I am currently in India enjoying my vacation. Couple of weeks back I met my friend who lives in Keelkattalai, Chennai. Near his place there was a new apartment complex that was being constructed. When asked about the price I was told that it costs Rs 6,200 per sqft. At this price if you want…
Real estate is one of the major asset classes that can earn a decent rate of return on the Invested Capital provided you paid the right price and got at the right location. Rate of Return = (Annual Rental Income – Expenses)/Purchase Price Income The rent you receive every month is the income generated by the…
Depreciation is a non cash expense that reduces the value of an asset as a result of wear and tear, age or obsolescence. Most assets lose their value over time and must be replaced once the end of their useful life is reached. Imagine you have own an Ice cream Business. You purchased the ice…
Seeking Wisdom 