Consider a scenario: In ADF, builder gives 8% discount and the project takes 2 yrs to complete and the total loan period is 15 yrs
Point by the author is about investing the interest saved in first 2 years. (note: you are not going to make any more investments into this investment after the first 2 years)
My point is: The monthly difference in EMI (because of the 8% offer provided by the builder, your loan amount as well as EMI should be lesser) in the years from 3rd to 15th years; If you invest this money on a month-on-month basis and do compound interest calculation, this will exceed money saved in the pre-emi option i think.
I am not a financial expert, but with simple calculations, i think ADF is better.
Anyone has any thoughts on this??? Especially the author.
I just booked a flat and I am in the same confusion; ADF vs Pre-EMI... Your responses are welcome.
