One point that will skew the above argument completely will be revenue expenditure Vs Capex. When you repay your home loan, you are paying back a part of the principle, which could be thought of as capex.
Renting leaves you without an asset and is entirely revenue expenditure.
Secondly, what is the person lives for 30 more years? and when you are 75 there is another finance minister like the current one (probably his son!) and inflation rises to 8%!
RE:Revenue Exp Vs Capex
by Vikas Singh on May 11, 2007 12:49 AM Permalink
Over past 3 years, I bought a land and a flat on loan with buy price of 9.66L and 21L resp. Today the cost is 28L and 32L resp. Collectively for both purchase, the investment from my side is around 10L till date. So in these three year, 10L gave me back 30L pure cash. So better buy a house than paying more than 10K as rent. its a waste any time.
RE:Revenue Exp Vs Capex
by Sonu Kumar on May 11, 2007 05:22 PM Permalink
But Vikas now it appears that there will be no drastic hike in property rates in the next 1,2 years. What is your idea
