For all those investing…

[Peruthopaniemundhi]

2 minutes ago, pandu123b said:

bro just do it and then think

thst is this generation funda 😀

Antae burn hands, invest in Pharma stock that is manufacturing burn healing ointments and then go to pharmacy and buy that ointment antav 😎

[Peruthopaniemundhi]

13 minutes ago, pakeer_saab said:

if you manage to add depreciation to the calculation that comes from tax purposes, it will turn positive but still shot of 25K  from interest for sure

Question on this, say I claim depreciation for 5 years, I sell investment home after 5 years, would I be taxed on profit or should the depreciation for 5 years will be added as taxable income at the end of 6th year since we sold the property?

[dealmaster]

1 hour ago, Peruthopaniemundhi said:

For all those buying investment homes, could you please help me about what I am missing here. 
say for instance we are buying a town home (single car garage) for $360k. 
 

Home Value: $

Down payment: $ %

Loan amount: $

Interest rate: %

Loan Term: years

Start Date:  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 

Property Tax: $/yr

PMI: %

Home Ins:$/yr

Monthly HOA:$

$2,459.40

monthly payment 

Down payment $90,000.

typically rent for these homes will be $1800 to $2000. Eyla chusina every month min. $700 negative cash flow and it could be more based off HOA, taxes, and maintenance cost. 

so if we do a math for 5 years of investing. 
negative cash flow + maintenance cost for every year is $9000. If interest rates decrease, rents increase, then average negative flow is ~$7500. Which is ~$38,000 loss for 5 years.

Now, if the $90k used in down payment is put in bank at 5.5% rate this year and if economy is on positive mode then it may decrease, on an average for 5 years we gain $25,000. 
 

After 5 years, if we decide to sell the investment property, it may be sold for $420k, 5% for realtor commission($21k), $6k is paid off towards principal, so the total profit here is $420k-$360k - $21k = $39k is profit if we subtract negative cash flow and maintenance then the net profit is

$1k

vs 

bank interest rate profit is $25k

additionally, we have to manage tenant and go through maintenance process.

if above is all true, why all the desi people are running behind investment homes. I am I missing something?

 

 

2k ki rents ekkada bro. Now min 3000 to 4k unnayi decent school district lo

[Peruthopaniemundhi]

10 minutes ago, dealmaster said:

2k ki rents ekkada bro. Now min 3000 to 4k unnayi decent school district lo

But home price kudha adey range lo untayi kadha…

[dealmaster]

1 minute ago, Peruthopaniemundhi said:

But home price kudha adey range lo untayi kadha…

Ya true.

[no01]

mana EMI lo principal kuda included kada....when we sell the house, appreciation tho paatu principal is ours kada...did u calculate that as well?

[Peruthopaniemundhi]

8 minutes ago, no01 said:

mana EMI lo principal kuda included kada....when we sell the house, appreciation tho paatu principal is ours kada...did u calculate that as well?

Yes. 5 years lo $6000 is going towards principal. 

[Peruthopaniemundhi]

1 hour ago, Vaaaampire said:

If a property appraises just by 20% in 5 yrs, then its bad investment.

 

on avge 5 years lo 40-50% appraise ayye places loney invest cheyyali

Ekkada 40-50% avuthundhi bro.. ?

[EyBisa]

@Sonu_Patel

[Pencil_Rubber]

3 hours ago, FrustratedVuncle said:

2k rent vastunna house 360k petti konadam is worst investment at > 7% interest rates. 

this ^ .... also, for 360K property rent should be atleast $2.5K minimum

[Pencil_Rubber]

also, real estate investment is long term ... we should look at 10 years min only then we will see profits.... any property investment with less than 7 years means loss

[ganguly183]

I think one thing you are missing in the calculation is the EMI (towards principal) your renter is paying. You need to add that to your profits. For example: 5 years lo renter paid 20K towards principal then the profit will be 420-340(360-20 that you already paid by renting)

[Peruthopaniemundhi]

59 minutes ago, Pencil_Rubber said:

this ^ .... also, for 360K property rent should be atleast $2.5K minimum

Ekkada vasthundhi bro $360k to $2500 rent.

[Peruthopaniemundhi]

33 minutes ago, ganguly183 said:

I think one thing you are missing in the calculation is the EMI (towards principal) your renter is paying. You need to add that to your profits. For example: 5 years lo renter paid 20K towards principal then the profit will be 420-340(360-20 that you already paid by renting)

5 years ki $6k profit add cheysa bro..  

[Peruthopaniemundhi]

58 minutes ago, Pencil_Rubber said:

also, real estate investment is long term ... we should look at 10 years min only then we will see profits.... any property investment with less than 7 years means loss

But US lo after 7 years antha appreciation undadhu kadha..