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Video Link:-
https://youtu.be/hPTrtp098vg
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www.rachanaranade.com
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Decision - What is better?RENT
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No of Years15
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RENTBUY
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Monthly Rent20,000Cost of Property7,500,000
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Tax Benefit30%Downpayment15%
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Effective Rent14,000Downpayment Amount1,125,000
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Annual Rent168,000Loan Amount6,375,000
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Interest rate for Loan7%
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Average Annual Rental Increment
7%Loan Duration15
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Total Rent for the period4,221,676EMI57,300
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Tax Bracket30%
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Downpayment Amount1,125,000Effective Interest rate for Loan4.9%
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Saving in Monthly EMI36,082Effective EMI50,082
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Rate of Return on investment10%
Total Net Interest Paid over the period
2,639,694
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Maintenance Cost0.35%
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Value of Downpayment saved5,010,659Maintenance Amount2,188
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Value of EMI saved14,954,766Annual Increase in Maintenance5%
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Total Maintenance over the period
584,695
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Net Benefit of Renting a House
15,743,750
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Total Cost of Buying the House10,724,388
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Increase in Property Value6%
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Value of Property after the period17,974,186
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Net Benefit of Buying a House7,249,798
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