what are the profits and risk involved in buying a property on loan and selling it within an year?



i wanna buy a land worth rs 2000000 and resale it within an year making a payment of 200000 and rest 18 from the bank ,so what are the difficulties while buying and reselling the property in indore by the banks ,what is the procedure and taxes implied ,as i am totally new to this market and a dumb to such dealings?/

what are the profits and risk involved in buying a property on loan and selling it within an year?
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3 Replies to “what are the profits and risk involved in buying a property on loan and selling it within an year?”



  1. You may have to pay a prepayment penalty of 2% of the loan to your bank/HF. If the appreciation on rates covers all these expenses and interest payments incurred, and you still stand to gain, you can very well do it. There is no risk. You have to pay the Income Tax on the short term profits.





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