What has been mentioned in this article perhaps would work in Pune, if you really bought your second house in Jan 2005. It may not work if you buy your second house now. Reason? While property rates have more than doubled in last 2 years in Pune, the rents have not gone up by that rate. Hence the loan you need would be bigger, leading to more EMI. The difference between the rent you would get and your EMI would be much bigger now and you need a substantial surplus in your monthly income to bridge this gap. The recent hike in the interest rate on housing loan has widened this gap further.
