POSTED BY May 2, 2014 10:18 am COMMENTS (4)
ONIs it a good idea to take a home loan to invest in a flat. The only intention is to sell the flat later. Do not intend to stay there.
Thinking of taking 80 % as loan.
Salary – 60 K per month. No other source of income.
Flat price – 35 lakh.
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Dear Harry, price?
Thanks
Ashal
Thanks guys.
I was expecting to keep the flat for 5-7 years.
Lets say you buy the flat at 35L and are able to clear the loan in 5 years (optimistic)
House cost – 35L
Interest Paid – 15L
Total invested – 50L
Do you think after 5 years you will be able to sell the house at least for 60-65L to make a profit of at least 10% after paying LT or ST capital gains? Rental income will give you only 2-3% returns.
If you don’t see property price appreciating that much, its better to invest in mutual funds, PPF, equities etc.
Dear Harry, at what price you intend to sell the flat and after how many years?
Thanks
Ashal