What is the TRUE COST of a HOME? - E 06
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- Опубліковано 17 сер 2023
- In the previous Part of the "Homevestment" debate, things got interesting in the battle between math and emotions.
Let's push the stakes further this week. Is the true cost of a home just the money you spend on it? What is the most neglected aspect of home purchase calculations?
Pattu tells us what it is and how we must at least acknowledge it.
We also broach the topic of real estate as an investment.
#Glisten now as the answer to Soumen's question spills over into this second part of our discussion on Homes and Real Estate. Send in your very own questions, stories, doubts, etc., through any of our socials for a chance to feature on the show!
Glisten to the previous episode:
• Should EMIs be 30% or ... - E05
Also, Glisten to the next episode through here-
• The Invention of the F... - E07
In association with @pattufreefincal
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this is why your active income should be substantially satisfying income per year then you can go all into investing.
People should not discuss what they don't do. People calculate rent as 3%. 1 cr get 30k. but after 20 years, this rent will be 1L, rent will put 1cr in pocket within 20 years after rent appreciation, rupee depreciates, this flat value in worst case will be 3cr at that time.
Funny. Calculate compound interest for 30k per month at 12% per annum for 20 years.
You are really stupid if you believe that a flat which is today fetching you 30K will fetch 1 lakh per month at later stage.
It will never happen and let me tell you why. Because after 20 years that flat will be 20 years old squeaky apartment which most of the tenants would refuse to live in.
In fact, just check in today's time how many people are giving same rent for 10-15 years older apartment and for recently built apartment. You'll get the picture.
@@WalterWhite-og6wj , Did you heard of Mivan technology, these apartment will be as it is for next 50 years. You should be in real estate to understand this. You sell when you feel the flavour is changing in real estate, otherwise people will never be able to get to real estate. I will be unreachable to many in next few years in big cities. The core prime areas are fetching 70k rent right now if you are not aware for a 3 bhk. you should know where to invest..... Look at luxery segment and not to old broken apartment where rent doesn't increase. The more you own, the better your future generation will be able to handle the shock that inflation will have in big cities where everyone is moving...
@@WalterWhite-og6wj.. hmm..interesting point...however, the rent of old flat might not be at par but lets say 20% lesser than a new flat...still the earning they will make will be higher ROI as the invested base amount for old flat would be very low.
For ex, today someone buys a flat for 1cr, getting rent of 30k. After 20 years the same will become 3cr for new flats. Lets assume same 3% yield for new flats. So 90k rent will be new flat and hence ROI will be 3%. However, for that old flat it might get 70k rent (since its old), stillhis invested amount was 1cr for purchasing that flat, so ROI for old flat will be around 8.5% , which is a passive income.
@@sabirtube Agree, but you have to understand the concept of opportunity cost.
For the first 15-20 years where you actually lose money where rental yield was just 3.5% whereas inflation is close to 6%
Even if that yield becomes 8.5% after 15-20 years, still it will take at least a decade more to recover losses. Also, we haven't deducted the taxes out of this rental yet otherwise yield will be much lower when we deduct taxes, repaint and maintenance after every few years.