Mumbai Property Sale Sparks Debate on Real Estate Returns
Man buys Mumbai 2BHK for Rs 5 crore in 2019, sells at same price in 2026 — still makes ‘crazy returns’. Here’s how
The Economic TimesImage: The Economic Times
A Mumbai-based chartered accountant shared a case where his father sold a 2BHK flat for ₹5 crore, the same price it was purchased for in 2019. This sparked discussions online about whether the transaction constituted a loss or if other financial benefits, such as rental savings and tax efficiency, could justify the deal as a success.
- 01The property was bought for ₹5 crore in 2019 and sold for the same price in 2026.
- 02Potential savings on rent could amount to ₹80 lakh to ₹1.2 crore over seven years.
- 03Tax efficiency may play a role, as no capital gains tax would be incurred.
- 04Critics argue that inflation and costs could mean a real loss despite the unchanged sale price.
- 05The debate highlights differing views on what constitutes a successful real estate investment.
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A Mumbai-based chartered accountant has ignited a discussion regarding property investment returns after sharing that his father sold a 2BHK flat for ₹5 crore in 2026, the same price it was purchased for in 2019. While it may seem like there was no appreciation, many argue that the deal still yielded significant benefits. Users on social media pointed out that the family potentially saved on rent, which could range from ₹12–18 lakh annually, amounting to about ₹80 lakh to ₹1.2 crore over the seven years. Additionally, the absence of capital gains tax due to the unchanged sale price could further enhance the financial outcome. Some commenters suggested that rental income during the holding period and tax efficiency through indexation could also contribute to the overall returns. However, critics countered that when factoring in inflation, maintenance costs, and other expenses, the investment effectively resulted in a loss. They noted that had the same amount been invested in equity markets, it could have yielded much higher returns. The case underscores the complexity of evaluating real estate investments, where returns may not be solely based on price appreciation.
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The discussion highlights the complexities of real estate investments, influencing how potential buyers and sellers evaluate property value and returns.
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