I live in the city of dreams, Mumbai💫
My flat costs ₹7 Crores but I pay just ₹1.5 Lakhs in rent
Buying it on EMI would've costed me ₹5 Lakhs p.m. even after paying ₹1.4 Crores in down payment🤯
Here's why I won't buy a house🧵👇
My flat costs ₹7 Crores but I pay just ₹1.5 Lakhs in rent
Buying it on EMI would've costed me ₹5 Lakhs p.m. even after paying ₹1.4 Crores in down payment🤯
Here's why I won't buy a house🧵👇
[1] Rent is not burnt
Rather than buying, if I invest:
🔶₹1.4 Cr of Down-Payment and
🔶₹3.5L (EMI less Rent) p.m
say, in Nifty 50 Index Fund which gets me 12% p.a. for next 20 yrs?
I'll have ₹48.13 Cr🤯
Even if flat grows at 7% p.a., it'll be worth ₹27 Cr📉
Rather than buying, if I invest:
🔶₹1.4 Cr of Down-Payment and
🔶₹3.5L (EMI less Rent) p.m
say, in Nifty 50 Index Fund which gets me 12% p.a. for next 20 yrs?
I'll have ₹48.13 Cr🤯
Even if flat grows at 7% p.a., it'll be worth ₹27 Cr📉
[2] Buy a Home after having FIRE score
How much money you need to never ever worry about money?
Me: ₹6 Crores!
At 10% growth I get 60L p.a
I need 30L a year to live the dream life and another 30L reinvested to match 5% inflation
After 20 yrs, I can have that house + ₹20Cr
How much money you need to never ever worry about money?
Me: ₹6 Crores!
At 10% growth I get 60L p.a
I need 30L a year to live the dream life and another 30L reinvested to match 5% inflation
After 20 yrs, I can have that house + ₹20Cr
[3] Disproportionate Asset Allocation
If I buy a house worth ₹7 Crores today,
Most of my net worth will be allocated in a flat
A flat is generally a laggard in terms of capital appreciation
What for? Saving just ~2% per year?
If I buy a house worth ₹7 Crores today,
Most of my net worth will be allocated in a flat
A flat is generally a laggard in terms of capital appreciation
What for? Saving just ~2% per year?
[4] Is it just about the EMIs?
Did you forget that buying a house comes with:
🔶Registry [4-7%]
🔶Brokerage [1-2%]
🔶Heavy & recurring repair & maintenance
🔶Annual Property Taxes
and what not!
Did you forget that buying a house comes with:
🔶Registry [4-7%]
🔶Brokerage [1-2%]
🔶Heavy & recurring repair & maintenance
🔶Annual Property Taxes
and what not!
[5] More clarity over which city to live
Right now, I am in Mumbai because of my work
What if I feel like shifting to Goa?🏖️ Or say, Manali?🏔️
Buying a house will lock me not just emotionally but financially as well
It might make more sense to buy a house in 40s
Right now, I am in Mumbai because of my work
What if I feel like shifting to Goa?🏖️ Or say, Manali?🏔️
Buying a house will lock me not just emotionally but financially as well
It might make more sense to buy a house in 40s
I appreciate that some of you might have very strong personal reasons to buy a house and I respect that
Just that, financially it might make more sense to defer this choice!
What's your opinion now?
Just that, financially it might make more sense to defer this choice!
What's your opinion now?
Like the content?
[1] Follow your man @financewsharan and hit the bell 🔔icon
[2] Retweet the first tweet👇
[1] Follow your man @financewsharan and hit the bell 🔔icon
[2] Retweet the first tweet👇
TL;DR
Kya phone ke aaya be?
It is an important life decision! So, do read the entire thread
Kya phone ke aaya be?
It is an important life decision! So, do read the entire thread
Disclaimer: Not investment advice. Please refer SEBI Registered investment advisor before taking any investment decision. This thread has been shared for the purpose of spreading awareness. Info has been curtailed for the sake of brevity
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