Quote:
Originally Posted by manna143
this all sounds good what I would say it is theroy.
becuase I will take one case, where my good friend was paying 5K rent in 2004 for 2BHK and then bought a house for 10L for 9K EMI.
Now his house is worth of 30L even after RE crash and paying 10K EMI...in this case, buying a house decision is wiser than pay the rent.
|
Get us some figs.
1.) What is the rent which your house will fetch right now? It makes sense to buy a 10L house than to pay INR 5000/month as rent even today, right now.
Formula is above:- Value of house max.= 200x; x=rent/month.
2.) What you did was in 2004. This made sense as it is accommodated in the above formula nor there existed any RE bubble at that time.
3.) If you want to purchase your own house again, will you buy it at INR 30L or pay rent?
Please don't get confused between PURCHASE IN 2004 Vs RENT IN 2009.
Quote:
|
Today it all depends on where you invest due to globalisation, development is happening at most of the location, you donot find place as same as it was looking 10 years back. but it was the case 20 years back, So it cannot be generalised. one of my friend bought a house in Dec-2007 in 25L and sold in 35L after a year before shifting to Pune. he didnot pay the rent for year and also gained 10L on top of it. What will you call this case ?
|
Fact remains that this happened before RE bubble burst in the country & economy showed signs of illness. Would he have been able to sell it today at INR 35L is the question?