I Bought 3 Flats in Bangalore and Made 1 Crore Profit

Shashank Udupa

8 Mar 202413:43

Summary

TLDRIn this video, the creator discusses his strategic house purchases in Bangalore during 2022, detailing the research, loan amounts, and interest paid. He reveals how he utilized tax benefits and managed to sell one property for a profit within a year. He also shares insights on the current value and potential rental income of his second property, emphasizing the importance of diversifying investments between equity and real estate for long-term wealth creation. The video concludes with an invitation to join the creator's YouTube community for further insights and a master class on stock market investing.

Takeaways

🏡 The speaker purchased two houses in Bangalore in July 2022, both being 104 sq ft² apartments with a total cost of approximately 68 lakhs each.
💼 The actual buying cost included loan interest, processing charges, and miscellaneous expenses, amounting to around 7.66 lakhs for each house.
📈 The speaker emphasizes the importance of considering the total cost, not just the price per square foot, when evaluating property investments.
💰 A 20% down payment was made, with an 80% loan amount of about 54 lakhs for each property.
🔄 The first house was sold in October 2023 for 86 lakhs, resulting in a net profit of approximately 22.76% within 12-14 months.
📊 The second house, after paying all costs and clearing the loan, is valued at 1.15 crores, showing a 59.1% net gain in two years.
🏦 The speaker cleared the loan for the second house using profits from the stock market, specifically the Nifty Equity market.
📝 Rental income is viewed as a form of 'dividend' from the property, with the potential to increase over time, providing a passive income stream.
📉 The speaker discusses tax benefits from home loan interest, which can offset the cost of owning property and contribute to overall profitability.
🏘️ The speaker's strategy includes diversifying investments between equity and real estate to mitigate risks and ensure a steady income.
🌐 The video concludes with an invitation to join the speaker's YouTube community for further insights and to consider his upcoming stock market master class.

Q & A

When did the speaker purchase the two houses in Bangalore?
-The speaker purchased the two houses in Bangalore in July 2022.
What was the total buying cost of each house mentioned in the script?
-The total buying cost of each house was approximately 68 lakhs.
What was the interest paid on the loan for the first house?
-The interest paid on the loan for the first house was 2 and a half lakhs.
How much was the loan processing charge for each house?
-The loan processing charge for each house was 11,800, inclusive of GST.
What was the speaker's down payment percentage for the houses?
-The speaker's down payment was 20% for the houses.
When was the first house sold and at what price?
-The first house was sold in October 2023 for 86 lakhs.
What was the net profit percentage from buying and selling the first house?
-The net profit percentage from buying and selling the first house was approximately 22.76%.
How much interest was paid on the loan for the second house?
-The interest paid on the loan for the second house was 250,000.
What is the current value of the second house, excluding tax benefits?
-The current value of the second house, excluding tax benefits, is approximately 1.15 crores.
How much rental income does the speaker expect from the second house?
-The speaker expects a rental income of 35,000 rupees per month from the second house.
What is the speaker's perspective on buying a house to live in versus as an investment?
-The speaker views buying a house to live in as a liability since it doesn't yield any income, and prefers to invest in real estate to create passive income sources.