Rental deal in Delhi: ₹75,980,000 purchase, ₹426,300/month — sanity check?

[kit.flint]

I am torn between testing the 6.7% yield first and stopping until the property description makes sense. This is advertised as a 1-bed coastal home in Delhi, although Delhi is not coastal. The quoted price is ₹75,980,000 and the proposed rent is ₹426,300 per month.

On paper I have included an empty period, management, normal upkeep and money for a substantial repair. Property tax, insurance, society charges and tenant-change costs are less certain. Should I ask first for evidence supporting the rent and location description, or obtain the actual owner charges and tax bill before doing any more modelling?

 

[BrightStone]

The gross calculation works: ₹426,300 over 12 months is ₹5,115,600, or roughly 6.7% of the purchase price. I would focus on recurring building or society charges, owner-paid services and turnover costs between tenants. Property tax needs an actual figure rather than an estimate, because even a plausible-looking percentage can distort the net result.

 

[small_quill]

Before debating an acceptable net yield, what does “coastal home in Delhi” mean here? Delhi is not coastal, so that description needs clarification. Also, is ₹426,300 signed rent, an agent’s expectation, or an asking figure? The answer matters more than fine-tuning the maintenance allowance. I’d also ask whether it is furnished and which building charges fall to the owner.

 

[clever_path]

That location inconsistency raises another question: what exactly is being valued and how easy would it be to resell? At ₹75,980,000, this is a large amount tied to one asset, so lease reliability and the exit market matter alongside the annual return.

I would not let the 6.7% gross figure set the target. Confirm the property description, get evidence for the ₹426,300 rent, and rebuild the calculation from itemised charges. Then test the same purchase with financing and a weaker letting period. A return that survives only with full rent and a smooth resale is not offering much protection.

 

[clear_wall]

A practical stress test would start with the known annual gross rent of ₹5,115,600, then separately deduct vacancy, management, property tax, building charges, insurance, routine work and the larger repair reserve. Add a tenant-turnover scenario rather than hiding it inside general maintenance. I would run at least one case with lower achieved rent as well, especially until the quoted ₹426,300 is supported by comparable leases.

 

[small_quill]

Ben’s point about concentration is fair, but financing could be the quickest way to decide whether this is viable. Sofia, is the ₹75,980,000 purchase all-cash or partly borrowed? Model changes in the interest cost and any vacancy while debt payments continue. An acceptable property-level net yield can still produce unattractive cash flow if the financing margin is thin.

 

[countTheRoom]

My next steps would be: resolve the Delhi/coastal description, verify the rent basis, obtain the current property-tax amount and building charges, then compare an all-cash case with the intended financing. Only after that set the required net yield. The largest hidden issue may not be one local fee; it may be several modest owner costs combined with an optimistic rent assumption.