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    Is it better to invest in a new flat worth 1 CR or invest the same amount in Fixed deposit and stay on rent using the interest and invest the rest in recurring deposit?

    Posted By : Prerna Singh 1 year ago Discussions

Comments (1)

  • Propscience 1 year ago

    From a purely financial perspective, the interested earned on a fixed deposit of 1cr would be approximately 6lacs. Depending upon the tax slab you fall into you will need to pay anywhere between 1-2lacs as tax, leaving you with 4-5lacs for rent. This amount is sufficient today to rent a house worth 1cr. However, an important point to be noted is that real estate is an appreciating asset whereas a fixed deposit is not. So, over time you will slowly be downgraded to a lesser valued flat and will have to move. On this basis it is advisable to buy a flat and pay an EMI, especially if you are sure about the locality or city you want to live in.

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