Taking Home Loan for Investment in Flat – Is it good idea?

POSTED BY harry.scorpion ON May 2, 2014 10:18 am COMMENTS (4)

Is 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.

4 replies on this article “Taking Home Loan for Investment in Flat – Is it good idea?”

  1. ashalanshu says:

    Dear Harry, price?

    Thanks

    Ashal

  2. harry.scorpion says:

    Thanks guys.
    I was expecting to keep the flat for 5-7 years.

  3. Raja says:

    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.

  4. ashalanshu says:

    Dear Harry, at what price you intend to sell the flat and after how many years?

    Thanks

    Ashal

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