Today I had a long discussion with one of my friend Mr. G.B. (GB). He is a really a hard working guy and just wants to earn more and more.... and ofcourse like a lot of us. So keeping up to our interest we were discussing about investing, investment scenario in India, some stock to invest in and all about money... Some days back I was in his position and was planning what to do to maximize my returns from my investments.
The case was a individual male with salary in seven digit, staying in Mumbai, Pune... spending on weekends and working all the week..... and OFCOURSE ending up paying up huge taxes to the government.
Now this is what we found out what one in this case should do and this has convinced me to invest in reality.
1. One earns about 50,000 pm (ofcourse MR GB may be earning much more than that)
2. Saves 100000 (80c) to reduce our tax liability
3. Stays in rented apartment paying about 12000 pm..
4. Tax comes out to 12000 pm approx.
Now if this guy decides to invest in reality...
1. Buy some property in Pune / Mumbai ( ofcourse he has to stay there )
2. The property cost varies but a 2BHK flat is available in 30 to 40 lacks... lets take 30 lacs
3. Now take a loan of 25 lacs and down payment of 5 lacs
So Savings
1. Some 4-5 k in income tax (lets take 5000)
2. Saving of the rent paid = 12000
3. Net saving 17000
4. A loan of 25 lacs for 20 yrs will have installment of Rs 25000 pm
Thus real expenditure per month is 8000... i.e is 8000*12 ( 96000 ) per annum... AND by the most conservative estimates if I assume that the market prices of the this property increases by Rs 100 per sqft
even then i end up spending nothing on my living expenses..... But remember all this calculation are valid for the first house where ones gonna live....
Bye Bye Happy investing ... if you have any investment ideas do share with me.....remember I also want to earn….
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