I'm playing on investment in the property or land. How to invest in property. Maybe this time I only focus to the first land (because of this personal experience I)
I see the overall macro-economic India good enough, and loan interest rates around 8,5-9,5 percent / year
And I how to invest in property think that this is the right time to take soil investment at home. And I have to make calculations and fortunately investing into this product.
What we need is a note.
1. Development value of land (Property Tax Value) from the previous years. How percent increase annually
2. look interest rate that banks provide for instance in the 9% / year
3. Assessing the location and the development of the region around, both in terms of infrastructure, etc. access.
Based on the point invest in property that I can buy a basic calculation formula as follows;
We Property Tax Value tough first year in previous years at least 3 years.
For example;
The price of land in a place Property Tax Value it in investment the United Nations showed 225,000 / m in year 1
in the years ke2 Property Tax Value increase to 270,000 / m viscous table etc.
Year 1 2 3 4 5
Property Tax Value 225.000 270.000 324.000 388.800 466.560
increasing 45.000 54.000 64.800 77.760 93.312
% 20 20 20 20 20 100
Means that the increase in invest the price of land for 5 years ahead will be increased 100% from the purchase price, I consider this reasonable, but if you can exceed increase of 100% in 5 years, meaning the land very potential.
how to invest in property If we take CLO (Credit Land Ownership), the interest that we spend is 9% / year. Means we still have the difference between interest rates of 20% -9% = 11% / year. Now it is 11% of our profits
Win if we can buy land, cash, so we can benefit large, can even approach / exceed the increase of Property Tax Value itself.
So, only 1 word how to invest in property if the price of land / property can increase 100% in 5 years means long-term investment Recommended "buy" to this investment.
Hopefully useful
