Quote:
Originally Posted by pcpune
Hence, to beat inflation and to break even - on an average which is 7% -- the property price needs to double by DEFAULT in 10 years.
Now, if you take a loan at 10%, the property price needs to appreciate atleast by 17% PER YEAR - JUST TO BREAK EVEN --- which is surely not going to happen over the next 3-5 years...
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If you are considering loan case then do not mix it up with inflation. If house is taken on loan of 10% and it is appriciating at 10% then it is break even. Even bit profit as one is saving on rent. So break even will be at around 8 to 9 % appriciation per year.