Benefits of taking a loan | How to take loans to make money

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Taking a loan can be a dangerous game.
But if done smartly, you can make CRORES out of it.
Watch this video till the end to understand why I took a Rs. 1 crore loan to buy a villa in Goa instead of making a complete downpayment
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Attributions:
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Video Editor: Vallabh Salgaonkar

[@AkshatZayn]

►My new stock market course starts in October 2022 [SEATS FILLING FAST]: wisdomhatch.com/finance/ ______________________________________ ►Some of my favourite courses on upGrad: bit.ly/3BUHZeE #upgradnow #FFwithupGrad #Lifelonglearning

[@jasdeepsingh1107]

1cr ki emi 80 kaise bani ?

[@30secondsinformation78]

Hey Robert kiyosaki

[@30secondsinformation78]

@@jasdeepsingh1107 😂😂😂

[@freethinker7052]

@@jasdeepsingh1107 bhai pura video sahi se nahi dekhte ho kya ? 90 lac down payment kar diya h 10 lac p loan liya h

[@tig3ru361]

Hindi???

[@MrDumdon]

Akshat buys a villa in Goa , makes KZbin video and pays emi 😅

[@nikunjsingh8200]

Awesome line brother 😂

[@VishalSingh-dv2vg]

True

[@DENTT7]

Infinity loop😏

[@prakashth]

This is the only place where I disagree with him. What if the tenant stops paying. Property prices are not regulated in India. How can you say you will get 4 crores return?

[@mobilegamer66]

exactly this is what gonna happen.. income from youtube and by selling courses.. though good idea

[@doolanakshatram6169]

I was watching this video and then my neighbour came and we watched it together. He said that this video changed his life and touched his heart. I then went and rented a projector in a big field and all my villagers watched it and it changed their lives too. We all are so grateful. Thank You for this video….

[@samarth945]

Bruh XD

[@rahul-vg8pd]

😂

[@mathebulamkhize876]

I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 75K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a Fin-Advisor) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities.

[@mathebulamkhize876]

please who is the expert guiding you? i have lost so much as a beginner🥺 investing into stock without a proper guidiance of an expert.

[@mathebulamkhize876]

I just Googled his name and his website came up right away. It looks interesting so far. I'm going to book a call with him and let you know how it goes. Thanks

[@user-od6nj7bk5o]

Good luck spammer 😂😂😂😂😂

[@SOLIDGAMER110]

Just buy Fine organics Asain paints Varun beverages Dmart Jk cement Do long term invest in these stock atleast 5 year Be happy 😊😊

[@financewithabishek]

Then invest in mutual fund

[@akkitheone]

Few observations: The rental income attracts tax after standard deductions, house tax and interest payment. Considering 81k/m; gross rental is 972k. After standard deductions and say 10k house tax it net rental is 913k. Interest rate deductions 123k (8.45% for 10 year, 1 cr loan). Total rental income approx 800k. Tax on 800k is about 50k give or take. Although it doesnt dent the investment but would have been nice to cover these aspects also.

[@AnkitYadav-td6mg]

👌👌

[@Kentdillard]

Exceptional customer care, *911 Mike Help* truly dedicated to client satisfaction.

[@dipankarkaushik5285]

You can avail a standard deduction of 30%.

[@peggyturner2431]

After i made my first million I realized that when a stock starts booming chances of you finding out means you are quite late to the party, for this I make sure my CFA handles that, it's like turning your notifications to earn more millions.I Reserve much gratitude for Stephanie Priscilla Bonillo my humble advisor

[@philipcooper1636]

@@peggyturner2431 she is the best no doubt. she has made a tremendous mark in managing my portfolio

[@saurabhtewari9920]

ChatBot spammer spotted

[@AmanKumar-vq1vq]

Big bull's lesson #1- never put borrowed money in the markets. Earn and invest. You might regular a large capital but start small.

[@whalemurugun]

He is misleading everyone.

[@vikasvicky43]

Large business are generally made on leverage...

[@shreeyashrane]

Borrowing to invest in equity can be done but it doesn't make any sense. It is a long term game and to finance the borrowing for a long period isn't financially or psychologically healthy.

[@vipulkumarpatel4487]

The formula rich people uses to stay wealthy is : Buy, borrow and die. 1) Buy in recession or when it is cheap ( stoc , real estates) 2) borrow more money with assests they already have 3) die, inheritate assests ( not cash) to the next generation with company shares to save taxes and insurance is always there to protect the wealth anyways.

[@vipulkumarpatel4487]

@@whalemurugun , he is correct not misleading.

[@PrashantKg1996]

You won't get fixed interest on your loan at 8 percent... Its usually 2-3 percent higher than current floating interest. Also did you add annual tax, electric and water bill, furnishing cost, repair cost etc? It honestly seems too good to be true to get that much return from renting it on airbnb

[@alucardbalmond3480]

If it's too good to be true it ain't true. In India even if you are a politician you won't get a loan below 10%.

[@ghulamsarwar7649]

Even I thought the same

[@nikhilpachauri5761]

HE must have taken loan much earlier when interest rates were hovering around 6-6.5% for home loan. Only that video would have been made recently .

[@denverpereira8020]

I was waiting for someone else to point this out, and also as someone who has worked at an NBFC, the companies dont usually give out fixed rate loans.

[@nikhilpachauri5761]

@@pushkarerande123 rightly said. I had seen my father's business got crushed due to heavy debt and we had a tough time to get out of it. Even when I started my consulting business to SMEs, I had tough time with processes for loan from bank and decided to rather go for boot strapping.

[@karenkatherine4956]

Starting early is the best way of getting ahead to build wealth, investing remains a priority. The stock/Crypto market has plenty of opportunities to earn a decent payouts, with the right skills and proper understanding of how the market works.

[@lucyameliaflynn4768]

Most people believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimum access to other currencies or gold/silver coins.

[@richardnicholas9654]

If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you, prevent inflation from eroding your savings, build generational wealth, and cultivate good habits and financial knowledge, you must be in the market.

[@castroguo4424]

Crypto currency and NFTS will outsmart the banking system in the nearest future serving as a global fiat. Already making over 85% profit from my current investment with the help of Josef Dennis's signal

[@noaholiver2946]

Trading with Josef Dennis signals completely altered my perspective on bitcoin because, despite everyone's complaints and fears, I was able to expand my portfolio from 6 BTC to 27 BTC in just 7 weeks with active trading…

[@karenkatherine4956]

You are right! I diversified my $400K portfolio across various market with the aid of an investment coach, Josef Dennis. I have been able to generate a little bit above $1.2m in net profit across high dividend yield stocks, ETF and bonds during this red season.

[@Gamer-monk.]

This man is a living testimony of everything you should NOT be doing with your money. Amazingly stupid ideas presented in a glorious package 😃😂

[@kalpagovekar7973]

Agree

[@vipulkumarpatel4487]

Disagree , Sir. Think about this scenario. Govt. scheme in all over the world is usually not reliable as it is design to generate the cash for the govt. and to compensate the subsidies for poor in order to get votes for elections and interest rates are not usually under the Govt. control. RBI and Govt are two different institutions.

[@aaminsaan4978]

Bhai aap hi bta do kya krna chyye fr ?

[@Gamer-monk.]

@@aaminsaan4978 Simple, get financial education from books, not social influencers. And then apply your own brain to make future proof decisions, involving delayed gratification and sensible investing into stocks, not real estate or gold.

[@rawtrader8841]

😂😂 agreed

[@VITSKamatsGroup]

Are you crazy who has 90L to do Downpayment??

[@shubhammishra518]

Not for you bro. Stay out of it!

[@Kunal3824]

Verification done by Public sector banks only, be careful with pvt banks

[@MrManojHirway]

Good analysis but I think 400% returns in 10 years (26% CAGR) is not realistic for real estate in today's scenario.

[@snmn77]

It's 100% , not 400%.. from 2 cr to 4 cr

[@EVL_GAMING]

@@snmn77 it's 300% he used 1cr not 2

[@VishalSinghYouTube]

Don’t forget the revenue he’ll make from this video 😂

[@EVL_GAMING]

@@VishalSinghKZbin may b 3emi 😅

[@0Kings0]

What are you saying bro i earned 100% profit in just one year on my plot

[@bharatsharma2907]

Hi @akshat can you please explain me this, 1 cr Loan for 20 years at 8% interest would also cost you an EMI of ₹83.6k, Thus even after 10 years you would still have to pay EMIs for next 10 years, and thus you can’t sell the house to make a profit of 4cr! ( please enlighten me, if I am missing something) ( also, considering it was a fixed loan the interest rate would have been much higher)

[@kpuneeth83]

When you said after 10 years you are selling the property 4x... But you didn't still close your principal loan amount that is still pending and still is not less than 80-90 lakhs... What about that

[@abishekbaskar6519]

One correction bank does its verification with the papers u have submitted, so if there are legal disputes that comes for eg after year or two bank doesn't guarantee it nor it takes responsibility. So a bank loan sanction does not guarantee that the property is safe. Its better to do ur own verification with a very good lawyer and there are several firms who does this for you

[@deepakbalhara8103]

MISLEADING VIDEO ( no offence): Two points- 1. For Rs 80,000 EMI you are getting Rs 80,000 rent. Net is NOT zero as you said. You will be paying salary to caretaker and to pay monthly maintenance cost. 2. Return is not 4X after 10 years as you will be paying huge amounts of money as pending loan amount in foreclosure of your loan. Wish to have your insights on these points for everyone’s benefit.

[@karthikg9]

Also, on top of operational costs, there are lots of risks associated with Airbnb business for those you need to buy insurances (for cases that is not covered by Airbnb) and there will be a low season in the 10 year period so I am not not sure if your 80k pm figure is adjusted to those scenarios. Note. I myself an Airbnb place owner

[@nvghorawat]

Selling for 4 crore in 10 years does not mean 4x as there will be balance loan of roughly 75L that also needs to be paid.

[@hiteshnankani644]

A brilliant strategy. The only cons: The taxes. The profits earned are taxed. Which results in a net negative situation in terms of profit earned.

[@tiat3456]

Is sub-renting services/Airbnb manager provided by Airbnb? Are there any risks associated with sub-renting? Are maintenance costs taken care by Airbnb manager (from their pocket)? If not, how much is the monthly/yearly maintenance cost of such villa? Also, will it vary how much the Airbnb manager pays to you as there might be off season where there are no customers or you have made a fixed deal/agreement for a year wherein the manager will be paying 81k irrespective of off season?

[@PRAMODYVshastry]

Am I the only one who is wondering how he will clear a 1cr loan by paying EMI of 80k for just 120 months!!

[@SMaheshKumarmyprofile]

Yes I am totally surprised how he missed giving the key input on what was the credit in loan amount and how much he paid as interest to bank and even after that he assumed he double the money…. crap

[@zakariasagor4707]

Me too

[@kishoremarathe1147]

You need to take in to consideration the Indexation while calculating profit/loss from house property.

[@shami_fin]

Finally the explanations are on a clean background rather than corner on your webpage👍🏼

[@BiswadeepDebNandyStrikethrough]

Was waiting for this topic for ages . Thank you !!

[@ajithmoni1712]

Great content ... Very well summarized ... I m glad unlike others u covered all aspects of investment, House, Gold and Stocks and the important fact that it is good to take a loan(debt) provided u are investing it in a good asset.

[@akshats.247.]

ᴛʜᴀɴᴋs 👆ғᴏʀ ᴡᴀᴛᴄʜɪɴɢ☝️ ғᴏʀ ᴍᴇɴᴛᴏʀsʜɪᴘ, ɪɴғᴏʀᴍᴀᴛɪᴏɴ ᴀɴᴅ ɢᴜɪᴅᴀɴᴄᴇs ᴡʜᴀsᴀᴘ ᴍᴇ ᴅɪʀᴇᴄᴛ.

[@subhankar.prabir]

Could you please elaborate your AIRBNB investment journey? And the 81K cash flow claculation too,. Also would like to have a glimpse of your property.

[@nitinrao3541]

Awesome video...few things.. 1. Time value of money calc. 2. Loan emi paying from business. By the time we close loan of 20yrs we allready paid bank double.

[@mridulparashar1515]

Two questions around this investment Akshat. Today you are in Goa but what happens when you relocate to another city. Managing a property in another city is daunting. How do you overcome this ? Did you buy this property as an individual or as a firm ?

[@RPAAVANPHANINDRA]

Hi Akshat, Since the Airbnb returns pays the EMI for the loan for the Villa, You would not be over leveraged, right. ? So as long as one can pay the down payment, Can one take multiple such Villas on Loan and still never be considered over leveraged, right?

[@alancan83]

It depends on your age as well. The younger you are more % of loan of your salary can be taken . Becos ur salary increases rapidly when u r young. When i was young i had taken alsmost 70% loan and as i grew older it had become 20%

[@pkmatta]

Somewhat Agree. But don't agree on 4x return. 1Cr loan with 80K EMI means in 10 years still 66 lakhs of outstanding principal is left. So it can be 3x but not 4x

[@gaurav3907]

Your Rent will also go up, again considering rent increase of only 6% , your loan O/s will be zero.

[@raghuhr2162]

If we need to buy a property to generate higher income we will have to pay more money leading higher emi .

[@shankha1982]

The calculation of 4x growth is absolutely incorrect - with a loan of 1cr, 7.5-8% rate of interest and EMI of 81k, the loan tenure will be approx. 20 yrs and after 10 yrs, you need to repay approx. 65-80L from the money you make by selling off the villa (~ 4cr) - so effectively, you have not grown 4x with your investment but approx. 3-3.5x

[@vasila1]

but he already paid 90L as down payment from the Loan amount, so he got 10 months of EMI

[@sanjeevgunda6294]

RAJAT, YOU ARE CORRECT

[@shankha1982]

@@vasila1 the price of the house is 1.9 cr, downpayment of 90L plus 1 cr loan amount

[@SUGGYAN1356]

Undoubtedly, one of the best videos in KZbin to understand personal debt and investments, especially for newly salaried employees... Thanks a ton for this amazing video!

[@twinkal1438]

this type of dangerous business/investment idea is a reason for inflation.

[@SUGGYAN1356]

​@@twinkal1438Agree but a small inflation rate is beneficial for the growth of an economy...😅

[@vickyAlways]

@@SUGGYAN1356 this will ruin the borrower's life

[@SUGGYAN1356]

@@vickyAlways How? There's always an element of risk. You must be capable/intelligent enough about how to manage funds in all types of situations... After that you need courage to take risk. Either stay poor or take risk, choice is upon everyone...

[@vickyAlways]

@@SUGGYAN1356 not everyone gets 81k rent monthly guaranteed and if montly income didn't generate u will be in loss. don't blindly believe any youtuber

[@venugopalreddyperam6966]

Hi shrivastava, few points is Bank is not giving loan on not simply based on property, it is based on customer paying ability. If property is in dispute bank is not worry about it. Bank loaned property is demolished by developing authority which is at place of lake ,this plot is given loan by bank.2) Banks can give loan with fixed interest only for few years ie) 1 or 3 years

[@venugopalreddyperam6966]

Loan given by bank to flat

[@keshav212121]

Just 1 question, the whole concept of taking a loan is you don't have that money, but in your case 90% is already paid up, you just took loan on 10% to safeguard your property title. With the interest rates prevailaing you will always have a negative cash flow if you do only 20% downpayment. So this video title should be, take loan even if you have money rather than when to take a loan.

[@arbitrorealtors4526]

In my whole life … first time ever i have seen such a great video with so simplified explanations on real difference between asset and liability including genral rule to calculate along with leverage calculation…. Thanks a lot … this kind of video will make many people to overcome from their earlier taken bad decisions as well it will help to take finacial good decisions for their bright future…. Thanks Thanks Thanks….

[@abhi8580]

Hahaha...... This is a joke..... airbnb 81k for 1 month ..... even a 5 star charges less ..... where are the details.....the whole basis of rent is flawed.....

[@phaneendramuttigi]

Agree Car is a liability, Recently i started car pooling in Bangalore since companies started calling back there employees,Since i travel all the days to week i get riders on regular basis which is actually generating me good returns at least to clear my Fuel and service charge

[@pradeep2kedar]

U have business mind 😊 finding opportunities everywhere, everyday

[@jayeshdani8738]

beautifully explained, thank for such valuable financial lessons. love it...

[@user-vj7fp9vw9p]

This EMI works out for Tenure is 20 years. If we sell villa for 4 cr after 10 years Around 70 lakhs loan loan outstanding we have to clear

[@ksiddharth9475]

Hey, in case of MBA, don't you add 10 lac salary of 2 years which you are leaving for MBA. That will make 30/5 = 6. Anyone planning MBA should take this into consideration.

[@biratbhowmick7291]

I'm going for MBA but can you tell me what is this 30/5? I didn't get it.

[@D4arkl0rd]

Hey Akshat, great video. Purely from a tax benefit point of view - the tax deduction one claim is 2L on the interest paid. Hence, it may make sense for for person to take only as much loan as interest payment of which can be claimed? completely claimed

[@sahil0506]

We buyed a plot in tear 3 city in 2020 Dec for 10,50,000 Rs and now it is worth 21,00,000 Rs. Means 40% return per year 🕉

[@pranavjayaprakasanut]

Tear 3 🤣🤣🤣

[@arijitpaul3652]

Hi Akshat, just wanted to take your suggestion in one of my real estate property...I have bought a flat in 2019, now the flat value is gone up around 2x because of the strategic location and immense development happened in that area. Now should I consider to sell out for good amount of capital gain or should I consider to rent it out ? Flat value is generally decaying over time and I won't be able to get good return or may be not able to sell it after few years. And considering the rental yield of 3-4% from residential property , which is also not very good. Kindly suggest your opinion here.would love to speak with you one to one if possible also.. thank you.

[@bharathtn9323]

Hi Akshat idea is conventional and looks cool but the difficult part is choosing the safest & guaranteed, assured stable income assets..could you pls support to list & recommend a list of any type of safest assets which can immediately start paying you to nullify the EMI (with a downpayment ranging from 10L to 90L) and also has a 1x,2x,3x,4x growth down the line after 5,10,15 years..etc..( basically request is downsizing of amount but idea and concept remains same)

[@hiteshnankani644]

bro I have idea, but the issue is just one. You like me would be in 30% slab. I made profitable plans but with the coming of Taxes, they all turned non-profitable.

[@hiteshnankani644]

also, I had concerns about quick liquidation, another reason for not opting.

[@vickyAlways]

@@hiteshnankani644 shameless indian govt is increasing taxes everywhere more n more with each passing year

[@harshteck]

Your rental income is taxable at 30% and also year around generating consistent income is tough, the figures don’t add up

[@manojpawar007]

You explained the concepts so simply. Great work.

[@NeerajParabOfficial]

why not put 2 cr in FD and earn 1lakh 15K per month ?

[@akbarmohamedali9147]

You are eating the appraisal. Finally inflation will eat the value of 2 CR. But appreciation in real estate will be compounding. He is taking returns standing outside of appreciation.

[@rammohan6880]

In previous video you were talking about its not worth to invest at all in real estate except commercial properties because real estate returns will not going to provide exceptional returns Now you changed your opinion! Tell me which one to follow!

[@D4arkl0rd]

It is a commercial property for him. Important is to understand that this property is going to generate a cash flow for him. Which is going to help him pay the loan EMI. He has calculated the loan amount smartly so that the cash flow offsets the EMI amount. His primary savings, year on year, will be the taxes and miscellaneous expenditures he'll be saving by tagging them to this business

[@harryb6568]

Akshat, agree with the concept of benefiting from leverage. But how do you get both Tax benefit on the interest and also claim business expense? Is the property classified as residential or commercial?

[@tkdevlop]

he is leasing out the property to himself

[@parthasahapbs]

Well explained...yeh mne pehli baar apka video deka hai or especially mujhe esa content bohut pasand hai ❤️❤️❤️ TQ sir for guidance

[@MovieMelodye]

Nice informative video.

[@mohamedrehan5364]

Buying a property on loan from bank doesn’t guarantee that the property doesn’t has any dispute. This is wrong assumption, in real life scenario dispute might be already ongoing from past 100 years but we might not be aware of it because the bank only does the verification of the property on the documents which is being provided by the seller .

[@vigneshhariharan9687]

This is true, I know a real example. People from TN know film producer RB Choudry who owned a property in Nungambakkam which was taken over by the government because it was a temple land. The beauty is the purchased loan using bank loan. So it depends on the local law.

[@ajaykumar-banker]

Excellent video. Good of you to share your project for generating additional cash flow and increasing your wealth through loan. I own a studio apartment in a Mall. Does Airbnb take them on rent also?

[@kashthkkr87]

CA would never classify car as an asset. We term it depreciating asset

[@radhikaraman8998]

One of your best videos on you tube. Very very informative. Especially about leverage and pay back period of a loan amount that we take. Thank you very much.

[@theimperfectyogi480]

Hey Akshat, there are lot of options to but commercial space which have a fixed rent that the developer promises for a 10 year period. The rental yeild is between 5-8% per month. Do you have any insight into these? Any traps that you can foresee?

[@tanvipardeshi8647]

Excellent content as usual Akshat! Keep it up 💯

[@cb7762]

Took loan to invest in crypto in 2019. Patiently holded assets for 2 years even in the 2020 crash and it turned on average 20x in 2021. Loans aren't bad ideas. It made me completely debt free.

[@nehak852]

Hey, Akshat, just a little doubt regarding flats. My dad has purchased a 14-year-old furnished flat in central Hyderabad for roughly 2Cr, and the UDS value is 1.8Cr. He invested 1Cr and took a loan for the remaining amount. The rent and EMI are almost the same. Would you consider this a good investment?

[@shubhamdixit7909]

Flats in General tend to grow too slow. The building becomes older as well as there are new projects coming up nearby. Now you have a 14 yr old flat and lets assume you took a 15 YR loan to payback. So, after 15 Years, lets assume that flat show a normal 7% growth and your flat value is 5.5 Cr. When you try to sell it, the buyer would have a 29 year old property valued at 5.5 Cr. He might also get good options in newer projects. So it would be a tough time selling it even if you make say 70 Lakhs of rent in all these years. Flat tend to not beat Inflation in very long term like say 15-20 years.

[@nehak852]

@@shubhamdixit7909 True, but we got the flat for almost the UDS amount. UDS can range from 1.8 to 2.34Cr.

[@KiranKumarAshok]

this would have been a good idea if it was a stand-alone independent building , with commercial being more attractive , for flats i see the value is not appreciated much on the property as it ages and i am not even sure as to who owns the land on which the infrastructure stands , also same investment in bangalore would have netted at-least x2 rentals

[@siddharthsagar2322]

Because the decision has already been made and the flat has already been purchased, there is no point in wondering whether it was a good decision or a bad one. Just see what happens and when you are at the same position in future make the decision for yourself NOT on the basis of HOW your dad's investment turned out to be, but on WHY it turned out to be so.

[@amans6504]

@@nehak852 Try to sell it in the next 3 years, hydrabad is going to be the next IT hub so use that opportunity, sell it.

[@dhawalpurohit]

All type of real estate , Easy to buy tough and time consuming to sell..

[@bibsbro77]

Where where you in the 90s Akshat ?? If only we had received such useful financial advices back then !!

[@kirtinair1864]

i am totaly naive to business dealings and hence asking - how do you hire a manager and expect they wont betray you with money or even with keeping the house in tact etc. Do you put any clause on them while hiring ?

[@ArunKumar-et7mn]

Hi Akshat, For 1cr even if we get 15% return annually we will be able to get 4.4cr in 10yrs. Even nifty 50index or stocks like hul , Asian paint etc would give that much of return. So point is .. why to take loan , pay EMI there is also risk of rental income , property value not appreciating and all.. so is it a good idea to take loan for assets like home and villa..

[@Ivy_Inquisitor]

But where do you get the 90 lakh capital? Bank is offering a loan on home but not for stock market investments right? You need to invest 35k+ for over 10 year! 10 years!!! with over 12% CAGR!!! to have a capital any where close to 90 Lakhs! By that time you would have paid back the loan amount, got tax benefits from interest and principal money you paid for the home. And the most fun part is if you owned a home away from your state then you would have got tax savings on HRA as well! You start with 6% on 90 lakhs not 15% on ~4.2 Lakhs(35k*12)!!! tell me which is more 15% on 4.2 L or 6% on 90 L. All this without paying a dime of rent if you stayed in the property or generating ~25-30k additional income every month. My salary is 24LPA and every bit of that 24 LPA is tax free because I am paying a home loan in a different city. Getting a Rent of 27k and in that 30% of it is not taxed because of yearly expenses on the property that we can claim during tax filing. Given that my property increases even by 6% CAGR I stand to gain for a 15 year sell off period, Than a SIP that gives 12% CAGR at 50k monthly(90L same money invested)!!! This doesn't mean I don't have a SIP portfolio but you see the importance of having a 90L capital upfront.

[@ayushwithasingle_a]

He is diversifying his portfolio by hedging his money in different investment instruments. Check out his portfolio video

[@Ivy_Inquisitor]

@@ayushwithasingle_a yes diversification is important which is exactly why I am suggesting home, and my question specific to people starting out without any capital remains and this is the reason to get yourself a home which is as stated an asset diversification. When you have no loan on house that could help avoid rent and helps in getting you tax benefits, it makes an awesome instrument even better than stocks.

[@ayushwithasingle_a]

@@Ivy_Inquisitor I am not sure about home, is it home for yourself or are we renting it out ? If it is being rented and generating positive cash flow, then why not ,go ahead. If you are living in it yourself then the decision becomes a bit complicated.

[@amoldatir8152]

In which city in India are we getting rent of 80,000/ month, for a one crore property ?...This is oversimplified version of Robert Kiyosaki's (Rich dad poor dad) theory of getting rich,which though applicable in us,is not possible in india...

[@chahem]

1.9 cr property hai not 1 crore

[@junaidchoudhary1063]

Delhi

[@SuperRandeep123]

First of all property is worth for 1.9 cr and he is talking about Air bnb rental in Air bnb you can earn lot more than rental income Ex. You rent your property for 4k/night and of your property rented for 20 days it will give 80k return and again the property he bought is in Goa where you will easly get 8-10k/night in Air bnb.

[@yournemesis8232]

blr

[@sagarbh6200]

How net flow will be zero ? As you need to pay salary monthly to Hired manager . please cover the above point.

[@lifeinabhasad]

hey i earn around 40 k per month and i am planning to invest in a managed farmland(which could also be constructed ,rented,the organic produce could be sold , i myself do organic farming too.). 0.25 acre would cost 14lakh should I take up a personal loan via my bank.? what. should be my considerations. I am a 25 year old person.

[@sagarraut7711]

clickbait is different content is different

[@akshat.s4579]

Thanks for watching and commenting send me a direct msg on what'sapp right away for more investment info and guidance. Thanks

[@akshat.s4579]

Endeavor to reach out 🔝🔝.

[@ashish19183]

Hi Akshat, nice and interesting video. Just wondering why did you take housing prices increase same as FD. House prices increased by ~ 5% YOY from 2011 to 2022. This will still give you around 3x returns (don't know, maybe Goa has better returns). Good work, keep it up

[@davelawson2564]

only a fool thinks 5% YOY gives 3x . LOL

[@hiteshnankani644]

idk how those stats are created, but they aren't practical. Practical. Noida. Prices have went 2x in last 3 years itself. (Most good properties) P.S. the transactions of property on paper has low growth rate.

[@ktapas]

Hi, it is very good idea as you have shared. Can i get some more information on Airbnb.

[@akshats.247.]

ᴛʜᴀɴᴋs 👆ғᴏʀ ᴡᴀᴛᴄʜɪɴɢ☝️ ғᴏʀ ᴍᴇɴᴛᴏʀsʜɪᴘ, ɪɴғᴏʀᴍᴀᴛɪᴏɴ ᴀɴᴅ ɢᴜɪᴅᴀɴᴄᴇs ᴡʜᴀsᴀᴘ ᴍᴇ ᴅɪʀᴇᴄᴛ.

[@ayushpatel8064]

Akshat, this is great content you have presented here, would you mind using professional mic for recording this.. I know u already have that as an asset, thanks.

[@niteshagarwal]

What rubbish is this - real estate is not liquid at all - it takes years to find a customer who is agreeing to buy at your 4x price? Kuch bhi 🙄

[@adityaprakashmallick5805]

Akshay never runs out of content🤣

[@alucardbalmond3480]

next content- why real estate is a bad idea and why I'm selling it.

[@adityaprakashmallick5805]

@@alucardbalmond3480 haha..... But i like akshat

[@therenaissanceman441]

Akshat always has great content but has left me confused this time. I kinda don't see the Goa villa as the right decision on the current valuation, a regular person would buy a 1.9 Cr villa with 20% down at 38 L and take a loan for 1.52 Cr. The EMI would be 1.3L and earning 81K. This is a negative EMI of 50K + the opportunity loss on 38L. Whichever way you do the math, you're losing money here. In your example, you make no money on 90L and so it effectively takes money from your pocket, then it is not an asset technically. I'd love to hear your thoughts.

[@umeshjagtap63]

80000 emi will be for 20 years loan Misguided information

[@rajsharma-yl4vb]

he is insane!!! not all villa worth 1.9 cr would fetch rental of 86000!!! my apartment in delhi is 2.5 cr and it fetches me rental of meagre 35000rs!! i wonder how guys like akshat are surviving!!

[@varuneshraslana1010]

Raj sharma, please watch the video properly, Akshat has clearly conveyed he has tied the villa with Airbnb that too with the help of Airbnb property manager who takes care of the daily chore, lets be sensible before commenting.

[@mrplayer9316]

Bro 35k per month rental ko meagre mat bolo. Ghar baithe mil raha hai bhai

[@amilrahman]

It works in goa as usually the renters are Russian!!! They don't buy only rent property for 6-12 months at a go!!!

[@amilrahman]

It is possible in goa as the renters are usually Russian!!! They are only there for rent and not a purchase!!!

[@kaay358]

I bought a villa in Goa for 1.8 cr and get 1.5-3 lakhs a month(fully furnished) just saying. Delhi has shit return rent wise. Even my investment in hyderabad of 60 lakhs gives me 35-45 k a month. Just by putting ac in it. Also I don't think residential property is a good investment unless you want to eventually live in it or use it personally. Better to invest that amount in an entrepreneurial venture. Just my point of view.

[@vishalbhatia6564]

hey akshat..really a admirer of your videos.. but you are saying that one should not buy any liabilities on even 0% emi but you yourself bought ac on emi couple of days back..why this hypocrisy..

[@KumarSomnath11]

I don't think, ac should be considered as a liability just like an iphone, or sports car, or sports bike, or any luxury item. AC is a necessary item right? It gives us comfort, nice sleep, etc.

[@vishalbhatia6564]

@@KumarSomnath11 the point is not if Ac is an asset or a liability .. the point is if someone is getting it on 0% why shouldn’t they convert it into emi and invest the money elsewhere to generate returns.

[@KumarSomnath11]

I answered based on what you said. I am unaware of what Akshat has done a couple of days back. As you said, (which Akshat had said) one should not buy any 'liabilities' on even 0% emi. So I was telling from the liabilities perspective. Yes, you should not buy a liability even on 0% emi, as the principal itself is the loss for you. But when you are buying an asset, e. g. - Home, then it's fine to take loan. But sometimes you need to buy a liability as well which is a necessary item, and you can't avoid it e.g.- a personal vehicle for commute, a laptop for personal work, a mobile for communication, or an ac to beat the heat, etc. All these are liabilities but these are necessary liabilities. So these become a kind of asset to you, as although they don't appreciate monetarily, yet they improve your life. The thing is, when you overspend on something just for its luxury factor, then it becomes a liability for you. Just buy what is sufficient for you. Do not overspend just because you can afford it even if it is available on 0% emi. Here buying an iphone is not the point. There are many people who use iphones for professional purposes and gain out of it. For them iphone is an asset. I hope I make sense to you. And the last thing is, there is no issue in buying a necessary item on 0% emi. But just make sure that, you don't overspend. I will give you an example. I needed a Bluetooth speaker for my laptop, it is having speaker issue. So while I was searching about it, I got to know about a sale on jbl website. So I was getting a cracking deal on jbl flip 6 with 0% emi option. I was almost ready to buy it as many of my friends hv jbl speakers and I have personally heard them. But then I stopped myself. I thought I just need them for hearing speeches, casual movie watching only. So I don't need to spend too much on a Bluetooth speaker. So I researched a little bit on KZbin and finally settled for Tribit. For 10k+ to direct 2k+. I am not saying that, it is better then jbl, which it is not! What I am saying is, sometimes we don't need the best. But just because we can afford it, we buy it. So, there is no issue in buying a necessary item at zero cost emi. Infact, it is a smart decision. You can invest the remaining amount and earn. But that also you need to check that where are you investing it. Bcaz the gst on emi interest portion is 18%. Also, many cards nowadays charge processing charges on emi.

[@vishalbhatia6564]

@@KumarSomnath11 i agree on what you said...but one should also not miss on joys of life ..if someone can afford a luxury product he or she should definitely buy it not to show off but as a token of appreciation...and no cost emi is a wonderful tool for that..but one should not take a loan especially on int. to buy stuff which they don't need.

[@KumarSomnath11]

Yes. You are right. Self reward is important. But I would suggest, don't spent much on materialistic things whose effect is shortlived. Spend on meaningful things, which elevates your human experience. Spend on things which gives you joy.

[@shailajapittie1440]

Akshat can you please make a video on you decision rationale for starting an Airbnb business in Goa. Would appreciate you sharing your findings

[@vishalyadav451]

9:48 He was ready for the Adani situation 🤣🤣🤣🤣

[@swapneshdash4501]

These shitty influrncers. The moment they smell equity goi g down , they move to real estate . And that 86000 its just pure luck. Please avoid them .

[@sahilagasgekar]

If its dangerous dont create the video

[@sahilagasgekar]

Ha malum hay

[@himanshumishra5088]

@@sahilagasgekar 😂😂

[@animeshpokhriyal203]

Tu mat dekh bhai Hume dekhne de aur seekhne de

[@MRPTrader7]

😂If it's dangerous then u please don't see video.

[@MRPTrader7]

@@suryavegeta12 😂😂👏🏻Epic

[@kalyanseela2078]

CA may tell the car is a depreciable asset, and give more info on the question..

[@nikhilreddy3504]

Akshat, Big fan of the wonderful content you share on YT. But, 4X is not correct in this case as there is an outstanding loan after 10 years and your loan will have not less than 70L outstanding after 10 years. It may be 3.3x, of course this is still a good return. thanks

[@prashanthedward1312]

Bullshit, you are talking fantasy, all your videos are the same, stop making fools, you can gain gullible public/ subscribers with such crap, some may even believe and harm themselves

[@prashanthedward1312]

@Aksha S. ㊉①⑤④①②⑦①⑦⑥⑧⑧ thanks, but no thanks, i am beginning to question your credibility and not out of spite but our of curiosity. If you believe and follow your own advise you must have lost a lot of money, if that is not the case then either i am a nutter and you are a genius or you are a good con job and i am a good spotter 😀

[@Lifeangel2908]

You are letting your property to airbnb manager on fixed rental income of 81k pm so that’s just income under house property, not your business income. You can get standard deduction u/s24 along with interest on loan.

[@sammyNpoo]

Investing in index should give 15 percent annually which is 4x in 10 years. Leverage should be taken for higher return bets I believe bcoz the risk is also high.

[@karanjoshi4671]

Very useful video. But in case of a relatively unorganized market like India, how to find a reliable Airbnb manager or a worthy property?

[@vedagrawal3184]

Getting an Interest rate of 7-8% that too fixed on a loan of 1cr is not possible tbh, also you're essentially blocking 90L from your own pocket. If you calculate returns on this 90L over 10 years @ 13-14%(this is Nifty50 CAGR as per past 20 years data) you can easily get 3.5cr so is it really worth going through all this trouble of buying, renting and re-selling.

[@ShubhaAgnihotriJulley]

Pl share a video which compares rent versus emi

[@althafyoosuf7945]

Hi Good video 🙏🏻

[@neelagopi]

Your math in 4x gain seems incorrect: 1Cr loan for 10yrs at 8.5% EMI is 124K. In case EMI is 80K, about 25yrs of tenure is required. After 10yrs, if you sell, assuming the 80K EMI scenario, you would have paid 1/3 of principle probably in 10yrs. So of the 4Cr, ~65-70L has to be paid to the bank, dropping your profit. Additionally, there are regular expenses like renovations (repaint), repairs, corpus funds (in a gated society), property tax, etc. These also impact overall returns. Tax liability is also missed: Income tax on rent 30% of 0.7*81K, (30% deduction), which will be more than 2L tax exemption on Home loan interest (note only max 2L irrespective of number of home loans) Tax on sale proceedings (LTCG after indexation), unless you reinvest in another residential property.

[@soumitsaha8913]

Hey Akshat - need a video on Business Loan and how to use it.

[@kiranvootori8101]

One hazy point in the calculation. You started off with 90L investment and leveraging 1Cr. EMI is being paid out using rent earned. A quick back calculation shows me that 80K EMI at interest rate of 7.5% is a 20 year loan. So, after 10 years when you sell the property at 4 Cr, you will have two people ready to take a cut from that. One is the bank, where you will have an outstanding of about 67 lakhs. Two, government, which will see that you made a profit of 2.1 Crore, if we go by past 10 year inflation index, inflation adjusted long term capital gain would be about 85 lakhs and a tax obligation of 17 lakhs. After paying these out, you will have 3.16 Crore on hand. That is about 3.5x of 90L that you started with. Please check this a calculation and let me know if I missed any points.

[@TamalGhosh]

Firstly Congrats! on your purchase of a Villa in Goa. In case it suits you then please make a video on how outsiders can buy property (Land n Bunglow in Goa) or what are the restrictions, n how to found your villa. Thanks!

[@venkateshyadav6605]

Hai sir , where is the villa you purchased. Is any other villas available

[@AmjuriLilly]

THIS IS ONE OF THE BEST VIDEO I HAVE EVER SEEN,THANKS A LOT.

[@CHHOTANDATTATREYA]

How can a loan of 1cr for 10years have emi 81k?? The math is not matching

[@seeyouninu]

Great video but where is the elaboration for the 81k rental income coming from the villa that has an emi of 80k/ m and property your was looking forward for it.

[@syams84]

7 percent fixed interest which planet you bought the property?

[@RP-nc6et]

Great video hands off but mere pass 50k hai usme kya hoga woh batau. This population is more in Indian than one who is taking 1 cr loan and rent the house in Airbnb.