO ONE WILL TAKE ON RENT AS TENENT CAN ALSO BUY OWN HOUSE BY PAYING RENT AS EMI.
Stop misleading people
I am finding most of articles on Rediff are now nonsence
My wife & I are joint holders of a property and joint borrowers of a home loan. Can I claim the Income Tax exemption alone as I am paying all EMIs from my salary. My wife is also working but earning less than Rs.50000/- p.a.
RE:Exemption on EMIs on home loan
by Sandeep Bhat on Feb 09, 2007 04:04 PM Permalink
Yes, you can claim entire tax exemption. You just need to submit a declaration from your wife when you file your tax returns. The declaration should mention that she has not claimed any benefit from the same loan.
