AVOID WRONG DECISION - Invest Or Repay Loan India in 2022

[@torahulj]

Today's question - Is renting a house better decision or buying a house? Drop your views in the comments and I will select BEST 5 answers. All 5 people will get my LinkedIn Growth Course FREE.

[@lincoln5]

Renting offers more flexibility if we travel a lot and owning is better if we are planning to settle in same place for a long time and for a large family

[@torahulj]

@@lincoln5 - Great perspective. Your comment noted :-)

[@tibrewalankur]

Renting is always better during initial year of career. It may also holds good if you keep changing your city during later period of career. If perspective is investment in real estate instead of emotional then again renting is much better than buying.

[@balajin4063]

In India Renting a house is always better. I come to this conclusion after i bought a flat in Bangalore on loan

[@zacsonskaria]

The savings due to prepayment on a home loan are considered over the entire duration of 20 years, whereas the SIP return is calculated for 13 years.

[@mohangupta13]

This is a massive miss above.. i was super confused initially.. but this is what is making everything look good in the video

[@debarghyamitra3266]

Exactly. I prepared an excel sheet for calculation. And at every XIRR return rate above loan interest rate, investing is being always more beneficial. Also, there's another thing. Say you put all your extra earnings to pay the loan back. You'll be able to close it in say 14 years. But you will end up with no money in your hands at that time. But if you invest it instead, by the end of those 14 years, you can anyways have plenty of money to close the loan of you wish to. You'll still have spare money in your hand. And by the end of the 20 years, you'll still be richer thanks to the power of compounding.

[@nitinrk7]

Dear Rahul, Investing in SIP is better even at 8 % as i understand. Putting 13 lakhs in SIP generates 10 lakhs additional , while prepaying 13 lakhs reduces the amount by 17 (while the net gain is only 4 lakhs) . So I don't agree to your point. Pls recalculate or help me understand.

[@AjitDsouza]

In my opinion, if you are stationed in one city for a very long time then having a permanent home is a good idea. Again, if you buy in a good locality in Mumbai prices are too high and you will get better apartment on rent at a decent price. If you invest in upcoming location which is not as expensive as established locations then it may be a good idea to purchase a house. If you love to stay and explore various cities across country/world then its better to rent a house. Additional point is if you already have your own house and thinking of investing in another house with home loan then I don't think its a good idea. Appreciation of real estate in top cities isn't great as it was before 2006. Better to invest in stock market and mutual fund. Mutual fund has given me +16% return in last 12 years using SIP.

[@torahulj]

Hi Ajit - Great perspective. Thanks for sharing. I have picked your answer as one of the top answer wand want to offer you my LinkedIn course free. Please let me know your email address so that I can send you the details of the course. Please note that I never ask for money or account details so be careful of fraud alerts. Have a great day. Cheers Rahul

[@rameshrameshhg6257]

Hi

[@ameenurahman8705]

Depends on the location. If it is in metro/ tourist location,it would not be a good idea to buy a home since it cost overbought range. Real estate is not giving good return comparing to other mode of investment as per latest study. But if we are planning to buy home in emerging city or by analysing future demand in certain location, then it would be better to buy a home rather than taking rented home as it's return on investment would increase drastically later.

[@torahulj]

Great Thought process @ameenu Rehman. Your comment noted :-)

[@SurajGupta-zx5lj]

In short paying loan first is better if one can't manage loan rate + 3 percent from stock market

[@DebajyotiBagchi]

You have not considered the tax benefits at all. If it is a join loan and both comes under 30% tax bracket this equation would change drastically.

[@PrakherSharma]

Very relevant topic and immensely helpful!!

[@torahulj]

Thanks Bro. Hope all is well at your end?

[@bhanuchandraguduru8879]

Is the Homeloan advantage intentionally left out for Incometax purposes? Theoretically it can cover (1.5L in Principal and 2Lk as interest) and once you are in 30% zone, isn't it an advantage?

[@kewalramsaizal9445]

Good, but in developing country, we have to have HL, WHICH also provide exemption s for Income tax purpose. No doubt in first 7 years ,part payment, if possible, may be done to reduce tenure of HL

[@sachinsh9398]

Rahul, this was the video I was all looking for a long time now and trust me people out there making money promising il give that sheet this sheet which will help your financial analysis much better and what not. Really appreciate that you are educating a very big community here who doesn't even have any experience into finance. This means a lot to many in making their decision wise.

[@shrenikshah8882]

How do I find the tenure of months reduces or not? If I don't get the statment from the bank?.

[@kewalramsaizal9445]

Both having a top floor to own and lower floor s on renting

[@bonuramesh7328]

What about personal loan and loan repayment best one

[@vajragulati1678]

Can you provide the excel sheet or make the customised calculation?

[@varun46v123]

Is this spreadsheet available anywhere or link shared . Please help me. Thanks for the great work.

[@pankajgupta6503]

please sir share this excel sheet

[@kewalramsaizal9445]

An excellent analysis with cost and benefit examples🎉🎉🎉

[@guruh5433]

Saving tax on home loan is nowhere considered

[@jayeshjain1971]

Owning a house is better.

[@torahulj]

Thanks for haring your views Jayesh. :-)

[@chintangoyani2809]

You have not considered tax on investment ? Any impact on tax from the invested amount? Say i invest 1 lac at 8% interest for 1 year i will have to pay tax in the returns..

[@raghuraghavendra5979]

Hey rahul thanks for the video i have a doubt is it good to buy a used car by taking personal loan rather than going for new car Ford ecosport price 8.00 lakhs Tenure 5 years Please suggest me Thanks & Regards, Raghu

[@PradipNongkhlaw]

If I know this before I would have cleared the loan by now. Is there any affect in cibil score if I repayment the loan

[@girishjagdale4011]

Good topic which is question for every house owner that also does other investments. On seperate note, investment done at right time makes much more difference whether it's buying share or house. You need to identify the potential in both case and you enjoy good returns with lesser debt/investment.

[@torahulj]

Well said @Girish...Your comment noted :-)

[@virupaksh]

Renting a house is better

[@tibrewalankur]

Best part of your video is conclusion part with advice which I didn't find in any other video where you explain when we should do lumpsum payment. It is beneficial to do any lumpsum in initial tenure of loan only not during future years. Does it all also applies for yearly prepayment, meaning we should do yearly prepayment only during initial tenure and later we should rather do investment for such annual prepayments. Pls advise. Thanks again for knowledge sharing.

[@torahulj]

Hi Ankur - yes that's correct. First few years yearly prepayments makes the most financial sense.

[@davids.k1534]

Woah! Rahul the effort you put , it's incredible ! The excel breakdown is just mind-blowing ! Thanks for giving this financial literacy

[@torahulj]

Glad you liked it David, thanks for watching and sharing your feedback, means a lot.

[@subhsworld5603]

Hi Rahul.. Would you suggest me to go for 20% DP on a house right now or wait some more years and accumulate atleast 50% DP??

[@torahulj]

My view is to accumulate more. 50% minimum.

[@sureshkumarc.k.4463]

Renting is better

[@ShreyashBohara]

can you share your gsheet? I'd like to use my numbers in your calculator

[@SaiKiran-es3hp]

I have this same question from the day I have take the home loan. Below are my views on this : In my case, I have taken a home loan of 21,50,000 at a ROI of 10.75% for a tenure of 15 years (which I didn't knew it was higher as I took this when I was 22/23 years old and I didn't knew much about it back then, but just leave it aside and now my ROI has decreased to 8.55% and tenure has been reduced to 11 years ), so I am paying an EMI of around 23,656/month. At my age taking a home loan is a very big achievement (according to me and my parents and almost the same with like minded people around me) , but after 1 year or so, I was thinking if I had just rented a home for 10,000/month and put the remaining amount in Mutual Funds for at least 10 years with a monthly SIP of 14,000 (which I would have saved if I had just rented the house), then I would have more than the amount after 10 years and I could/would have bought a more luxurious house and a new construction rather than a re-sale flat. But the thing is, there no better feeling than living in your own home where you don't care about a few holes in your room, paint according to your wish and not to deal with the owners and etcetera. At the end I would like to conclude that both are better, but you need to make sure that your emotions don't take over you. I am happy to own a home at this point because it is my parent's wish and I am happy to lose a few bucks if that brings happiness on their face as they are very proud of me🤩.

[@torahulj]

Amazing answer Sai Kiran. Thanks for sharing the details. I have picked your answer as one of the top answer and want to offer you my LinkedIn course free. Please let me know your email address so that I can send you the details of the course. Please note that I never ask for money or account details so be careful of fraud alerts. Have a great day. Cheers Rahul

[@ravisoft]

It is such a stupid video. While in home loan you included principle amount of 1 L and in investment you excluded 1L. How is it fair?

[@shrikant586]

Renting better

[@GauravBhagat-lt7bi]

You have a very big flaw in your assumption. Towards the end of this video you are using different time period of investment. Paying loan after after few years with lumpsump amount but investing from day 1. Can you double check and update the content as it seems to be misleading.

[@amit673]

Amazing research and information given. Thank you so much

[@SPSingh-ITS]

You seem to be fooling around with public. Showing different returns for different period of time. I feel pity on people like you who are struggling to meet two ends and doing KZbin to support family but teaching others to become rich.😂