If u look at the video, we can say this guy spent a lot of time to prepare the sheet, briefing, video editing, analysis etc. I'd like to thank you for the effort put in together to prepare this video.
@@ruthwickgunipati1881 Son first of all, he took time period of 20 years but we all know, people need house to live till age of 70-80 years , so time duration should be taken 60 years.
me and my family had stayed in rented houses since I was born and married from there also. I know how much they need their own home. Azadi Hoti hai Apne Ghar me.
20 साल बाद पूरा लोन निल होने के बाद खरीदा हुवा घर ज्यादा बेनिफिट देता है. 20 साल बाद लोन की किश्ते बंद हो जाएगी। लेकिन रेंट वाले केस में जीवनभर भाड़ा भरना ही पड़ेगा. ओल्ड एज में ये रेंट वाला घर परेशानी का कारण बनता है।
As far as I'm concerned, there are lot of risks associated with buying an apartment: 1. What if you have to relocate and you're not able to sell off your apartment? 2. What if you lose your job and you're not able to pay EMIs? 3. What if real estate does not grow as fast as you think? ie, there is only a marginal difference between loan interest rate and real estate growth rate. The only reasons I can see to buy an apartment are: 1. If you don't have any ancestral home that you can fall back to if nothing goes right 2. Sentimental reasons - there is prestige and dignity associated with owning your own home 3. Marital reasons - Bride's parents may look if the groom owns the flat he's living in
Exactly ,👍 If already having house( even in village ), people should not buy house , need to go for other options where they get more profit . Best option go for land buying and lease it (no risk ) Invest in stocks (risky) Lend money for interest (highly risky) Fixed deposits or ppf (last resort )
This man can guide any person even under educated person like HSC or SSC pass can get good knowledge and can make good decisions about their investment. I appreciate his efforts for unlocking finance knowledge. He is great teache best guide and also want to thank you for making vedio in hindi. As we are not good in English language. Wish you prosperous Diwali Dusshera and also wishing you helthy and wealthy life. You are best guide.
I think it is better to live on rent if there is a posibility of relocating to different places.I also agree having own house is important atleast in hometown.
@@debanikgoswami4834 If one has to relocate often then he can live on rent till the time he is working and save the amount while he is working and once he retires he can buy the home with his savings.
आपका बात को समझाने का तरीका बहुत सरल, सहज और अच्छा है. वास्तव में, अर्थ से जुड़े विषयों पर वीडियो बनाकर आपने इससे जुड़े मामलों पर मेरी सोच को काफी स्पष्ट किया है. धन्यवाद. साथ ही, इसके लिए शुभकामनाएं.
By owning own house is peace of mind ....security ,and retired person when inflow of income is decreased ,beside after every agreement is over it's pain for hunting and depends on landlords whims .
Buying house includes cost of construction: for example: Say 50 lacs flat is 1000 sqft. Cost of construction is 1200 per/sqft. Total cost of construction = 1000 *1200 = 12 lacs Perc cost of con = 1200/50 = 24% If we opt to sell flat after 20 yrs, in the above example. Flat would need rebuilding due to wear n tear(Depreciation of building). Hence (FV)Cost of con = 24% of 1,24,41,600 = approx 30 lacs Should be treated as additional loss in case of selling property in future.
If you have salary above 60k in hand then , The best way is playing safe on both sides. Buy affordable property that lets you keep EMI below 30k and invest monthly 10k in mutual fund. Then at the end of 15-20 years you'll be having good savings and also a sweet home that is all yours . Let me know your views on this
Hmm... Not completely agree I'm earning 70k post tax. But I'm having other family liabilities. So, it's not about in hand salary but only thing how much are you financially and liability free.
Very simple approach, Your first home is your need. Second home purchase and renting it means max 2.5% appreciation. Second home purchase and keeping without renting is 'Financial illiteracy' !
You forgot to mention one thing, to recover monthly EMI in case of an Independent house with a floor you can rent it out and repay the EMI accordingly. Thus reduces the risk
Totally incorrect Analysis. Ignored many important factors 1. Property tax is not evaluated. This would start with some value and keep on incrementing every year. 2. Tax and registry are not incorporated in initial amount. Bank will only give loan for property value and not for tax and registry. This is add another 10 percent to the cost. 3. 8 percent return on property is totally incorrect figure. No property in India is giving this kind of return 4. Liquidation of property is not easy. Selling a 20 year old property has very bleak chances when people always have the options to buy new and cheaper flats.
Your 1st 3 points r correct but last one is incorrect because Everybody want to live in the center of the City because he got everything close to him but u purchase a plot/house outer of the city today but in next 10 years your house r surround by thousand of housing society, and in next 10-15 year your house in another center of city.so you got too much cost of your house .
We both are working couple and at that time our salary was 32,000. We purchased a flat in 2011 at EMI of 16500 which was equal to one of our salary. Now after 10yrs our salary is 80,000 and the rent is 10,000 flat price is hiked from 22lacs to 75lacs. I think it was our good decision at good time. By this decision I think we have reduced a major tension of unstablelity in our after retirement and next generations life.
Genuine efforts never get subdued! This is the first channel where I have seen more focus on knowledge building of the viewer rather than high handed and cacophonous efforts to sound classy and earn subscriptions ...The first channel that I have subscribed in last 8 years!
Really nice video. Clears a lot of doubts. I have been living on rent for past 10 years and here are my additional experiences: Pros: 1. You can live in a better area which you wouldn't be able to afford otherwise. For example: You can live near a big market where the costs are higher, but you would have to spend little bit of money in commute to the market if you were living away from the market, etc. 2. Office commute. My office is 5 mins of walk from my rented house. This is a great benefit. I don't have to spend any money on commute. And guess what? I get additional time to pursue my hobbies or get more time with family. 3. Health issues due to travel. I used to live far away from my office earlier, but after moving closer, I feel much more relaxed and my overall medical bills have reduced! Some cons that I have experienced: 1. Societies don't give equal benefit to tenants. Tenants get treated like they are some low lifers. Which I can't understand! 2. People in the society do not mingle well with the tenants. Again, I don't understand why. 3. Moving from one house to another is a pain. One question: Can societies differentiate between buyers and tenants? Like not giving access to clubhouse etc. Is this even legal?
Good point. Societies are given lot of powers. But I guess, tenants have not contested this in court. And yes, I agree landlords do not mingle the same way with tenants.
Aao kahbi haveli me or 2 mahine rent pe raho.. makan malik or ash paros k logo k baat sunke na savings ka bhoot utar jayga..apna ghar apna hota hai or is azadi ka koi value nahi..
1) What about rent received on the property whereas the owner stays at another own house - Buying scenario 2) What about to be paid income tax , at least housing loan saves some tax from salary - Rent scenario 3) Rent that can be acquired on the construction of couple of floors in an individual plot scenario - Buying scenario 4) Insurance benefits of the house if property owner or buyer hits with any uncertainty, his family can have house - Buying case 5) Loans like OD or SBI maxgain or any other OD loan will help buyer to get some liquid funds if necessary along with having property - Buying scenario
But the best option is buy a house and also do mutual fund together and make a plan till 7 or 8 years to complete the home loan.. I am doing that and expected to complete my 20 years loan in 8 years..👍👍
I know those who pays rent and with those money that has been saved they r running a sucessful business where the returns are much much high,so if u you have a prper bussiness plan there's no need of comparing ,rental is beneficial.
If you buy a house of 50 lakh (50000 month on loan) or take is as a rent of 20k per month so till 20 years you have to pay 50000 a month (1.2 crore+ Maintenance+Tax) let's talk about rent you have to pay 20k (After 20 years total rent paid is about 48 lakhs ) Choose your option
Fifty lacs ka flat, if bought ten years ago in Delhi, is not getting sold at even 50 lacs at present because everyone wants a new construction. But those bought fifteen years ago is now giving 2.5 times return. So, going by your logic, wo baaki ki 2.5 times return abhi next ten years mein dega.
Nice informative video, but you have forgot to highlight an Important point shown below : 1. In your 1st example you have shown net savings of 1.04 crore on Rent and 1.38 crore on Own house, present scenario of long term capital gain on mutual funds or shares is 10 % while tax on ltcg on immovable property is 20 % with slight benefit of Indexation 2. 1.04 crore is fully liquid, you can utilize for your social commitments, where as in case of sale of own property you need the sale proceed to either buy a new property which might be of same value with no liquidity in hands or go to a rented house to utilize the sale proceeds for your social commitments. 3. Own house needs lot of maintainance over the period and would look worn-out whereas you have the liberty to change to newly built house if you wish to. Correct me if I am wrong. Regards Amit
One point is missing. There is moving charges. We don't stay forever at the same house as the landlord will usually vacate the premises within 3 years. That would easily cost about 50k.
There is a flaw in your calculations. When you have already deducted 15000 from monthly savings then why are you again deducting this again from total savings.
@@rahulft2004 put kaisa bhi ho dhan sanchay jaruri hai varana put latmar ke ghar se bhaga dega pade rahana road pe kyuki kuput nikala to kam se kam dhan sanchay se budhapa to kal jayega kahi ye kahawat bilkul backwash hai garib logo ko mislead karati hai।
Need one more calculation, the net profit in case of buying is 35 lacs after 20 yrs, what is the value of that money in current time. With 8% appreciation that amount should be 7.50 lacs. My personal feel is one should not buy homes just for the sake of traditional thinking that one should own a home. Renting home specially in the start and middle phase of your career will allow you to go wherever you want to work with best facilities/compensation. But if you really already have a heavy lumpsum amount may be from your dad's retirement , from investment perspective you can buy home/property etc.
Overall Best knowledgeable Video and This channel is best in finance. But, given calculator is on the assumption that tenure for loan and rent are same. Problem is that after completion of loan, Property buyer pay nothing and invest everything and renting always paying his Rent.
By the way I unprotected the excel sheet only in first try, sorry sir. I will modify it and send it to you if you give me your mail id. mine is nitin-ca@hotmail.com
Joke Aur jab tumhara ladka 25 saal baad bada hoga aur tum ladki dekhne jaoge to sabse pehle poocha jayega apna makaan hai , ab tum na bologe to ladki bhi acchi nahi milegi !! Agar iska depreciation cost agar tum calculate karoge to tum sochoge ki kash Ghar le Liya hota !! Aur tumhare ladke ko agar ladki pasand AA gayi aur wo rishta nahi hua kyuki tum rent pe rehte ho to kya. I think ye point bhi Excel mein add karna chahiye !!! Jokes apart !! It's not always be very calculative , but sometimes you have to make sure you need things at any cost. If you stay on rent , then there are changes that you have to change your home frequently since lease expires or may be landlord sells their property or they don't want to extend it then your shifting and damage cost will also need to be added. If you spend 10k per year for shifting then calculate it for 10-15 times in 20 years !!
bhai Tension 25 saal baad aayega jb ladka ya ladki bade honge tb tk rent pr rehkr khood ki life ki hr mahine ki tension se mukti or ek secured ammount hone pr job chali bhi gyi to tension gero lekin bank loan lene pr kishte bhrte bhrte dimaag ka dahi or us bich job gyi to 🙄 sucide
If you can afford it but it else stay on rent. If you buy remember the loan is for 20 years and if I think of next 20 years I would like to keep my cash as AI is coming in to take over jobs. By 2025 40% people will loose their jobs. There will be new blood to replace you with much less salary.
A simple point to understand is that, when renting, the savings are over and above rent paid. In case of owning a house, it’s your house plus the savings that you do.
Hi, Great analysis! Point to add: Over a 20 year period, a purchased apartment would undergo at least one major upgrade. Would be nice if you could add this to your analysis.
Truly speak always buy a house .... I have purchased a flat in 2007 in Mumbai for 15 lakhs now it's worth 1.5 crore , worth the pay and in next 2 years it will become 3 crore.. Edit: it's just 200 sq ft..
@@MrX-eb6dv if you have a huge budget then sure buy in bandra ....and first don't go to a broker if your any family member lives in bandra better take his advice...
One Wrong calculation It assumes that Every year saving of EMI over Rent is same but thats not case as time progress Rent will increase EMI remains constant and after few years Rent will be more than EMI and therfore no Saving at all and thus will alter the decision
@RAP dher sare ghar karna ab mushkil ho raha hai, 40 lacs ka ghar bank apne se 80 lacs loan repayment le leti hai usme hi zindagi chali jati hai. Ha agar kuch kheti or alag property bech ke liya ja sakta hai 2nd home then its best. emi 12-15k abhi nahi rehta because logo ke lifestyle ke vajah se log jyada loan lete hai aur kam down payment karte hai as a result bank ka bohot fayda ho jata hai aur admi fas jata hai. Mera kehna ye hai ki agar aap 1 bhk main fit baith sakte ho to 1 bhk hi le josh mai aake 3 bhk mat le. Khas kar ke software enginers jo ki 30s mai bohot kamate hai but baad mai kabhi bhi job ja sakti hai.
Thank you sir for the amazing video, just the exact calculation i was looking for, i used your excel sheet too But i have 3 questions 1. Rent ke case mein, D' + S' - R' kaise ??? S' means saving, humne rent pay karke jo bache wo S' cell mein put kiye hai, then wapas R' subtract kyu kar rahe hai ? 2. Net saving in Rent scenario is completely liquid and we still paying our rent regularly. But in case of Net saving in Buying scenario, it won't be Net SAVING instead it would be Net COST, toh we can not utilize entire cost, rather i am saying if we sell our home, we need to buy any small home worth 50-70% cost of previous home, then net saving would come down to 30-50% only ( considering we have only one home, jaha either we are paying rent or emi) 3. After 25-30years, a home/flat would require entire renovation which would cost minimum 50% of its market price else its price would start decreasing year after year, what about that point for long term calculation ? Correct me where i am calculating wrong Thanking you in advance 👍
i also agree with you point no. 1 D'+S' hi hona chahiye D'+S'-R' nahi hoga ..... rent pahle hi minus ho chuka hai dobaara nahi hona chahiye its a big flaw i guess
Sir, It is very difficult in India to find a suitable rented house of your choice and price without restrictions by the owner. In small cities the landlord feels that he the boss of the tenant. So if you have capacity to by a house it is always better to buy or construct it unless you frequently change the city.
Biggest issue in this theory is consideration period of 20yrs. As one will have to give rent till he dies, to own house EMI payment will be for 20yrs only. So consider rental time for atleast 40yrs vs emi time of 20yrs
I am 27 year old from Uttrakhand. i live in Delhi. earn 35000/- and live in sharing with my friends which cost me 5000/- maximum including foods, rest amount i invest for future saving. I can't planning to buy a home at present because i am not sure this is last point of my carrier wing. True fact is i want to spend my old age life in the hills of my Uttrakhand.
कुल मिलाकर सब कुछ अनिश्चित है। और किसी भी हाल मे मकान लेना ही अच्छा रहता है। क्यूंकि जब आदमी को लोन की किस्त देनी होती है तो वो जॉब मन लगाकर करता है। किस्त ज्यादा जाती है तो वो पैसे फालतू खर्च नही करता। और आज अगर २००००किस्त बड़ी लगती है तो १० साल बाद ये ज्यादा नही लगेगी। क्यूंकि सैलरी बड़ती रहती है। रही बात लांग ट्रम और शार्ट टर्म की तो भारत मे लोग अपने बच्चौ , बच्चौ के बच्चौ और उनके भी बच्चौ के लिये कमाते हैं। तो लॉंग टर्म मे मकान सही है पर हॉं घर सही जगह पर लो।
Iski calculation galat Hai ab investment per returns 15 percent milta hai to aapke3pass property se zyada value ka cash hoga3itna ki ek ghar let o Low 20 lakh se enjoy
Missing things - Changing of Rented Properties includes major costs like - BROKERAGE, MOVERS AND PACKERS CHARGES, RELOCATION CHARGES OF - TELEPHONE, DTH, AC DISMANTLING/REINSTALLATIONS, WATER RO etc
Long term appreciation of a residential house is just a notional profit because it is a 'dead investment' as we're living in it.. Renting is always better if you think about flexibility and practicality.
Great analysis , one thing i can't quite agree with, is the FV of property at the end of 20 yrs is 2.33cr , appreciating at 8% . Here me out 1. Any house you consider, in 10 years the design of it becomes old school compared to the current to the latest designs 2. You don't know the quality of the building where you're buying the flat, i don't think the buildings will last as a livable place for more than 40-45 years, even after considering all the investments you'll make in doing some major repairs. I've seen apartments in a metro city, where the owner was trying to sell a house for 65-70 lakhs , which he bought 14 years back for 60 lakhs, still nobody buying it. And this is in a prime area. That's like 10% in 14 years. Plz give your opinion with this. What's your experience been. Any example. Previous buildings life time anyhing!!! Thanks
Just Replying for your second point. I Dont know which metro city you are talking about But if you can ask somebody about Dadar, Khar, Sion, Chembur (Near by areas to mumbai) then 20-30 year old school building flats are ranging between 2-3cr 2 bhk or 50-60k rent. which owners may have bought at 2-5 lacs
Your excel sheet is totally wrong, monthly savings will decrease every year as rentals will increase every year while EMI will remain same, In fact after some years EMI will cost you lower than monthly rentals. One more thing u didn't cover is that since u own ur house, u can let out some part of it and cover a substantial part of EMI
Ravi Pratap He has assumed an increase in rent on an annual basis. The time value of money has been calculated so your observation is incorrect. Further, he is talking about flat of 50 lakh, not a land property. You can only use it for your family.
THERE ARE THREE BASIC NECESSITIES OF LIFE. FOOD WATER AND SHELTER. THEREFORE BUY A HOUSE RATHER THAN RENT IT . WHEN SHELTER IS OWNED , EVEN IN YOUR BEKARI DAYS,, YOU CAN SURVIVE IF YOU HAVE ROOF OVER YOU. PERIOD.
I think you missed few things in calculator. 1. In buy section reduce rent from the EMI Because when you are paying emi for home. You are saving rent , so calculate total of rent at ROI of 9 % and reduce it. 2. Calculate 3 months of security deposit at ROI 9% and reduce from buy. 3. Last but not least, brokerage + movers packers + AC and other fixing charges whenever you change the home. To me it's min 25k. Calculate at 9% roi and reduce. And not only this. After completion of 20 years the current rent of that time will always be a saving per month for further 10-20 years, this no one is considering and this will always prove buying better.
Nice analysis and I agree to it. I just want to point out one thing that if my property value becomes say 2 CR after 20 years (which is great!), but who is going to pay me 2 CR for a 20 year old construction (talking about flat only!) and how many people can actually afford to buy a flat worth this money. I am considering if I need money on an urgent basis (medical bills, etc. etc.). At least with invested money (returns in the form of SIP, FD, or whatever), I can withdraw it anytime with may be less value but I will be rest assured that I have this amount in hand. I may be wrong, but that is my perception. Thank you!
Sir yr VDO is always very informative & force to think abt this. After watching yr vdo I have some point in my mind, may some people not agree with me. Few more Condition also consider. 1) Are u in Private Job or Govt job. 2) How much time u stay in town like ( 1yr/ 2yr). 3) Location/ Society can't change in Buy Home. 4) 20 yrs tension for Big EMI. 5) In odd situation Can't de grade yr EMI( it's fix) but u can take low rent home when there is some issue in recession.
Insan chahe kitnae Ghar bana le is dharti par Lekin insan ka asali Ghar upar hi hai 😊😊😍😍☺️☺️ ऐसा यहु संसार है, जैसा सैंबल फूल। दिन दस के व्यौहार में, झूठै रंगि न भूल।।
@Asset Yogi, I believe you should have also considered the cost of acquiring a property (brokerage, registration cost, stamp duty, loan processing fees etc.) And again the cost of selling a property to liquidate the investment as both are decent high costs, I believe in that case rental will always remain on higher position. Would love to hear your views.
Excellent video sir. I agree with you, own house provides you stability and mental peace. It is very difficult to shift house with having baby and after marriage.
Best is rent because it's cheap , flexible you can change whenever you want . Rent from property only gives 2 percent return but FD gives 6 percent , mutual funds gives 8 to 9 percent roughly .
It is cheap in the short term, but on a long term basis it’s actually expensive. The reason I feel this way is because a loan if you are able to afford it can be paid off within a fixed period of time after which the property is yours for good but rent, you will have to pay it all your life whether your income increases or decreases
Sir ,wanted a video like this and finally I found your channel. Thanks a million sharing the valuable information. Looking forward to watch all your upcoming videos. Really appreciate your work.
We have short life...I don't want to waste time in paying Emi only for whole life...by staying on rent I can invest rest money in mutual funds and also exploring enjoying my life by doing solo Europe tours and travels in the world ...we have only 1 life can die at any moment
Me too. Dont want to waste life in paying emi and showing off your ( actually banks ) brand new home to your relatives. Instead i will save up money and do trips to europe, UK, singapore and many more countries so when i will die, i wont have any regrets.
apart from these trips to abroad, i am also investing money in ppf and nps. With 1.2 crore at age of 47, i will live at good area and will keep on paying rent.
Maine apne sabhi whtsapp broadcasts mein forward krdiya hai sir.. Thanku so muchh.. Maine khud ka construction startup kiya hai cousins ke sath jo already 4 saal se builder hai.. mra business to logo le ghar lene par hi badhega..isliye main clients ko yahi suggest krta hu ki landlord ko paise dene se achha property purchase kariye aur rent ko bank ke emi mein convert krdijiye taaki asset ban jaae..
Tere jaise Chaman chungo inshan ke liye ye video nahi hai bhai real estate market ke bare me suna hai aagr nahi suna hai to sun lo fhir ye video dekhana accha se samajh aayega.
because its 20 years old flat that's why you can buy it at a coast of 2.33 cr otherwise if you want to get a new property 20 years later but similar to old one which we are discussing about then it will cost atleast 10 times more because of inflation rate wich will be around 20 cr. It means at that time anybody happily would want to buy your property at 2.33 cr 🙂👍
But EMI- rent can’t be constant as rent keeps increasing every year and EMI would be almost same . And as time passes, rent will become more than EMI. And the difference in EMI-RENT will not be constant for 20 years
Good analysis.. but buying home is emotional decision for 20 years you loose the freedom of doing something on your own take some bold steps in your life
Agar bilkul sahi advice chahiye toh poora padhna Samajhdaari isme hai ki agar aap 15,000 monthly rent pay kar rahe ho toh 50 lakh ka ghar mat lo sasta lelo 20 - 25 lakh tak ka jisme se 10 lakh jo aapke paas hai pay kardo 2 number paisa toh dena padhega pehle hi aur uske baad 9 percent interest ke hisab se pay karte raho aur jitni jaldi nipta doge utna hi acha rahega aur jab tak loan khatam hoga tab tak 25 lakh ka makaan 30 lakh ka ho gaya hoga jitna interest pay kiya sab wasool bas chote ghar mein adjust karna padega lekin aese future acha rahega aur 15,000 jo interest pay kar rahe thaey wo khatam ab uss 15,000 ko invest karo aur jab paisa jud jaaye tab iss makaan ko baech ke aur saving ko daal ke bada aur naya ghar lelo 20 saal ki journey bata di maine Thanks for reading.
25 saal apne khud ke ghar mein rehne ke baad, mujhe ghar ke paas, thode din rent par lene ki zaroorat padi. Mujhe ghar repair karna tha. Rent par available flats/houses ki haalat dekh kar, rent ki keemat dekh kar aur usse upar, makan maalikon ka ghamand dekh kar laga ki hotel mein reh kar, 15 din, ghar ek room hi repair karke, waapis aa jaun. Apna ghar, apna hi hota hai. Akele to mein rent par 6 saal bhi raha hoon. Par pehli baar hi family ke saath, rehne ki naubat aayi thi.
We are not discouraging you to buy the house. We are just demonstrating some maths. If your dream is important chase it, but every dream is not worth a chase.Its you who have to take the call what to chase and what not!
Bhai, please remember there are atleast 3-5 lakh unsold properties in most of the metro cities; not to mention of all the frauds builders trick people into. Rent bharo, invest kro aur sukoon se jio.
@RAP I agree that its one of a tough situation, but do not mix ego & emotions with investments. If you were in his position you'd have done the same. Rent toh utna hi bharna hai chahe uss makan me raho ya kisi aur. And buy the way, jab tak aap uss ghar ka pura loan nahi chukate ghar aapka nhi, Bank ka hai. & Banks are worst than any makan malik you'd find. Choose wisely.
I think rent is better option it gives a lot of benefits for wealth creation and there is no guarantee that the home loan or the house an family has purchased there is no guarantee that it will be sold after 20 years with capital appreciation and its benefits
Sir..very good video..but u missed few things in renting..u hv not consider 1/ 2 month brokerage every 11 months plus the security deposit which u may loose based the move out condition of the house....that will pull down the renting benefit..coming to flexibility..one can always move out of his own property n rent elsewhere based on need and put own hoise on rent, which will generate revenue...buying a home is a big achievement n every should buy house which can be a wise investment for the old age...also you hv not consider the tax implication on investment, that will also pull down final benefit out of renting..also Pradhan Mantri Aawas Yojona will help first time home buyers to save a lot...like term insurance, every young professionals should invest in buying a house/flat..early start will help people to complete the house loan commitment early...
1. Maintenance is usually passed on to the tenant. 2. Interest rate ain't 9% even in todays recessive market. Interest rates are bound to go down both for loan as well as FDs. 3. Appreciation 8% < interest rate 9%, this is definitely not the way market has behaved in the past. 4. On assured debt instruments like FD, nobody gives 8% return. Also FD returns are taxable. However, if the money is invested in equity, then it could be a borderline case. Paying rent and putting money in FD is senseless.
Hello Sir, Thank you so much providing such a informative video (Rent or Buy a House) to literate today's generation particularly. However, the provided video left me with certain unanswered questions. To explain on my query here i provide the details of my real time scenario for which i'm looking for the answer for which the basic details are as follow :-
Rent Amount for the Purchased property : - 15000 HRA benefit : - 20% Annual Rental Increment :- 8% Expected return :- 15% Willingness to sell property flat after :- 05 Years (Governing Factor) As it can be observed from above that, in the stated scenario the duration for taking a loan period is long as 20 Yrs which is reducing my EMI Liability. and Meanwhile i'm looking to sell the property on or after 05 Years which is the governing factor in my case. That means the reduction in EMI amount gives me leverage to invest somewhere or i will have a less amount of EMI liability. In view of above facts & figures i hereby request you to provide informative excel workbook of similar nature to take care of my question on my mail I'd rumitshah1990@gmail.com or share on youtube to help your viewer's to carry out above stated calculations. Feel free to contact in case of any clarification/inputs/query. Regards, Rumit shah +91-9970458094 rumitshah1990@gmail.com
Mukul ji.Very nice and informative video.I am living in Mumbai and this rent vs buy is common debate among my friends.Thank you for such great informative video and excel sheet
2002 me humne ek plot liya tha 3000 per yard tha ab wahi property 80000 per yard ho gai h. In 2002 : 400 yards X 3000 = 1200000 In 2020 : 400 yards X 80000 = 24000000 Capital Gain in 18 Years : 2 Cr. 28 Lacs
Ek question Hain... Salary 30k hoga to house kitne amount ka Lena chahiye...taki sab much barabar chale... Aur loan lene see pahele kitna liquid money money bank me rakhna chhaiye for emergency case.
Sir ye depend karta he aap kitne yr se job kar rahe ho aur kinta savings kya!! Down payment jitna jada kar sako utna acha he taki loan lena v par jaye toh kam EMI vare... Aur pvt sec job walo ko account me humesha 2-3 mahine ke salary rehna chaiye,taki kavi job chali v jaye to dusra dhudne me time mil sake aur ghar me v paise ki problem na aaye...
5-10 years rent par raho, saving and investment karo. Fir saving se makaan purchase kar lo. Apna ghar apna hota hain. Bank se loan bhi nahi lena hoga ya kam lena padega. Job ke bharose na rahe... Other source of income bhi bataye kyuki kharche bhi badte hain income ke saath.
Buying a house is to opted when you are permanently settled at a place. Buying and renting for others involves lot of issues, particularly depreciation of property and maintenance cost, and other unforseen issues.You have not discussed the property tax and other taxes which are to paid on annual basis. The property maintenance requires huge cost for revamping after 20 to 25 years. In case of renting also appreciation of rent and shifting charges, and loss of interest on security deposits on house taken on rent which is appreciable in big cities and metros have to be considered in calculation of cost. Moreover prudency of investment on regular basis have to be diffential and practically impossible in all cases due various factors which decide spending pattern and emergencies of life. Therefore there is no thumb rule for taking decision of buying or renting.The issue to be addressed on case to case basis.
The thing which is missed in the analysis: For case 2: In case of 'buying a house', total expenses occurred was actually the *monthly EMI* , upfront *down payment* and the monthly *maintenance amount* , resulting in the FV of the house. So we can calculate the growth as (FV of the property - Expenses occurred) For case 1: In case of 'Renting a house', total expense should have included, the *monthly rent* as well as the money which was put in the market for growth , ie *down payment* amount and the difference in *(EMI - Rent)* . So for calculating the profit in this case we should deduct these expenses from the future worth of the money that was invested.
Slowdown mein government creates new money to fund itself to complete projects and distribute salaries. It's because tax collection bahut kam ho jaati hai. Abhi inflation bahut speed se increase hogi. Government ko, economy ko revive karne ke liye aisa karna padta hai. Government has already reduced corporate tax by a huge amount. Since tax amount is now foregone, the only other method is to generate more money through RBI. Creating money is not same as printing money. Printed money is only a fraction of the total money. In few years, property prices will go further up along with the rent. FD ka return kuchh bhi nahi hoga.
Yes and its will be beneficial for your kids too when they grow up as they won't have to worry about buying or renting anymore...whereas kids of renters will alway pay rent and so as their kids and thereafter unless someone buys a property.
Owning a house was better earlier since most people had government jobs,job security and pension.Nowadays,with most people working in private companies do not have job security so owning is risky affair..
Good points but i would defer in terms of rent amount.... If you observe rent amount always hovers around 4 to 5 % of the asset value... so for 25k rent that comes to around 75lacs. Now to own this it will occur an EMI of 40-45k. Best approach is defer the purchase of flat towards later stage of life... If you follow the correct cycle of stock markets u will end up earning 15-17% annually at present... which makes initially renting a best approach...
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If u look at the video, we can say this guy spent a lot of time to prepare the sheet, briefing, video editing, analysis etc. I'd like to thank you for the effort put in together to prepare this video.
His each m every video has good content and almost best presentation. Appreciate him.
aAAq
house is not an asset or liability for most people, it is an emotion. Hence they buy it even when they cannot afford it
Yes very true
People need to get over this emotion in order to be successful
@@ruthwickgunipati1881 Son first of all, he took time period of 20 years but we all know, people need house to live till age of 70-80 years , so time duration should be taken 60 years.
Exactly... its an emotion
Robert t kiyosaki
me and my family had stayed in rented houses since I was born and married from there also.
I know how much they need their own home. Azadi Hoti hai Apne Ghar me.
Koi Dikat nhi hoti Alag Porsion me
Like the author said, personal preference. Mere hisab se murkhta hai.
Roj roj bhande kon uthaye
@@anujdimple Roj ki baat bhi hai bhai Jo Ache Development area me Rehte hai Unke liye koi Dikat nhi hai
Gauti aapki har wish Puri hongi
20 साल बाद पूरा लोन निल होने के बाद खरीदा हुवा घर ज्यादा बेनिफिट देता है. 20 साल बाद लोन की किश्ते बंद हो जाएगी। लेकिन रेंट वाले केस में जीवनभर भाड़ा भरना ही पड़ेगा. ओल्ड एज में ये रेंट वाला घर परेशानी का कारण बनता है।
Bhai yeh Socho 1 core Ka Ghar 20 Saal baad 20 core Ka hojayega
20 साल तक जो पैसा बचेगा वो इन्वेस्ट कर दोगे तो जिंदगी भर उसके रिटर्न से ही जी लोगे
@@MultiAmit25 नही ना भाई, मैं 10 साल से देख रहा हूँ रेसिडेंशियल प्रोपर्टी के रेट्स बिल्कुल भी नहीं बढ़े।
@@shriduttkothari kisne bacha ke rakha hai
@@shriduttkothari nhi bacha paoge
The biggest asset in one's life is to remain debt FREE.
Debt is money provided you know how to use it.
Its not always right. It depends upon how you use your loan.
So true...that's why I live on rent and drive cheap bike, though I can buy a car on emi
Thats ' Rich Dad poor Dad ' line na?
Ambani bhi yehi sochta toh kangal ho jata
You need to take loan and use it wisely if you wanna grow in life
As far as I'm concerned, there are lot of risks associated with buying an apartment:
1. What if you have to relocate and you're not able to sell off your apartment?
2. What if you lose your job and you're not able to pay EMIs?
3. What if real estate does not grow as fast as you think? ie, there is only a marginal difference between loan interest rate and real estate growth rate.
The only reasons I can see to buy an apartment are:
1. If you don't have any ancestral home that you can fall back to if nothing goes right
2. Sentimental reasons - there is prestige and dignity associated with owning your own home
3. Marital reasons - Bride's parents may look if the groom owns the flat he's living in
On point
Exactly ,👍
If already having house( even in village ), people should not buy house , need to go for other options where they get more profit .
Best option go for land buying and lease it (no risk )
Invest in stocks (risky)
Lend money for interest (highly risky)
Fixed deposits or ppf (last resort )
Bro he already consider these points in Last part of vidio
Sahi kha bhai... My wife is pressurising me to buy flat ... Just to show her friends / relatives
This man can guide any person even under educated person like HSC or SSC pass can get good knowledge and can make good decisions about their investment.
I appreciate his efforts for unlocking finance knowledge.
He is great teache best guide and also want to thank you for making vedio in hindi. As we are not good in English language. Wish you prosperous Diwali Dusshera and also wishing you helthy and wealthy life. You are best guide.
Correct analysis but having your own house is also important!
I think it is better to live on rent if there is a posibility of relocating to different places.I also agree having own house is important atleast in hometown.
Khud ka ek ghar to rehta hi hai parents ka suppose par hume bhi lena zaroori thodi na hai..tab rent pe raho
@@debanikgoswami4834 If one has to relocate often then he can live on rent till the time he is working and save the amount while he is working and once he retires he can buy the home with his savings.
आपका बात को समझाने का तरीका बहुत सरल, सहज और अच्छा है. वास्तव में, अर्थ से जुड़े विषयों पर वीडियो बनाकर आपने इससे जुड़े मामलों पर मेरी सोच को काफी स्पष्ट किया है. धन्यवाद. साथ ही, इसके लिए शुभकामनाएं.
उचित मूल्यमापन
By owning own house is peace of mind ....security ,and retired person when inflow of income is decreased ,beside after every agreement is over it's pain for hunting and depends on landlords whims .
Buying house includes cost of construction: for example:
Say 50 lacs flat is 1000 sqft.
Cost of construction is 1200 per/sqft.
Total cost of construction = 1000 *1200 = 12 lacs
Perc cost of con = 1200/50 = 24%
If we opt to sell flat after 20 yrs, in the above example. Flat would need rebuilding due to wear n tear(Depreciation of building). Hence
(FV)Cost of con = 24% of 1,24,41,600 = approx 30 lacs Should be treated as additional loss in case of selling property in future.
If you have salary above 60k in hand then ,
The best way is playing safe on both sides. Buy affordable property that lets you keep EMI below 30k and invest monthly 10k in mutual fund.
Then at the end of 15-20 years you'll be having good savings and also a sweet home that is all yours .
Let me know your views on this
Hmm... Not completely agree
I'm earning 70k post tax.
But I'm having other family liabilities.
So, it's not about in hand salary but only thing how much are you financially and liability free.
Very simple approach,
Your first home is your need.
Second home purchase and renting it means max 2.5% appreciation.
Second home purchase and keeping without renting is 'Financial illiteracy' !
You forgot to mention one thing, to recover monthly EMI in case of an Independent house with a floor you can rent it out and repay the EMI accordingly. Thus reduces the risk
There will be a big gap between Rent and EMI. Not feasible.
Totally incorrect Analysis. Ignored many important factors
1. Property tax is not evaluated. This would start with some value and keep on incrementing every year.
2. Tax and registry are not incorporated in initial amount. Bank will only give loan for property value and not for tax and registry. This is add another 10 percent to the cost.
3. 8 percent return on property is totally incorrect figure. No property in India is giving this kind of return
4. Liquidation of property is not easy. Selling a 20 year old property has very bleak chances when people always have the options to buy new and cheaper flats.
Even Registry charges and Transfer not considered
totally agreed
Totally agree
Your 1st 3 points r correct but last one is incorrect because Everybody want to live in the center of the City because he got everything close to him but u purchase a plot/house outer of the city today but in next 10 years your house r surround by thousand of housing society, and in next 10-15 year your house in another center of city.so you got too much cost of your house .
Absolutely right
Hi Sir,
My Financial Knowledge was almost zero before I started watching your videos.Your Content is easy to understand and Impliment in daily Life.
Glad to hear that 😊, keep learning 😊
We both are working couple and at that time our salary was 32,000. We purchased a flat in 2011 at EMI of 16500 which was equal to one of our salary. Now after 10yrs our salary is 80,000 and the rent is 10,000 flat price is hiked from 22lacs to 75lacs. I think it was our good decision at good time. By this decision I think we have reduced a major tension of unstablelity in our after retirement and next generations life.
👍
Nobody will buy your ten year old flat for 75 lakhs unfortunately. So, it can't be added to your wealth.
@@arjunps6776 no need to sell, it is our personal family residence and after some years automatically it will go for redevelopment.
Thanks for your input. I like your way to teaching things by making people decide based on their circumstances rather than giving any rigid advice
Thank you for appreciating Vardaan
Genuine efforts never get subdued! This is the first channel where I have seen more focus on knowledge building of the viewer rather than high handed and cacophonous efforts to sound classy and earn subscriptions ...The first channel that I have subscribed in last 8 years!
Excellent presentation..
We need to consider while purchasing a property
1) Stamp duty and registration charges
2) Cost of the interior decoration
Really nice video. Clears a lot of doubts.
I have been living on rent for past 10 years and here are my additional experiences:
Pros:
1. You can live in a better area which you wouldn't be able to afford otherwise. For example: You can live near a big market where the costs are higher, but you would have to spend little bit of money in commute to the market if you were living away from the market, etc.
2. Office commute. My office is 5 mins of walk from my rented house. This is a great benefit. I don't have to spend any money on commute. And guess what? I get additional time to pursue my hobbies or get more time with family.
3. Health issues due to travel. I used to live far away from my office earlier, but after moving closer, I feel much more relaxed and my overall medical bills have reduced!
Some cons that I have experienced:
1. Societies don't give equal benefit to tenants. Tenants get treated like they are some low lifers. Which I can't understand!
2. People in the society do not mingle well with the tenants. Again, I don't understand why.
3. Moving from one house to another is a pain.
One question: Can societies differentiate between buyers and tenants? Like not giving access to clubhouse etc. Is this even legal?
Good point. Societies are given lot of powers. But I guess, tenants have not contested this in court. And yes, I agree landlords do not mingle the same way with tenants.
I think that's because they think tenants live on temporary basis and so forth
Nice video sar
@@PraveenKumar-xg8nu Thanks!
@@AssetYogi योगीजी बोहोत लोगोके bank से 295/- rupaye investment intermedi msg में नाम लीख के पैसे कटे है इसके ऊपर विडिओ बनाओ
Aao kahbi haveli me or 2 mahine rent pe raho.. makan malik or ash paros k logo k baat sunke na savings ka bhoot utar jayga..apna ghar apna hota hai or is azadi ka koi value nahi..
Ha ha ha bhai sahi kaha apne...
You re gonna be broke then... Save to invest.. Not to save..
Sahi bola Bhai tumne.
सही कहा, एक करोड़ bank account में और सर पर छत किसी और की.
दो कोडी का मकान मालिक इज़्ज़त की मार के चला जता है
Right
1) What about rent received on the property whereas the owner stays at another own house - Buying scenario
2) What about to be paid income tax , at least housing loan saves some tax from salary - Rent scenario
3) Rent that can be acquired on the construction of couple of floors in an individual plot scenario - Buying scenario
4) Insurance benefits of the house if property owner or buyer hits with any uncertainty, his family can have house - Buying case
5) Loans like OD or SBI maxgain or any other OD loan will help buyer to get some liquid funds if necessary along with having property - Buying scenario
But the best option is buy a house and also do mutual fund together and make a plan till 7 or 8 years to complete the home loan.. I am doing that and expected to complete my 20 years loan in 8 years..👍👍
sir ji, 15000 rent 20 yrs tak same thodi hoga... har sal usme 10% increment hota hai. but EMI 20 yrs tak same hoga....
Yes. Calculator is modified accordingly. Please download and check.
Aur mumbai jaise city me har 11 month par brokerage lagega aap ghar change karo ya na karo.
Shifting ..... charges bheee toh lagegaaa
tax also can increase suddenly when you own a house....
Annual rental increase consider to kiya hai bhai.
I know those who pays rent and with those money that has been saved they r running a sucessful business where the returns are much much high,so if u you have a prper bussiness plan there's no need of comparing ,rental is beneficial.
If you buy a house of 50 lakh (50000 month on loan) or take is as a rent of 20k per month so till 20 years you have to pay 50000 a month (1.2 crore+ Maintenance+Tax) let's talk about rent you have to pay 20k (After 20 years total rent paid is about 48 lakhs )
Choose your option
Fifty lacs ka flat, if bought ten years ago in Delhi, is not getting sold at even 50 lacs at present because everyone wants a new construction. But those bought fifteen years ago is now giving 2.5 times return. So, going by your logic, wo baaki ki 2.5 times return abhi next ten years mein dega.
Nice informative video, but you have forgot to highlight an Important point shown below :
1. In your 1st example you have shown net savings of 1.04 crore on Rent and 1.38 crore on Own house, present scenario of long term capital gain on mutual funds or shares is 10 % while tax on ltcg on immovable property is 20 % with slight benefit of Indexation
2. 1.04 crore is fully liquid, you can utilize for your social commitments, where as in case of sale of own property you need the sale proceed to either buy a new property which might be of same value with no liquidity in hands or go to a rented house to utilize the sale proceeds for your social commitments.
3. Own house needs lot of maintainance over the period and would look worn-out whereas you have the liberty to change to newly built house if you wish to.
Correct me if I am wrong.
Regards
Amit
One point is missing. There is moving charges. We don't stay forever at the same house as the landlord will usually vacate the premises within 3 years. That would easily cost about 50k.
बिलकुल ठीक कहा
Buying a home in early age is very beneficial for salary class . Age above 40 can go for rental
also, in early age, salary class people switch their jobs a lot. Buying a home will become a hindrance.
There is a flaw in your calculations. When you have already deducted 15000 from monthly savings then why are you again deducting this again from total savings.
Buy is always best if u think for ur children point of view.
पूत सपूत तो का धन संचय, पूत कपूत तो का धन संचय??
@@rahulft2004 put kaisa bhi ho dhan sanchay jaruri hai varana put latmar ke ghar se bhaga dega pade rahana road pe kyuki kuput nikala to kam se kam dhan sanchay se budhapa to kal jayega kahi ye kahawat bilkul backwash hai garib logo ko mislead karati hai।
True
Need one more calculation, the net profit in case of buying is 35 lacs after 20 yrs, what is the value of that money in current time. With 8% appreciation that amount should be 7.50 lacs. My personal feel is one should not buy homes just for the sake of traditional thinking that one should own a home. Renting home specially in the start and middle phase of your career will allow you to go wherever you want to work with best facilities/compensation. But if you really already have a heavy lumpsum amount may be from your dad's retirement , from investment perspective you can buy home/property etc.
Overall Best knowledgeable Video and This channel is best in finance. But, given calculator is on the assumption that tenure for loan and rent are same. Problem is that after completion of loan, Property buyer pay nothing and invest everything and renting always paying his Rent.
By the way I unprotected the excel sheet only in first try, sorry sir. I will modify it and send it to you if you give me your mail id. mine is nitin-ca@hotmail.com
Buying is better.. Because of NO RISK.. IT'S LIKE GOLD.., whenever you need sell out and you can get cash. Apna ghar Apna hota h.. Sweet home ♥️
Joke
Aur jab tumhara ladka 25 saal baad bada hoga aur tum ladki dekhne jaoge to sabse pehle poocha jayega apna makaan hai , ab tum na bologe to ladki bhi acchi nahi milegi !! Agar iska depreciation cost agar tum calculate karoge to tum sochoge ki kash Ghar le Liya hota !! Aur tumhare ladke ko agar ladki pasand AA gayi aur wo rishta nahi hua kyuki tum rent pe rehte ho to kya. I think ye point bhi Excel mein add karna chahiye !!!
Jokes apart !!
It's not always be very calculative , but sometimes you have to make sure you need things at any cost.
If you stay on rent , then there are changes that you have to change your home frequently since lease expires or may be landlord sells their property or they don't want to extend it then your shifting and damage cost will also need to be added. If you spend 10k per year for shifting then calculate it for 10-15 times in 20 years !!
bhai
Tension 25 saal baad aayega jb ladka ya ladki bade honge tb tk rent pr rehkr khood ki life ki hr mahine ki tension se mukti or ek secured ammount hone pr job chali bhi gyi to tension gero lekin bank loan lene pr kishte bhrte bhrte dimaag ka dahi or us bich job gyi to 🙄 sucide
Ashish Arora great thing.
ये बात बिलकुल सही हैै
If you can afford it but it else stay on rent. If you buy remember the loan is for 20 years and if I think of next 20 years I would like to keep my cash as AI is coming in to take over jobs. By 2025 40% people will loose their jobs. There will be new blood to replace you with much less salary.
On what basis you are forecasting ..I would like to knw
hr chiz profit loss nhi hota ....home means emotion ...
Sahi bola bhai
Correct
Ha islye India me gareeeb log aaj gareeb hai aur ameer aur ameer bante jaa rhe hai
Emotion is also p/l
YOUNG MiNd
you don't take invest decision on emotion ... or next you will have home with no money ...
A simple point to understand is that, when renting, the savings are over and above rent paid. In case of owning a house, it’s your house plus the savings that you do.
Hi, Great analysis!
Point to add: Over a 20 year period, a purchased apartment would undergo at least one major upgrade. Would be nice if you could add this to your analysis.
Even an owned home will need renovation.
Truly speak always buy a house ....
I have purchased a flat in 2007 in Mumbai for 15 lakhs now it's worth 1.5 crore , worth the pay and in next 2 years it will become 3 crore..
Edit: it's just 200 sq ft..
Konsa area bro
@@MrX-eb6dv Worli sea face
@@MrX-eb6dv you are also from Mumbai
@@rayschindler7451 i am planning to buy a house in bandra west
@@MrX-eb6dv if you have a huge budget then sure buy in bandra ....and first don't go to a broker if your any family member lives in bandra better take his advice...
अपने पैसे को 15% से 60% (annual) के return से बढ़ाते रहो और जब प्रॉपर्टी में थोड़ा resation दिखे उस वक्त full पेमेंट (No loan) से खरीद लो यही तरीका है,,
60% return, straightaway loosing all money in a scam
@@FunPaa do business
60% ka return dene wala business bhi bohot extraordinary hoga. 60% return aam baat nahi hai
60%returns kahan se milta pls reply
@@luckydalal5149 Business me (annual) 60% se jyada mil jayega..
I always had this confusion between rent n buy. This video makes it much clearer. At least I have an insight now. Thank you so much 🙏
Me too! Great video!
One Wrong calculation It assumes that Every year saving of EMI over Rent is same but thats not case as time progress Rent will increase EMI remains constant and after few years Rent will be more than EMI and therfore no Saving at all and thus will alter the decision
but for 80 lacs flat you pay emi of 50k however you get only 20k as rent for that same flat? emi and rent is not same at all
@RAP Get the loan and see it to pay it fast is good way to go. People think it otherwise, they plan to drag this loan to their 60s
@RAP dher sare ghar karna ab mushkil ho raha hai, 40 lacs ka ghar bank apne se 80 lacs loan repayment le leti hai usme hi zindagi chali jati hai. Ha agar kuch kheti or alag property bech ke liya ja sakta hai 2nd home then its best. emi 12-15k abhi nahi rehta because logo ke lifestyle ke vajah se log jyada loan lete hai aur kam down payment karte hai as a result bank ka bohot fayda ho jata hai aur admi fas jata hai. Mera kehna ye hai ki agar aap 1 bhk main fit baith sakte ho to 1 bhk hi le josh mai aake 3 bhk mat le. Khas kar ke software enginers jo ki 30s mai bohot kamate hai but baad mai kabhi bhi job ja sakti hai.
Thank you sir for the amazing video, just the exact calculation i was looking for, i used your excel sheet too
But i have 3 questions
1. Rent ke case mein, D' + S' - R' kaise ??? S' means saving, humne rent pay karke jo bache wo S' cell mein put kiye hai, then wapas R' subtract kyu kar rahe hai ?
2. Net saving in Rent scenario is completely liquid and we still paying our rent regularly. But in case of Net saving in Buying scenario, it won't be Net SAVING instead it would be Net COST, toh we can not utilize entire cost, rather i am saying if we sell our home, we need to buy any small home worth 50-70% cost of previous home, then net saving would come down to 30-50% only ( considering we have only one home, jaha either we are paying rent or emi)
3. After 25-30years, a home/flat would require entire renovation which would cost minimum 50% of its market price else its price would start decreasing year after year, what about that point for long term calculation ?
Correct me where i am calculating wrong
Thanking you in advance 👍
i also agree with you point no. 1 D'+S' hi hona chahiye D'+S'-R' nahi hoga ..... rent pahle hi minus ho chuka hai dobaara nahi hona chahiye its a big flaw i guess
Sir, It is very difficult in India to find a suitable rented house of your choice and price without restrictions by the owner. In small cities the landlord feels that he the boss of the tenant. So if you have capacity to by a house it is always better to buy or construct it unless you frequently change the city.
सही कहा आपने
Biggest issue in this theory is consideration period of 20yrs.
As one will have to give rent till he dies, to own house EMI payment will be for 20yrs only.
So consider rental time for atleast 40yrs vs emi time of 20yrs
Sahi kaha
I am 27 year old from Uttrakhand. i live in Delhi. earn 35000/- and live in sharing with my friends which cost me 5000/- maximum including foods, rest amount i invest for future saving. I can't planning to buy a home at present because i am not sure this is last point of my carrier wing. True fact is i want to spend my old age life in the hills of my Uttrakhand.
In that case you can always invest in making your home town house bigger and better.
कुल मिलाकर सब कुछ अनिश्चित है। और किसी भी हाल मे मकान लेना ही अच्छा रहता है।
क्यूंकि जब आदमी को लोन की किस्त देनी होती है तो वो जॉब मन लगाकर करता है।
किस्त ज्यादा जाती है तो वो पैसे फालतू खर्च नही करता।
और आज अगर २००००किस्त बड़ी लगती है तो १० साल बाद ये ज्यादा नही लगेगी।
क्यूंकि सैलरी बड़ती रहती है।
रही बात लांग ट्रम और शार्ट टर्म की तो भारत मे लोग अपने बच्चौ , बच्चौ के बच्चौ और उनके भी बच्चौ के लिये कमाते हैं। तो लॉंग टर्म मे मकान सही है पर हॉं घर सही जगह पर लो।
To job kyo kerni jab life mai kuch kerne ke liy paise hi na bache aurhaa
Iski calculation galat Hai ab investment per returns 15 percent milta hai to aapke3pass property se zyada value ka cash hoga3itna ki ek ghar let o
Low 20 lakh se enjoy
@@RAJNEESHKUMAR-vn2og 😂
salary save karne ka tareeka hai investment karna, na ki bank ko kishte dena. interest khaana chahiye na ki bank ko khilaana chahiye.
@@taureau20 that's the way
Missing things - Changing of Rented Properties includes major costs like - BROKERAGE, MOVERS AND PACKERS CHARGES, RELOCATION CHARGES OF - TELEPHONE, DTH, AC DISMANTLING/REINSTALLATIONS, WATER RO etc
Everything can't be measured by money and savings. Having a peaceful joyful life in your own house is priceless.
Long term appreciation of a residential house is just a notional profit because it is a 'dead investment' as we're living in it.. Renting is always better if you think about flexibility and practicality.
Great analysis , one thing i can't quite agree with, is the FV of property at the end of 20 yrs is 2.33cr , appreciating at 8% .
Here me out
1. Any house you consider, in 10 years the design of it becomes old school compared to the current to the latest designs
2. You don't know the quality of the building where you're buying the flat, i don't think the buildings will last as a livable place for more than 40-45 years, even after considering all the investments you'll make in doing some major repairs.
I've seen apartments in a metro city, where the owner was trying to sell a house for 65-70 lakhs , which he bought 14 years back for 60 lakhs, still nobody buying it. And this is in a prime area. That's like 10% in 14 years.
Plz give your opinion with this. What's your experience been. Any example. Previous buildings life time anyhing!!!
Thanks
Just Replying for your second point. I Dont know which metro city you are talking about
But if you can ask somebody about Dadar, Khar, Sion, Chembur (Near by areas to mumbai) then 20-30 year old school building flats are ranging between 2-3cr 2 bhk or 50-60k rent. which owners may have bought at 2-5 lacs
Your excel sheet is totally wrong, monthly savings will decrease every year as rentals will increase every year while EMI will remain same, In fact after some years EMI will cost you lower than monthly rentals. One more thing u didn't cover is that since u own ur house, u can let out some part of it and cover a substantial part of EMI
Ravi Pratap He has assumed an increase in rent on an annual basis. The time value of money has been calculated so your observation is incorrect. Further, he is talking about flat of 50 lakh, not a land property. You can only use it for your family.
ryt
THERE ARE THREE BASIC NECESSITIES OF LIFE. FOOD WATER AND SHELTER. THEREFORE BUY A HOUSE RATHER THAN RENT IT . WHEN SHELTER IS OWNED , EVEN IN YOUR BEKARI DAYS,, YOU CAN SURVIVE IF YOU HAVE ROOF OVER YOU. PERIOD.
the problem is the taxes u hv to pay on house @ the end of the year.
I think you missed few things in calculator.
1. In buy section reduce rent from the EMI
Because when you are paying emi for home. You are saving rent , so calculate total of rent at ROI of 9 % and reduce it.
2. Calculate 3 months of security deposit at ROI 9% and reduce from buy.
3. Last but not least, brokerage + movers packers + AC and other fixing charges whenever you change the home. To me it's min 25k. Calculate at 9% roi and reduce.
And not only this. After completion of 20 years the current rent of that time will always be a saving per month for further 10-20 years, this no one is considering and this will always prove buying better.
Nice analysis and I agree to it. I just want to point out one thing that if my property value becomes say 2 CR after 20 years (which is great!), but who is going to pay me 2 CR for a 20 year old construction (talking about flat only!) and how many people can actually afford to buy a flat worth this money. I am considering if I need money on an urgent basis (medical bills, etc. etc.). At least with invested money (returns in the form of SIP, FD, or whatever), I can withdraw it anytime with may be less value but I will be rest assured that I have this amount in hand. I may be wrong, but that is my perception. Thank you!
Ur decision is fully knowledgeable and perfect than other person..So sir I really respect ur perfect knowledge for common people like me..Thanku
Keep learning 😊
Sir yr VDO is always very informative & force to think abt this. After watching yr vdo I have some point in my mind, may some people not agree with me.
Few more Condition also consider.
1) Are u in Private Job or Govt job.
2) How much time u stay in town like ( 1yr/ 2yr).
3) Location/ Society can't change in Buy Home.
4) 20 yrs tension for Big EMI.
5) In odd situation Can't de grade yr EMI( it's fix) but u can take low rent home when there is some issue in recession.
Insan chahe kitnae Ghar bana le is dharti par
Lekin insan ka asali Ghar upar hi hai
😊😊😍😍☺️☺️
ऐसा यहु संसार है, जैसा सैंबल फूल।
दिन दस के व्यौहार में, झूठै रंगि न भूल।।
@Dushmanta Sharma (PGDM 13-15) kyon bhai kya hua
In short buying at better place at good price is better than getting it on rent in long term.
These are sponsored by banks and realtors, rents in my area have not gone up in last 3 years 👍😂
@Nilesh Sharma not everywhere it's same in all parts of India. Better to hv for lease
@Asset Yogi, I believe you should have also considered the cost of acquiring a property (brokerage, registration cost, stamp duty, loan processing fees etc.) And again the cost of selling a property to liquidate the investment as both are decent high costs, I believe in that case rental will always remain on higher position. Would love to hear your views.
Thank you for sharing your thoughts with the community Digvijay.
Excellent video sir. I agree with you, own house provides you stability and mental peace. It is very difficult to shift house with having baby and after marriage.
Best is rent because it's cheap , flexible you can change whenever you want . Rent from property only gives 2 percent return but FD gives 6 percent , mutual funds gives 8 to 9 percent roughly .
It is cheap in the short term, but on a long term basis it’s actually expensive. The reason I feel this way is because a loan if you are able to afford it can be paid off within a fixed period of time after which the property is yours for good but rent, you will have to pay it all your life whether your income increases or decreases
Sir ,wanted a video like this and finally I found your channel. Thanks a million sharing the valuable information. Looking forward to watch all your upcoming videos. Really appreciate your work.
We have short life...I don't want to waste time in paying Emi only for whole life...by staying on rent I can invest rest money in mutual funds and also exploring enjoying my life by doing solo Europe tours and travels in the world ...we have only 1 life can die at any moment
This is the comment I was waiting for !!!😀. I think the same as you said.
Me too. Dont want to waste life in paying emi and showing off your ( actually banks ) brand new home to your relatives.
Instead i will save up money and do trips to europe, UK, singapore and many more countries so when i will die, i wont have any regrets.
After that live in old age home....perfect ?
apart from these trips to abroad, i am also investing money in ppf and nps. With 1.2 crore at age of 47, i will live at good area and will keep on paying rent.
Maine apne sabhi whtsapp broadcasts mein forward krdiya hai sir..
Thanku so muchh..
Maine khud ka construction startup kiya hai cousins ke sath jo already 4 saal se builder hai.. mra business to logo le ghar lene par hi badhega..isliye main clients ko yahi suggest krta hu ki landlord ko paise dene se achha property purchase kariye aur rent ko bank ke emi mein convert krdijiye taaki asset ban jaae..
Why would someone pay 2 cr 33 lacs for a 20 years old flat, considering that there are so many new options available.
Tere jaise Chaman chungo inshan ke liye ye video nahi hai bhai real estate market ke bare me suna hai aagr nahi suna hai to sun lo fhir ye video dekhana accha se samajh aayega.
@@harsharyan487 😂😂
2 cr 33 lakhs may seem a very huge amount right now but after considering the inflation of 20 years it will be what people will easily pay.
@Best Moments
He is talking about 20 years in future.
Mukesh Ambani ka ghar bhi 20 yrs baad four times costly ho jayga atleast.
because its 20 years old flat that's why you can buy it at a coast of 2.33 cr otherwise if you want to get a new property 20 years later but similar to old one which we are discussing about then it will cost atleast 10 times more because of inflation rate wich will be around 20 cr. It means at that time anybody happily would want to buy your property at 2.33 cr 🙂👍
But EMI- rent can’t be constant as rent keeps increasing every year and EMI would be almost same . And as time passes, rent will become more than EMI. And the difference in EMI-RENT will not be constant for 20 years
Thanks for pointing out. Will correct in the calculator.
@@AssetYogi Already taken in calculator as Annual Rent Increase
After 12 years rent > emi
No sane landlord would rent out their house for more than 7 years otherwise the tenant will become the legal owner of house 😎
Good analysis.. but buying home is emotional decision for 20 years you loose the freedom of doing something on your own take some bold steps in your life
Absolutely right..... according to freedom is most important in our life than slavery for property.
In Renting case if investment we do in share market then at least 30%-40% returns needs to be consider not 12%
Agar bilkul sahi advice chahiye toh poora padhna
Samajhdaari isme hai ki agar aap 15,000 monthly rent pay kar rahe ho toh 50 lakh ka ghar mat lo sasta lelo 20 - 25 lakh tak ka jisme se 10 lakh jo aapke paas hai pay kardo 2 number paisa toh dena padhega pehle hi aur uske baad 9 percent interest ke hisab se pay karte raho aur jitni jaldi nipta doge utna hi acha rahega aur jab tak loan khatam hoga tab tak 25 lakh ka makaan 30 lakh ka ho gaya hoga jitna interest pay kiya sab wasool bas chote ghar mein adjust karna padega lekin aese future acha rahega aur 15,000 jo interest pay kar rahe thaey wo khatam ab uss 15,000 ko invest karo aur jab paisa jud jaaye tab iss makaan ko baech ke aur saving ko daal ke bada aur naya ghar lelo
20 saal ki journey bata di maine
Thanks for reading.
right sir..same thinking here....i m working on this thought and bought a new home
Congratulations Sheetal for new home
How much did it cost you ??
Mukul ji you are doing a great job! Your knowledge and efforts are appreciable! All the very best!
Thank you for the support :)
I have seen property appreciation in South Delhi almost increasing 12 times the original cost in 20 years.
my dad's property increased by 14 times in 12 years house bought from DDA lottery in Vasant Kunj...
@@snehaashishgupta4143 In future, no one will take it as no jobs are left now or ppl will not getting that much salary in future...Berojgari only.
@@TradingHeights true
@@snehaashishgupta4143 wow
25 saal apne khud ke ghar mein rehne ke baad, mujhe ghar ke paas, thode din rent par lene ki zaroorat padi. Mujhe ghar repair karna tha. Rent par available flats/houses ki haalat dekh kar, rent ki keemat dekh kar aur usse upar, makan maalikon ka ghamand dekh kar laga ki hotel mein reh kar, 15 din, ghar ek room hi repair karke, waapis aa jaun. Apna ghar, apna hi hota hai. Akele to mein rent par 6 saal bhi raha hoon. Par pehli baar hi family ke saath, rehne ki naubat aayi thi.
Having your own home is like a dream for many people. Every thing should not be put into calculator
We are not discouraging you to buy the house. We are just demonstrating some maths. If your dream is important chase it, but every dream is not worth a chase.Its you who have to take the call what to chase and what not!
Bhai, please remember there are atleast 3-5 lakh unsold properties in most of the metro cities; not to mention of all the frauds builders trick people into.
Rent bharo, invest kro aur sukoon se jio.
Nilesh Sharma woh separate problem hain
@RAP I agree that its one of a tough situation, but do not mix ego & emotions with investments. If you were in his position you'd have done the same.
Rent toh utna hi bharna hai chahe uss makan me raho ya kisi aur.
And buy the way, jab tak aap uss ghar ka pura loan nahi chukate ghar aapka nhi, Bank ka hai.
& Banks are worst than any makan malik you'd find.
Choose wisely.
@Nilesh Sharma sub urban ma rehna chaiye
I think rent is better option it gives a lot of benefits for wealth creation and there is no guarantee that the home loan or the house an family has purchased there is no guarantee that it will be sold after 20 years with capital appreciation and its benefits
Thanks for opinion Sanjay
Clear, crisp and to the point.
Kudos !!
Sir..very good video..but u missed few things in renting..u hv not consider 1/ 2 month brokerage every 11 months plus the security deposit which u may loose based the move out condition of the house....that will pull down the renting benefit..coming to flexibility..one can always move out of his own property n rent elsewhere based on need and put own hoise on rent, which will generate revenue...buying a home is a big achievement n every should buy house which can be a wise investment for the old age...also you hv not consider the tax implication on investment, that will also pull down final benefit out of renting..also Pradhan Mantri Aawas Yojona will help first time home buyers to save a lot...like term insurance, every young professionals should invest in buying a house/flat..early start will help people to complete the house loan commitment early...
It depends from case to case and hence thank you for providing the template for it... your guidance and insights are highly appreciated.
1. Maintenance is usually passed on to the tenant.
2. Interest rate ain't 9% even in todays recessive market. Interest rates are bound to go down both for loan as well as FDs.
3. Appreciation 8% < interest rate 9%, this is definitely not the way market has behaved in the past.
4. On assured debt instruments like FD, nobody gives 8% return. Also FD returns are taxable.
However, if the money is invested in equity, then it could be a borderline case. Paying rent and putting money in FD is senseless.
Hello Sir,
Thank you so much providing such a informative video (Rent or Buy a House) to literate today's generation particularly.
However, the provided video left me with certain unanswered questions. To explain on my query here i provide the details of my real time scenario for which i'm looking for the answer for which the basic details are as follow :-
Property purchased Amount :- 43 Lacs
Down Payment paid : - 8 Lacs
Loan Tenure :- 20 Years
Loan Amount :- 35 Lacs
Interest rate :- 9%
EMI :- 31K
Tax Bracket : - 20%
Maintenance amount :- 2K
Annual maintenance Increase :- 6%
Annual Appreciation :- 8%
Rent Amount for the Purchased property : - 15000
HRA benefit : - 20%
Annual Rental Increment :- 8%
Expected return :- 15%
Willingness to sell property flat after :- 05 Years (Governing Factor)
As it can be observed from above that, in the stated scenario the duration for taking a loan period is long as 20 Yrs which is reducing my EMI Liability. and Meanwhile i'm looking to sell the property on or after 05 Years which is the governing factor in my case. That means the reduction in EMI amount gives me leverage to invest somewhere or i will have a less amount of EMI liability.
In view of above facts & figures i hereby request you to provide informative excel workbook of similar nature to take care of my question on my mail I'd rumitshah1990@gmail.com or share on youtube to help your viewer's to carry out above stated calculations.
Feel free to contact in case of any clarification/inputs/query.
Regards,
Rumit shah
+91-9970458094
rumitshah1990@gmail.com
Thanks for appreciation
Very fast explaining ! Slow &
Bold Letters...Thanks
Thank you so much for your kind words , will try to improve.
Mukul ji.Very nice and informative video.I am living in Mumbai and this rent vs buy is common debate among my friends.Thank you for such great informative video and excel sheet
Thank you for appreciation Aashutosh and glad to know that you found the video informative 😊
Buying house is better any time. Because your property is your assets. For long term buying house is better.
2002 me humne ek plot liya tha 3000 per yard tha ab wahi property 80000 per yard ho gai h.
In 2002 : 400 yards X 3000 = 1200000
In 2020 : 400 yards X 80000 = 24000000
Capital Gain in 18 Years : 2 Cr. 28 Lacs
Ek question Hain... Salary 30k hoga to house kitne amount ka Lena chahiye...taki sab much barabar chale... Aur loan lene see pahele kitna liquid money money bank me rakhna chhaiye for emergency case.
Sir ye depend karta he aap kitne yr se job kar rahe ho aur kinta savings kya!! Down payment jitna jada kar sako utna acha he taki loan lena v par jaye toh kam EMI vare... Aur pvt sec job walo ko account me humesha 2-3 mahine ke salary rehna chaiye,taki kavi job chali v jaye to dusra dhudne me time mil sake aur ghar me v paise ki problem na aaye...
One has to consider if the house is not going to be sold then mostly it will have unrealised value.
5-10 years rent par raho, saving and investment karo. Fir saving se makaan purchase kar lo. Apna ghar apna hota hain. Bank se loan bhi nahi lena hoga ya kam lena padega. Job ke bharose na rahe... Other source of income bhi bataye kyuki kharche bhi badte hain income ke saath.
Sir apki video toh mere Dil ko chuli.... Mai bohot confused tha... Now I'm very clear God bless 🙏 you 💞
Thanks 😊
Pata nahi aapka video mere recommended me kyo aya me to is field ka hu bhi nhai BUT jo bhi tha accha hi laga kuch naya seekhne mila
Glad to know that you found the video informative 😊
Buying a house is to opted when you are permanently settled at a place. Buying and renting for others involves lot of issues, particularly depreciation of property and maintenance cost, and other unforseen issues.You have not discussed the property tax and other taxes which are to paid on annual basis. The property maintenance requires huge cost for revamping after 20 to 25 years.
In case of renting also appreciation of rent and shifting charges, and loss of interest on security deposits on house taken on rent which is appreciable in big cities and metros have to be considered in calculation of cost.
Moreover prudency of investment on regular basis have to be diffential and practically impossible in all cases due various factors which decide spending pattern and emergencies of life.
Therefore there is no thumb rule for taking decision of buying or renting.The issue to be addressed
on case to case basis.
The thing which is missed in the analysis:
For case 2: In case of 'buying a house', total expenses occurred was actually the *monthly EMI* , upfront *down payment* and the monthly *maintenance amount* , resulting in the FV of the house. So we can calculate the growth as (FV of the property - Expenses occurred)
For case 1: In case of 'Renting a house', total expense should have included, the *monthly rent* as well as the money which was put in the market for growth , ie *down payment* amount and the difference in *(EMI - Rent)* . So for calculating the profit in this case we should deduct these expenses from the future worth of the money that was invested.
Slowdown mein government creates new money to fund itself to complete projects and distribute salaries. It's because tax collection bahut kam ho jaati hai. Abhi inflation bahut speed se increase hogi. Government ko, economy ko revive karne ke liye aisa karna padta hai. Government has already reduced corporate tax by a huge amount. Since tax amount is now foregone, the only other method is to generate more money through RBI. Creating money is not same as printing money. Printed money is only a fraction of the total money. In few years, property prices will go further up along with the rent. FD ka return kuchh bhi nahi hoga.
After 20 years also you have to pay rent... but when you purchased it will be yours after that loan period
Yes and its will be beneficial for your kids too when they grow up as they won't have to worry about buying or renting anymore...whereas kids of renters will alway pay rent and so as their kids and thereafter unless someone buys a property.
Owning a house was better earlier since most people had government jobs,job security and pension.Nowadays,with most people working in private companies do not have job security so owning is risky affair..
Govt job is transferable also...
Abhishek Raj that’s fine but there is security of job till the last breath and moreover in case of job transfer we can rent the owned place.
Good points but i would defer in terms of rent amount....
If you observe rent amount always hovers around 4 to 5 % of the asset value... so for 25k rent that comes to around 75lacs. Now to own this it will occur an EMI of 40-45k.
Best approach is defer the purchase of flat towards later stage of life... If you follow the correct cycle of stock markets u will end up earning 15-17% annually at present... which makes initially renting a best approach...