The Untold Truth About Homeownership: Hidden Costs & EMIs | FWS 70

"The only way to make money in real estate is if you buy with leverage and sell it within 3 to 4 years."

"If you sell it 5 years later for 1.5 crores, you're sitting on a 50 lakh profit. After accounting for the interest, expenses and other transaction charges, you could be sitting on a 40 lakh profit. 40 lakh profit on a 20 lakh capital investment. That is a 100% return on your capital in just 5 years."

"So staying on rent is better by 1.3 cr rupees if you are an idiot investor. But if I assume let's say 15% returns which is what the nifty average has been, you're going to be better off by 4.2 cr rupees. And if you are a pro investor who can generate 18 to 20% CAGR then you're going to have an extra 8.5 cr rupees."

"The Indian market has given a 15% CAGGR in the last 20 years. Some of the best performing mutual funds in India has given 18% CAGR."

"if you decide to buy a house 20 years later with that stock market profit you will be paying zero taxes as per section 54F."

"the EMI should not be more than 30% of your monthly inhand income."

"you need to have saved at least 20% of the value of the house as down payment."

"you need to have saved an additional 2 years worth of home loan EMIs as an emergency fund"

"House prices can also fluctuate by as much as 20 to 30% in a given year."