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    Rent Vs Buy Calculator - Assetyogi

    Uploaded by

    jayonline_4u
    This document compares the costs and returns of renting vs buying a property over a 20 year period. Renting would cost a total of Rs. 6,589,723 in rent payments over 20 years. Buying the Rs. 5,000,000 property would cost a total of Rs. 8,983,951 after 20 years including interest, maintenance, and taxes. However, the property value is projected to appreciate to Rs. 23,304,786, resulting in a net savings of Rs. 14,320,835 from buying over the 20 year period compared to renting.

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    Rent Vs Buy Calculator - Assetyogi

    Uploaded by

    jayonline_4u
    58 views10 pages
    This document compares the costs and returns of renting vs buying a property over a 20 year period. Renting would cost a total of Rs. 6,589,723 in rent payments over 20 years. Buying the Rs. 5,000,000 property would cost a total of Rs. 8,983,951 after 20 years including interest, maintenance, and taxes. However, the property value is projected to appreciate to Rs. 23,304,786, resulting in a net savings of Rs. 14,320,835 from buying over the 20 year period compared to renting.

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    Original Title

    Rent vs Buy Calculator - Assetyogi

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    This document compares the costs and returns of renting vs buying a property over a 20 year period. Renting would cost a total of Rs. 6,589,723 in rent payments over 20 years. Buying the Rs. 5,000,000 property would cost a total of Rs. 8,983,951 after 20 years including interest, maintenance, and taxes. However, the property value is projected to appreciate to Rs. 23,304,786, resulting in a net savings of Rs. 14,320,835 from buying over the 20 year period compared to renting.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    58 views10 pages

    Rent Vs Buy Calculator - Assetyogi

    Uploaded by

    jayonline_4u
    This document compares the costs and returns of renting vs buying a property over a 20 year period. Renting would cost a total of Rs. 6,589,723 in rent payments over 20 years. Buying the Rs. 5,000,000 property would cost a total of Rs. 8,983,951 after 20 years including interest, maintenance, and taxes. However, the property value is projected to appreciate to Rs. 23,304,786, resulting in a net savings of Rs. 14,320,835 from buying over the 20 year period compared to renting.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    Rent Vs Buy Calculator

    Analysis Period 20 Years

    Renting

    Monthly Rent 15,000


    HRA Tax Benefit 20%
    Effective Monthly Rent 12,000

    Effective Annual Rent (R ) 144,000


    Annual Rental Increase 8%
    Rent (Analysis Period) (R') 6,589,723

    Returns on Savings

    Downpayment (D) 1,000,000


    Monthly Savings (S)
    (Actual EMI - Monthly Rent)
    (Calculation Below) 18,458
    Expected Returns% 12%

    After Analysis Period


    FV of Downpayment (D') 9,646,293
    FV of Monthly Savings (S')
    (Detailed Calculation Below) 6,494,412

    Net Savings (D'+S'-R') 9,550,982

    Future Value of Monthly Savings - Calculation


    Year 1 2
    Annual EMI 401,491 401,491
    Annual Rent 180,000 194,400
    EMI - Rent 221,491 207,091
    NPV (EMI-Rent) 673,255
    FV of NPV of (EMI-Rent) 6,494,412
    By: AssetYogi
    Enter Figures in Yellow Cells

    Buying

    Property Price (P) 5,000,000


    Downpayment 1,000,000
    Loan Amount 4,000,000
    Loan Interest Rate 8%
    Actual EMI (E ) 33,458
    Tax Bracket 20%
    Effective Interest Rate 6.4%
    Effective EMI (E') 29,588

    Total Interest Payment


    (@ Effective Interest Rate) (I) 3,101,096

    Maintenance Per Month 2,000


    Annual Increase 6%
    Total Maintenance During
    Analysis Period (M) 882,854

    Total Costs (C = P+I+M) 8,983,951

    Sell After Analysis Period


    Annual Appreciation 8%
    FV of Property (P') 23,304,786

    Net Savings (P'-C) 14,320,835


    3 4 5 6
    401,491 401,491 401,491 401,491
    209,952 226,748 244,888 264,479
    191,539 174,743 156,603 137,012
    7 8 9 10 11 12
    401,491 401,491 401,491 401,491 401,491 401,491
    285,637 308,488 333,167 359,821 388,606 419,695
    115,854 93,003 68,324 41,670 12,885 -18,204
    13 14 15 16 17 18
    401,491 401,491 401,491 401,491 401,491 401,491
    453,271 489,532 528,695 570,990 616,670 666,003
    -51,779 -88,041 -127,204 -169,499 -215,178 -264,512
    19 20 21 22 23 24
    401,491 401,491 - - - -
    719,284 776,826 - - - -
    -317,792 -375,335 - - - -
    25 26 27 28 29 30
    - - - - - -
    - - - - - -
    - - - - - -
    31 32 33 34 35 36
    - - - - - -
    - - - - - -
    - - - - - -
    37 38 39 40
    - - - -
    - - - -
    - - - -

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