Info Amount in Rs.

Buying price ₹ 10,000,000.00

down payment ₹ 1,500,000.00
tax amount ₹ 560,000.00
Registration fees ₹ 100,000.00
other closing fees ₹ 25,000.00
total initial CFs ₹ 12,185,000.00
Mortgage Loan period (in Yrs) 20
No. of Months in a year 12
total no. of payments (no of months) 240
0.09380689767098
Mortgage loan amount ₹ 8,500,000.00

Quoted IR 9%
Annual Effective interest rate 9.20%
Monthly effective Interest rate 0.74%
Monthly EMI ₹ 75,581.11

Apartment fees per month ₹ 5,000.00

property fees per month ₹ 4,800.00
repair and maintenance charges per month ₹ 1,000.00

Monthy expenses to buy villa ₹ 86,381.11

Monthly rental expebses saved ₹ 30,000.00
Adjusted Monthly expense to buy villa over rent amou ₹ 56,381.11
Opportunity loss per month on Initial cash outflow ₹ 16,088.42
Total excess cash out flow buying villa over rent ₹ 72,469.53

Present value of the Villa

Exhibit IV

Year Y-O-Y Price Growth

1 4.5%
2 5.4%
3 5.1%
4 8.8%
5 3.8%
6 7.7%
7 6.7%
8 -39.8%
9 1.8%
10 8.5%
11 11.3%
12 15.5%
13 7.8%
14 7.8%
15 8.3%
16 1.6%
17 4.9%
18 1.7%
19 -0.4%

Whether Sushant Should buy the villa?

Remarks

Remaining
monthly period
remaining left for the Year on Year
period of loan mortgage Property Value Year on year mortgage loan amount
in years payment over the periods outstanding
19 228 ₹ 10,446,915 ₹ 8,337,593
18 216 ₹ 11,015,248 ₹ 8,160,240
17 204 ₹ 11,576,039 ₹ 7,966,566
16 192 ₹ 12,595,314 ₹ 7,755,070
15 180 ₹ 13,076,800 ₹ 7,524,110
14 168 ₹ 14,082,775 ₹ 7,271,897
13 156 ₹ 15,027,211 ₹ 6,996,473
12 144 ₹ 9,050,000 ₹ 6,695,704
11 132 ₹ 9,212,773 ₹ 6,367,257
10 120 ₹ 9,995,358 ₹ 6,008,584
 9 108 ₹ 11,124,658 ₹ 5,616,904
8 96 ₹ 12,851,785 ₹ 5,189,180
7 84 ₹ 13,856,913 ₹ 4,722,094
6 72 ₹ 14,940,785 ₹ 4,212,025
5 60 ₹ 16,184,925 ₹ 3,655,017
4 48 ₹ 16,447,205 ₹ 3,046,750
3 36 ₹ 17,260,573 ₹ 2,382,508
2 24 ₹ 17,550,845 ₹ 1,657,138
1 12 ₹ 17,487,355 ₹ 865,017

Sushant Should buy the villa?

Realtor fees Closing fees
1.00% ₹ 25,000.00

Realtor Fees (1%

of the property Opportunnity Cost of initial Fund
value ) Closing fees Excess Cash Outflow sacrificed Future Value
₹ 104,469 ₹ 25,000 ₹ 905,731 ₹ 2,185,000.00 ₹ -1,110,878
₹ 110,152 ₹ 25,000 ₹ 1,894,812 ₹ 2,185,000.00 ₹ -1,359,957
₹ 115,760 ₹ 25,000 ₹ 2,974,913 ₹ 2,185,000.00 ₹ -1,691,201
₹ 125,953 ₹ 25,000 ₹ 4,154,410 ₹ 2,185,000.00 ₹ -1,650,119
₹ 130,768 ₹ 25,000 ₹ 5,442,451 ₹ 2,185,000.00 ₹ -2,230,529
₹ 140,828 ₹ 25,000 ₹ 6,849,023 ₹ 2,185,000.00 ₹ -2,388,973
₹ 150,272 ₹ 25,000 ₹ 6,087,440 ₹ 2,185,000.00 ₹ -416,975
₹ 90,500 ₹ 25,000 ₹ 10,062,399 ₹ 2,185,000.00 ₹ -10,008,603
₹ 92,128 ₹ 25,000 ₹ 11,894,122 ₹ 2,185,000.00 ₹ -11,350,734
₹ 99,954 ₹ 25,000 ₹ 13,894,410 ₹ 2,185,000.00 ₹ -12,217,589
₹ 111,247 ₹ 25,000 ₹ 9,565,978 ₹ 2,185,000.00 ₹ -6,379,471
₹ 128,518 ₹ 25,000 ₹ 18,464,154 ₹ 2,185,000.00 ₹ -13,140,066
₹ 138,569 ₹ 25,000 ₹ 21,069,048 ₹ 2,185,000.00 ₹ -14,282,799
₹ 149,408 ₹ 25,000 ₹ 23,913,659 ₹ 2,185,000.00 ₹ -15,544,307
₹ 161,849 ₹ 25,000 ₹ 27,020,044 ₹ 2,185,000.00 ₹ -16,861,985
₹ 164,472 ₹ 25,000 ₹ 30,412,294 ₹ 2,185,000.00 ₹ -19,386,312
₹ 172,606 ₹ 25,000 ₹ 34,116,717 ₹ 2,185,000.00 ₹ -21,621,258
₹ 175,508 ₹ 25,000 ₹ 38,162,038 ₹ 2,185,000.00 ₹ -24,653,840
₹ 174,874 ₹ 25,000 ₹ 42,579,631 ₹ 2,185,000.00 ₹ -28,342,166
Net Present Value
₹ -1,017,265
₹ -1,140,407
₹ -1,691,201
₹ -1,160,339
₹ -1,436,299
₹ -1,408,691
₹ -416,975
₹ -4,948,947
₹ -5,139,617
₹ -5,065,936
₹ -2,422,291
₹ -4,568,847
₹ -4,547,679
₹ -4,532,264
₹ -4,502,150
₹ -4,739,951
₹ -4,840,911
₹ -5,054,732
₹ -5,321,254