Well, we are talking about Rahul, who comes from a middle class family. Now Rahul got entangled in another thing. First he watched my video on how you should plan your house. But then he heard a lot of people on the internet who are saying that you should live on rent. You should buy your house and especially Rahul is young. People are saying that you should not buy a house at a young age. When we buy a house at a young age it is a very wrong decision and they tell you all kinds of things that why we are saying that if you buy a house at a young age then right now you are earning less. In future you will earn more. You don’t know where you will live in your life. See, two things are clear here. When we talk about renting then living on rent makes sense for those who are in a job which is unstable or you know that you have to transfer from time to time. Today you are in one city, tomorrow you have to go to another city or you have to move to another city then it is absolutely fine that you live on rent. Don’t think too much about it. But the issue here is of two things.
The person who is going to work somewhere, he is going alone with his family.
His parents will also be there.
Where are they staying? They are staying on rent.
So he will need his permanent address somewhere.
Okay, so let’s talk about those people who are saying this on the internet.
Now Rahul heard them.
So what did Rahul hear? I will buy a house worth 1 crore.
So someone is saying this on the internet.
Whether this happens in reality or not, you will also see.
But someone is saying on the internet that if there is a house worth 1 crore, then you will get 3% annual rent.
According to rent, this is 3%, 4%.
So if you invest at 3%, you will have to pay Rs 1000 rent every month.
3 lakh, that is Rs 25000 per month. And you can live in a house worth 1 crore. Living on rent has become very cheap. You can travel wherever you are. You can live in any corner of India. How much rent do you get for a house worth Rs 1 crore? Comment below. I won’t tell you. If you find a house worth Rs 1 crore in a good area, according to me you will get Rs 40,000 to 50,000 on rent. You won’t get less than this. You go and see. Find out. And then why don’t people tell that this rent also increases every year. After every 11 months your rent will increase by 10%. They don’t tell. So this was also important to understand. So now it is Rs 40,000 to 50,000 according to me. I am not saying that Rahul should just listen to me or listen to the people whose advice he has listened to. Rahul has to take his own decision.
Don’t trust me or anyone else.
Use your mind.
But my job is still to show Rahul the right path.
See, I have made good wealth from real estate.
I am still an active investor in real estate.
And I know the boom in real estate very well.
I have seen people who bought a property worth Rs 10 crore and sold it for Rs 15 crore.
After that they reinvested.
Then there was growth.
And the person who starts with Rs 10 crore and reaches Rs 15, 20, 30, 50, 100 crore, I have seen that practically in life.
And I am also experiencing the same kind of compounding.
There is growth in the stock market as well, but there is a huge barrier to entry in real estate.
So people say there was a stock in the stock market that grew 3 times.
I will say great and he will say your real estate has doubled. Let’s talk about the last Covid. So in the last 3 years, where I live, in metros, and this has happened everywhere. In 3 years, in most of the growing cities and especially where I live, money has doubled in the last 3 years. Real estate prices have doubled. A house worth 1 crore has become 2 crore. And if a person says that if he had invested 1 crore in a stock, it would have become 3 crore. I also ask the same question, did you invest? Did you invest? We invested 10 crores in real estate, it became 1 crore. Did you invest 10 crores? Did it become 20 crores? You invested 1 lakh, it became 2 lakhs and you got 3 lakhs, but you are jumping. I am saying absolutely, but how much did you invest? Real estate of course has a huge amount, but after that there are some formulas which you can use. You are living on rent today. I think if you build a house at a young age, then for the rest of your life the only thought will be that I have my own house. You could not build a house at a young age, you got married at a young age. After that you can’t make a house in your life. What are you giving to the kids? There is no house. We are living on rent and the rent is increasing.
So you have to work hard and pay the rent.
Just see those people who live on rent are rich.
Those who make property and give house on rent to people are rich.
So making property is a good decision.