Someone bought a property for ₹40L and sold it at his desired price of ₹80L.
He was happy! But he could've made better returns by selling it at ₹78L.
Curious? Human mind is wired to talk in absolute numbers rather than
percentages.
He bought property 8 years back and sold it for ₹80L, which gave him an
annualized return of 9%.
But he started finding a buyer 6 months back and at that time, he got an offer
of ₹78L from a prospective buyer.
He refused.
Had he accepted the offer, his returns would have been 9.3% annualized.
That gain is the value of his time.
He got just ₹2L more after 6 months of wait. That reduced his returns.
Can you guess return on a property someone bought in 1980 for ₹5L and sold it
for ₹2Cr in 2020?
Just 9.7%.
Stocks gave higher returns - Sensex was a no-brainer which has given more than
13% during the same time.
Percentages act as an eye-opener when you're investing.
Tip: When calculating returns on a property, make sure you include capital gains
tax, registry fee, brokerage, and other charges involved.
What are your thoughts on this?
......................
What return expectations should you keep with equity Mutual Funds?
Find out in Mutual Fund Excellence Program https://bit.ly/39fx6ag
It is a 3 days live workshop costing ₹499.
Originally posted by Anupam Roongta on LinkedIn
link: linkedin.com/in/anupamroongta
He was happy! But he could've made better returns by selling it at ₹78L.
Curious? Human mind is wired to talk in absolute numbers rather than
percentages.
He bought property 8 years back and sold it for ₹80L, which gave him an
annualized return of 9%.
But he started finding a buyer 6 months back and at that time, he got an offer
of ₹78L from a prospective buyer.
He refused.
Had he accepted the offer, his returns would have been 9.3% annualized.
That gain is the value of his time.
He got just ₹2L more after 6 months of wait. That reduced his returns.
Can you guess return on a property someone bought in 1980 for ₹5L and sold it
for ₹2Cr in 2020?
Just 9.7%.
Stocks gave higher returns - Sensex was a no-brainer which has given more than
13% during the same time.
Percentages act as an eye-opener when you're investing.
Tip: When calculating returns on a property, make sure you include capital gains
tax, registry fee, brokerage, and other charges involved.
What are your thoughts on this?
......................
What return expectations should you keep with equity Mutual Funds?
Find out in Mutual Fund Excellence Program https://bit.ly/39fx6ag
It is a 3 days live workshop costing ₹499.
Originally posted by Anupam Roongta on LinkedIn
link: linkedin.com/in/anupamroongta
