Quote:
Originally Posted by roshan.sharda
The assumption is wrong and I it can be expected that real estate prices will go up by atleaset 7% annualy. Even it this case the prices will go up to RS 2.32 crores in 20 years for a 6 Lac flat currently.
Also the the rents will increase by 10% say for next ten years annually given indian economy is growing and then by 8%, so a rent of 2.64 lcas (RS 22000 monthly) will be payable for the falt will become 11.10 Lcas in next 20 years.
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You are making some seriously flawed assumptions here. Firstly, you are assuming that real estate will always go up by 7% annually for the next 20 years - very very unlikely sir!
No economy in the world can grow at the rate of 8% for 10-15 years. Secondly, rent will never increase at the same rate as real estate because rent paid depends on actual earnings as opposed to a loan which is given out on future earnings
