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    Is buying a house really worth it?

    Posted By : Prerna Singh 1 year ago Queries

Comments (2)

  • Propscience 1 year ago

    The decision to rent or buy in a pure economic sense depends upon the rental yield visive mortgage rates. Generally, in India rental yields will vary at around 3% of the capital value of the property being rented whereas the mortgage rates would be between 7-8%. Based on only this financial metric, it would always seem better to rent than to buy. However, if other factors like tax breaks on housing loan interest payments, escalation of 4-5% p.a. on rents every year, cost of moving around along with other incidental expenses such as brokerage, shifting, etc are taken into consideration it might be more prudent to buy especially in a location which one feels one would be settled in for the next 5-10 years.

  • Propscience 1 year ago

    For long term purposes it’s better to hold for more than 2 years after which it is classified as a long term capital asset. However, from an appreciation POV it is more advisable to have a longer holding period of at least 8-12 years.

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