Rented Flat to Ready to move in: Here You Go! - Torbit Consulting

1. Rented Flat to Ready to move in: Here You Go!

2. Saadharan Kumar was your regular average guy. He had a regular family of wife & two kids and lived in a regular rented apartment. He goes to a regular 9 to 6 job and earns a salary of Rs.18 lakh per year. Like any other person, he also receives a House Rent Allowance at Rs.2,40,000 per annum. He also contributes to Employee Provident Scheme @ 12% of his salary. Thus far, he has saved Rs.10 lakh in his name and about Rs.6 lakh in his wife’s name that provides him an average interest of about 6% per annum.

3. Come 1st of every month, Saadharan Kumar is perturbed by the huge rent he has to pay! And, the Rent agreement is due for renewal and the landlord is likely to seek a 10% increase. He also constantly ponders about the dream that he and his wife Saamanya had of moving into their own house. But that dream gets shattered each time he sees his bank statement and realizes that he pays 30% of his income in rent and income tax.

4. It was another such day when Saadharan Kumar was sitting dejected on a park bench. His bank statement in one hand and property brochures in the other, hoping against hope to find a way to realize his dreams. Just then his old friend Chanakya, who was out on his evening run, spotted him staring into the oblivion, miserable and lonely. Chanakya approached him to understand what was wrong. Saadharan could not control his emotions after seeing his old friend and shared his cause of despair.

5. Saadharan Kumar finds that he does not stand to gain from the new tax regime and would stick to the old regime with a tax payout of Rs.3,79,080. Saadharan Kumar glances through the tax calculations and is again perturbed over the 2 major outflows viz., of house rent and income tax which aggregates to about Rs.6.20 lakh! Chanakyawho has an avid interest in financial matters and current affairs, informs Saadharan Kumar about the Government’s initiatives to help the common man acquire a house of his own. Chanakya informs him about the increase in housing loan interest deduction which was earlier Rs.2 lakh and now an additional deduction of Rs.1.50 lakh is being given under a new section -80EEA.

6. They discuss that in Delhi NCR, he can get a comfortable 2 BHK house for about Rs.45 lakh. Chanakya suggested that the savings in his wife’s name can meet any contingencies and Saadharan can put in his savings of Rs.10 lakh as down payment and seek a housing loan of Rs.35 lakh. Chanakya introduced him to a helpful online EMI calculator. EMI for a loan term of 20 years at an interest rate of 8.2% on Rs.35 lakh would work out to approximately Rs.29,700, ie. a payout of Rs.3,56,400 in a year.

7. They discuss that in Delhi NCR, he can get a comfortable 2 BHK house for about Rs.45 lakh. Chanakya suggested that the savings in his wife’s name can meet any contingencies and Saadharan can put in his savings of Rs.10 lakh as down payment and seek a housing loan of Rs.35 lakh. Chanakya introduced him to a helpful online EMI calculator. EMI for a loan term of 20 years at an interest rate of 8.2% on Rs.35 lakh would work out to approximately Rs.29,700, ie. a payout of Rs.3,56,400 in a year.

8. Thank You Contact No- 9818305383 Address-Sector-150, Noida, U.P, India, 201310 Source-https://www.torbitconsulting.com/rented-flat-to-ready-to-move-in-here-you-go/