Is real estate a fantastic Investment?
If yes, are the math tools available to prove that?
If no, are the math tools available to prove that point of view?
The jury is still out there to judge these questions and there are no clear answers. However I found an article in the Times of India (it is an old article, May 2014)..and am reproducing it here.
Read the article carefully – when it is considering the costs, the author has considered only 6% costs – in reality there is a 6% stamp duty, there are society entry fee, brokerage, if the paper work is done by a lawyer then the lawyer’s fees…in all practically the costs come to about 8% – and some times it can go higher to about 10%.
While considering the rentals, he has assumed A FULL OCCUPANCY with a clear annual increase – nice assumption, rarely holds true.
He has ignored society charges – assuming Rs. 1000 a month – that also changes the equation by a bit.
Instead of saving money in a bank fd, if the person were to keep it in an EQUITY mutual fund, the whole gain is TAX FREE….
Post Footer automatically generated by Add Post Footer Plugin for wordpress.