If your read above article carefully A) and B) option. B will be definetly better after paying rent of 20 years what your are getting in hand but if you purchase house then after paying more EMI after twenty years house become your and same value of that flat would be much more. So B is the best option.
RE:But after paying EMI house become the owner
by on Apr 30, 2007 06:24 PM Permalink
Hi friend your right. who are so called financial consultants, some times they don't have minimum brain. Hello rediff please do not post this kind of immature calculations. Please find correct calculations here. --------------------------------------------- 1. Total expenditure on rent after accounting for tax benefits (A-B C) Rs 4,619,303 2. Total expenditure after adjusting for tax benefits (A-B C) Rs 7,429,300 So if we have own house over 20 years the burden is: 7429300 - 4619303 =2809997 But finally house worth will be around 1.68 crore ( assumed yearly 10% growth). So we were able to save : 1.68 - .28 = 1.4 crore worth own house ********** House Initial cost 2500000 Ho use cost after 1 year 2750000 Assumed yearly 10% appreciation House cost after 2 years 3025000 Assumed yearly 10% appreciation House cost after 3 years 3327500 Assum ed yearly 10% appreciation House cost after 4 years 3660250 Assum ed yearly 10% appreciation House cost after 5 years 4026275 Assum ed yearly 10% appreciation House cost after 6 years 4428902,5 Assumed yearly 10% appreciation House cost after 7 years 4871792,75 Assumed yearly 10% appreciation House cost after 8 years 5358972,025 Assumed yearly 10% appreciation House cost after 9 years 5894869,228 Assumed yearly 10% appreciation House cost after 10 years 6484356,15 Assumed yearly 10% appreciation House cost after 11 years 7132791,765 Assumed yearly 10% appreciation House cost after 12 years 7846070,942 Assumed yearly 10% appreciation House cost after 13 years 8630678,036 Assumed yearly 10% appreciation House cost after 14 years 9493745,84 Assumed yearly 10% appreciation House cost after 15 years 10443120,42 Assumed yearly 10% appreciation House cost after 16 years 11487432,47 Assumed yearly 10% appreciation House cost after 17 years 12636175,71 Assumed yearly 10% appreciation House cost after 18 years 13899793,28 Assumed yearly 10% appreciation House cost after 19 years 15289772,61 Assumed yearly 10% appreciation House cost after 20 years 16818749,87 Assumed yearly 10% appreciation
RE:But after paying EMI house become the owner
by anchal sultania on Apr 30, 2007 06:53 PM Permalink
Please nore carefully that he also talked about creating asset for oneself.. and your calculation shows the same as qualtitative value of that statement.
It is easy to undermine statements, but difficult to really understand the meaning of everything.
RE:But after paying EMI house become the owner
by Ramesh on Apr 30, 2007 06:38 PM Permalink
asmani kabootar zameen pe aa. har saal 10% growth ka guarantee tera baap de ga kya.
RE:But after paying EMI house become the owner
by bv srinivasarao on Apr 30, 2007 06:54 PM Permalink
are subbrao, u see current trend in bangalore and hyderabad for fast five years we saw gorwth 50 to 100 %. i am sure this will not happen every time. thats why I assumed 10%, if not 10% just assume 7%.
NOTE: If you don't belive atleast 7 to 10% annual growth. so then these calculations are not suitable to you. ---------- House Initial cost 2500000 House cost after 1 year 2675000 Assumed yearly 7% appreciation House cost after 2 years 2862250 Assumed yearly 7% appreciation House cost after 3 years 3062607,5 Assumed yearly 7% appreciation House cost after 4 years 3276990,025 Assumed yearly 7% appreciation House cost after 5 years 3506379,327 Assumed yearly 7% appreciation House cost after 6 years 3751825,88 Assumed yearly 7% appreciation House cost after 7 years 4014453,691 Assumed yearly 7% appreciation House cost after 8 years 4295465,45 Assumed yearly 7% appreciation House cost after 9 years 4596148,031 Assumed yearly 7% appreciation House cost after 10 years 4917878,393 Assumed yearly 7% appreciation House cost after 11 years 5262129,881 Assumed yearly 7% appreciation House cost after 12 years 5630478,972 Assumed yearly 7% appreciation House cost after 13 years 6024612,5 Assumed yearly 7% appreciation House cost after 14 years 6446335,376 Assumed yearly 7% appreciation House cost after 15 years 6897578,852 Assumed yearly 7% appreciation House cost after 16 years 7380409,371 Assumed yearly 7% appreciation House cost after 17 years 7897038,027 Assumed yearly 7% appreciation House cost after 18 years 8449830,689 Assumed yearly 7% appreciation House cost after 19 years 9041318,838 Assumed yearly 7% appreciation House cost after 20 years 9674211,156 Assumed yearly 7% appreciation
