I am Ankur, an Engineer with a government firm, a typical salaried person. I earn enough to make others envy. I purchased a flat for investment purposes back in 2015. It had a loan component of 27.8 Lakh INR and it was my first house. As young and uneducated I was, I liked the investment for first few years as it generated a decent amount of rent. I lived happily till one day stock market crashed. It was a totally unrelated phenomenon. However, what that did to me was it made me curious about personal finance. Long story short, I enrolled with a public school, made 4 times the fortune compared to market returns and also started looking forward to become financially independent much before the age of retirement.

It was then, that I made my asset and liability statement all by myself and reached onto a few conclusions. To avoid boring you further with details, I am listing my findings here for you all, the readers.

  1. Back in 2015, I had purchased a flat which was giving me 10500 in rent per month. While it was taking away 26644 per month. It was a net loss of 16144 per month. Six years later, I am earning 8500 and paying still 26644, making a loss of 18644 per month.
  2. Refinancing will help me achieve an emi of 14800 and net loss of 6300 per month.
  3. I recently shifted to a new city, looking for pan-country real estate now. 1 year back, I got opportunity to take 18L laon with expected yeild of 12K per month and 13892. It would have become an asset from 4th year, given the rent increases 10% per year.
  4. I recently started a sidekick which took away 18000 from me and has given me 24000 even in the pandemic year. Effectively it has put 500 per month into my pockets.
  5. May not be the best shape yet, still on the way to financial recovery.

This post is just an example of how each one of you can also do your own financial analysis and be on the track to building wealth, or at least, off the track of wealth loss. Meet you with next post in a few days time. Stay tuned till then…