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  • Own House or Rental - Decision

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    Devaraj Dhanakotti
    21 views2 pages
    Renting a house for 25 years would cost between Rs. 3 crore to Rs. 4.5 crore depending on the monthly rent amount. Owning a similar house over 25 years would cost between Rs. 7.86 crore to Rs. 9.43 crore through EMIs and interest payments, resulting in savings of Rs. 4.9 crore to Rs. 6.4 crore through renting. Additionally, the owned property could appreciate in value up to Rs. 4.7 crore over 25 years through land appreciation, making ownership a potentially better long term investment.

    Original Description:

    Decision is simple. Rental house in City and own land in rural areas

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    Renting a house for 25 years would cost between Rs. 3 crore to Rs. 4.5 crore depending on the monthly rent amount. Owning a similar house over 25 years would cost between Rs. 7.86 crore to Rs. 9.43 crore through EMIs and interest payments, resulting in savings of Rs. 4.9 crore to Rs. 6.4 crore through renting. Additionally, the owned property could appreciate in value up to Rs. 4.7 crore over 25 years through land appreciation, making ownership a potentially better long term investment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    21 views2 pages

    Own House or Rental - Decision

    Uploaded by

    Devaraj Dhanakotti
    Renting a house for 25 years would cost between Rs. 3 crore to Rs. 4.5 crore depending on the monthly rent amount. Owning a similar house over 25 years would cost between Rs. 7.86 crore to Rs. 9.43 crore through EMIs and interest payments, resulting in savings of Rs. 4.9 crore to Rs. 6.4 crore through renting. Additionally, the owned property could appreciate in value up to Rs. 4.7 crore over 25 years through land appreciation, making ownership a potentially better long term investment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 2

    Rental House Details Own House Details Principle (P) 3000000 3000000

    Total loan amount 3600000 3300000 3000000 Interest Rate (R) 0.007916666667 9.5 % 0.007083333333 8.5 %
    Rent per Month 10000 12000 15000 EMI per month 31453 26211 26210 No.of tenure (Month) 300 25 Years 300 25 Years
    Rent Per Year 120000 144000 180000 EMI per year 377437 314531 314520 EMI 26210.89983 24156.8125
    10 Years 1200000 1440000 1800000 10 years 3774370 3145308 3145200
    25 Years 3000000 3600000 4500000 25 years 9435924 7863270 7863000
    Interest Paid 5835924 4563270 4863000
    Principle (P) 2000000 2000000
    Interest Rate (R) 0.007916666667 9.5 % 0.007083333333 8.5 %
    Savings thru Rental Life Own House Appreciation No.of tenure (Month) 300 25 Years 300 25 Years
    EMI 17473.93322 16104.54167
    25 years rent 3000000 3600000 4500000 Land Area 450 450
    25 years emi 9435924 9435924 9435924 Price per Sq.ft 3000 3000
    Saving by rent 6435924 5835924 4935924 Total Price 1350000 1350000
    Appreciation/year 300 200 Principle (P) 3600000 3600000
    Appreciation 10 years 3000 2000 Interest Rate (R) 0.007916666667 9.5 % 0.007916666667 9.5 %
    Land Price in 10 years 2700000 2250000 No.of tenure (Month) 300 25 Years 300 25 Years
    Appreciation 25 years 7500 5000 EMI 31453.07979 31453.07979
    Land Price in 25 years 4725000 3600000

    Gain from own house Principle (P) 3300000 3300000


    Best Case Worst Case Interest Rate (R) 0.007916666667 9.5 % 0.007083333333 8.5 %
    Land price in 25 years 4725000 3600000 No.of tenure (Month) 300 25 Years 300 25 Years
    25 years emi 9435924 9435924 EMI 28831.98981 26572.49375
    Total Gain -4710924 -5835924
    Builder Floor Entrance Facing Sq.ft Rate/sq.ft Flat Cost Registration Total
    Thara Venus Homes 1 West 900 4050 3645000 0 3645000
    MS Constructions 1 South 961 3800 3651800 0 3651800
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