Rent Permonth 1st year 2nd year 3rd year Money taken from advance by house owner Total rent a) 8000.00 96000.00(=8000.00*12) 321000.00 =96000.00 + 102000.00 + 108000.00 + 15000.00 b) 8500.00 102000.00(=8500.00*12) c) 9000.00 108000.00(=9000.00*12) 15000.00 Assume that for each rent I am opening fixed deposit at a bank for 30 days. Example calculation: Month Principal Interest(3%) Round( Interest(3%)) Pay Rent Saved amount to deposit at post office Dec 8314.00 FIRST YEAR RENT from Jan to Dec Jan 8314.00 20.50 21.00 8000.00 335.00 335.00 Feb 8314.00 20.50 21.00 8000.00 2*335 670.00 Mar 8314.00 20.50 21.00 8000.00 3*335 1005.00 Apr 8314.00 20.50 21.00 8000.00 4*335 1340.00 May 8314.00 20.50 21.00 8000.00 5*335 1675.00 Jun 8314.00 20.50 21.00 8000.00 6*335 2010.00 Jul 8314.00 20.50 21.00 8000.00 7*335 2345.00 Aug 8314.00 20.50 21.00 8000.00 8*335 2680.00 Sep 8314.00 20.50 21.00 8000.00 9*335 3015.00 Open MIS 3000.00 at post office Oct 8314.00 20.50 21.00 8000.00 10*335 350.00 Nov 8314.00 20.50 21.00 8000.00 11*335 685.00 Dec 8718.00 20.50 21.00 8000.00 12*335 1020.00 Month Principal Interest(3%) Round( Interest(3%)) Pay Rent Saved amount to deposit at post office SECOND YEAR RENT Jan 8718.00 21.49643836 21 8500.00 239.00 1259.00 Feb 8718.00 21.49643836 21 8500.00 2*239.00 1498.00 Mar 8718.00 21.49643836 21 8500.00 3*239.00 1737.00 Apr 8718.00 21.49643836 21 8500.00 4*239.00 1976.00 May 8718.00 21.49643836 21 8500.00 5*239.00 2215.00 Jun 8718.00 21.49643836 21 8500.00 6*239.00 2454.00 Jul 8718.00 21.49643836 21 8500.00 7*239.00 2693.00 Aug 8718.00 21.49643836 21 8500.00 8*239.00 2932.00 Sep 8718.00 21.49643836 21 8500.00 9*239.00 3171.00 "Open MIS 3000.00 at post office Received 19*12 = 228.00 from MIS1 Oct 8718.00 21.49643836 21 8500.00 10*239.00 410.00 Nov 8718.00 21.49643836 21 8500.00 11*239.00 649.00 Dec 9125.00 21.49643836 21 8500.00 12*239.00 888.00 THIRD YEAR RENT Jan 9125.00 22.5 23 9000.00 148.00 1036.00 Feb 9125.00 22.5 23 9000.00 148.00 1184.00 Mar 9125.00 22.5 23 9000.00 148.00 1332.00 Apr 9125.00 22.5 23 9000.00 148.00 1480.00 May 9125.00 22.5 23 9000.00 148.00 1628.00 Jun 9125.00 22.5 23 9000.00 148.00 1776.00 Jul 9125.00 22.5 23 9000.00 148.00 1924.00 Aug 9125.00 22.5 23 9000.00 148.00 2072.00 Sep 9125.00 22.5 23 9000.00 148.00 2220.00 Received 228 * 2 = 456.00 at MIS1 and MIS2 Oct 9125.00 22.5 23 9000.00 148.00 2368.00 Nov 9125.00 22.5 23 9000.00 148.00 2516.00 Dec 9125.00 22.5 23 9000.00 148.00 2664.00 Saved 570.00 interest at MIS2 and MIS1 Saved 6000.00 Total amount saved till now = 570.00 + 6000.00 = 6570.00 Assume that we have 4 lakhs before going to rental house. MIS interest from 4 lakhs approximately after 3 years = 88812.00 interest Hence we have saved 88812.00 + 6570.00 = 95382.00 approximately 1 lakhs extra plus your old saved amount 4 lakhs. Tax free, no income to be given to house owner due to lease. I feel never ever use EMI to pay lease to house owner. RENT AND LEASE ADVANTAGE AND DISADVANTAGES Lease Lease Advantage Lease disadvantage Rent Advantages Rent Disadvantages 400000.00 1) No monthly rent 2) Owners used to start their business, bargain available when compared with rent 3) Obtaining back my lease amount back from owner. 1) Difficult/identify required house at lease 2) Lump of amount based on area. 3) Not easy to leave the house intermediately. 4) We will get 400000.00 OR 3.9 LAKHS OR 3.8 LAKHS WITHOUT ANY INTEREST. 1) Less amount when compared with lease 2) Easy to get 3) If required, we can leave that house 2/1 months after informing that to owner. 4) Get fixed deposit interest each month from bank on rent. 5) We have saved 4 LAKHS(IF ANY BEFORE STARTING RENT) + INTEREST ON 4 LAKHS(MIS POST OFFICE) INTEREST ON EACH RENT FIXED DEPOSIT AT BANK. APPROXIMATELY 95382.00 + 4 LAKHS = 5 LAKHS. 1) Advantage = 12 * monthlyRent or 10 * monthlyRent 2) Deduction of amount from advantage Example 15000.00 or 16000.00 when leaving the house 3) House owner may inform the rental person to leave the house any time. 4) Maintenance charge/paint charge/repair/garbage. No refund from rent amount

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