The property
All-in acquisition cost, not the base price: duty and interiors are capital too.
₹
₹ 5,00,000₹ 90 L₹ 20,00,00,000
₹
₹ 2,000₹ 3.12 L a year, at full occupancy₹ 10,00,000
₹
₹ 0Maintenance, property tax, repairs, broker renewal₹ 10,00,000
%
0 %1 months empty a year40 %
Against the locality
A yield number means nothing on its own. These are the medians we hold for real localities in our own coverage: the same figures the locality pages publish.
Civil Lines, Nagpur
Median gross yield 2.8% · Nagpur median 3.6% · ₹9,100/sq.ft
This property (net)2.52%
This property (gross)3.47%
Civil Lines median2.80%
At the Civil Lines median, a ₹ 90 L home lets for about ₹ 21,000 a month. Your rent assumption is well above that: check comparable listings before you underwrite it.
Net rental yield
2.52%
Gross 3.47% before costs and vacancy
Rent collected a year
After 8% vacancy
₹ 2.87 L
Holding cost
− ₹ 60,000
Net income a year
₹ 2.27 L
Payback on capital
Rent alone, ignoring appreciation
39.6 years
Indian residential yields sit at 2.5–4%. That is below a fixed deposit, which is why the case for buying rests on appreciation and on not paying rent, never on yield alone.
What this assumes
- ·Locality medians come from our own locality dataset: the same rows the locality pages render, not a national average.
- ·Rent is assumed flat. In practice it steps up 5–8% a year, which improves yield over the hold.
- ·Holding cost should include society maintenance, property tax, insurance and an honest repair reserve.
- ·Tax is not modelled: rental income is taxable at slab after a 30% standard deduction and the full interest deduction on a let-out property.
- ·Payback ignores appreciation and the loan: it is the capital-recovery period on rent alone.