The author has exggagerated a bit on rent but the point is: if your current cash flow permits buying a ready made house, renting it will assist you in owning it most definitely thru rent appreciation much before the loan period. If Rajeev Lal took 85% loan(1487500) for 15 years @ 10% and gets a realistic rental of 5000/-pm after meeting maint/cost then rental income(9 lakh) has paid for 31% of his total cost(Final cap intt: 180 instlmts :28,65,625),his inflow is 5000/-pm & outflow 14462/- pm so net outflow 9462/- pm assuming intt rate, rental & maint cost all are static(for simplicity). Chances are Rajeev Lal will be doubling his investment between 3rd to 5th year of purchase going by current rate depending on metro/cosmo invetsed.
