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RE:Good article
by Subir Dhar on May 01, 2007 10:17 AM

Hi,

(See my message before this one). Taking the data from Praja's message - If the rental is 5000 per month and 60,000 per annum. The intrinsic value of the property should not be more than 16 times the annual rent, say about Rs. 9.6 lacs.
Thus, if the current market value of the property is Rs 25 lacs, the return on it is Rs. 60,000 or about 2.4%. Thus, better go for rent - and as a sideline, buy two plots some distance away. Five years down, sell one plot and make the house on another.

Regards

Subir

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The above message is part of the Discussion Board:
Buy a house or stay on rent?