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The answer applies to all metro and capital cities in India . The question asked is similar to : Should I rent a car or own a car ? With every passing year , the answer will shift to renting a car …Timing of SellingAssuming you purchase a newly built apartment in a good locality and there being no more space available in the vicinity for new construction , you can get some capital appreciation in initial 3–4 years as people would be willing to purchase the apartment .But after 7–8 years , new areas would develop , your building will become old , it will require maintenance regularly and therefore new buyers will come only from lower middle class who cannot buy a newly built apartment .There onward , your apartment’s price will be decided as percentage cost of a newly built apartment , which may be half of a new apartment . It will have more cost of maintenance , lacking many new facilities . It could be done only after demolishing the building and making a new one . In my view, even that cannot be done in future as city would have changed dramatically in next 30 years and old buildings may be just demolished to make way for open space .So, best time to sell the apartment is within 2–3 years , after that it starts depreciating .2. No Capital Appreciation Scenario in FutureIt happened until 2012 in India . Reason was that there were small local builders who built low rise buildings with small number of apartments so supply was less . Old generation has 3–4 children on average so there was huge demand as they needed new residences . Economy was booming during 2003–2009 , everybody was getting good salary , IT market , share market boom , huge black money investment in construction led to good money in people’s hands and many people could purchase real estate . That led to huge appreciation of residential property .In 2016 , people have one or two children , they already live in a decent residence and there is no panic need to buy another apartment. The employment is only giving 3 or 4 LPA to new generation . Corporate builders are building high rise towers with 30 storeys , 500 apartments, with high technology and cost .So supply has increased but demand is not there as there are few people who can afford a simple 3 bhk flat for more than 1 crore . Starting maintenance cost and rental charges are already quite high , so people have little disposable income to buy a 1 crore worth flat and they would prefer to live in rented 2 BHK in sharing mode.That has led to huge inventory of unsold flats with builders , who are now compelled to rent them so that they can pay to investors and banks . They are forming REIT ( Real Estate Investment Trusts ) to capitalise their investments .This scenario will continue in coming years as technology becomes more affordable, MNC companies enter with foreign investment into real estate sector . Real estate sector will be more regulated , all the taxes are to be paid along with 20% GST in construction and maintenance and no black money could be used in construction or in purchase in coming years.Therefore in coming years , it will be only for very rich people to purchase an apartment . Big companies will own them and offer for rent for ordinary people , as already happens in western countries .New building regulations, environmental issues , increased taxes ,high labour cost to maintain buildings, shortage of water etc are other issues which will create headache for owners and that may make selling an old apartment impossible sometimes .Because of all these developments , just as it is now better for an individual to hire Ola or Uber to commute than owning and driving a car , the same way residential apartment will be owned by big real estate companies who will rent them and maintain them . Under such circumstances , person owning an apartment will be more like yellow black cab taxi owner , whom people will rarely look for .3. ConclusionIt is better to live in rented accommodation than purchasing a residential apartment . That will save your investment from getting blocked . Whether you purchase it , then rent it to others or you yourself live , investment wise it makes no sense . You have choice to move into new flat , new city , country as per your job, financial , social and family status .We are copying western way of living , so we will reach where Europe and US have already reached . Their middle class citizens no longer purchase apartments , they rent it and very soon we will also be renting them through UBer / Ola type mobile apps and that can be 1BHK , 2BHK as per need and duration . These flats would be equipped and furnished like new cars on Uber and one would need only personal effects to move into them in an hour , like a hotel room , after transacting over a mobile app.If you belong to rich class , then also you will go for apartment hotel type buildings , maintained by big companies as owning a land piece , constructing and maintaining will be huge headache which only Film stars, politicians , industrialists would be able to afford.4. How People Will Invest in Real Estate in FutureIt is best described in this link Nuts and bolts of Real Estate Investment Trusts .Update After Demonetization in 2016 :The prices will fall initially in 2017 but once GST is applied , the sale becomes more transparent , then properties will become costlier by at least 25% from low of 2017 prices .Once the whole process becomes transparent , more builders will come and supply will increase , so the prices will again stabilize and what has been written above will again be applicable after 3–4 years from now on . It will truly follow the housing patterns of US and Europe, with abundance of rented accommodation by corporate players using foreign direct investment.Post GST Scenario In October 2018GST has not made much difference as it reduced overall taxation . So, the situation whatever has been stated above now applies completely.

This can't be answered easily.Dealerships make money in a number of ways.Upfront profit - price delta, if any, between price paid and the "invoice price" or the price they paid American Honda for the car.Holdback - rebate after sale of the car, varies per brand and region. Often varies based on the customer satisfaction scores or other things - the holdback amount can be tweaked to drive certain dealership behaviors.Financing - the finance department makes money when they set you up with financing with either American Honda Finance or any number of 3rd parties for repayment over time in many different forms (loans, balloon loans, leases, etc)Accessories - Genuine Honda Accessories, or 3rd party accessories, parts, or other electronics at point of sale or later.Warranties - the finance department wants to sell you various warranties or services, including but not limited to protection packages for the exterior, the interior, the undercarriage, wheels/tires, etcService - when you bring your car in, the dealership can charge American Honda for warranty repairs, and they make money on maintenance/services. A common money making tactic is to bundle those into a discounted package up front.Costs for the dealership:Staff - the people that greet you, the people that show you the car, the people that process your paperwork, the people that clean your car, the people that prep it, the people that work on it, the people that sell it to you, the people that manage all of those people, etc all make salaries. The sales people make commissions.Systems - inventory tracking, lead/quote management, CRM, software updates for the cars, diagnostic software, etc, are often times now SaaS and incur a monthly or annual charge.Flooring charges and interest - Most car manufacturers float part or all of the cost of the car while the dealership has it - instead of interest, the dealership pays flooring charges which generally accrue monthly, to hold the car in their inventory - they are often incentivized by this to move cars before the month is over. Used cars are bought on a line of credit or with cash - having that capital tied up or exercising that line has a costReal estate - dealerships require a large lot and an expensive building - some manufacturers have certain standards of appearance or features of the buildings which are not cheap, beyond just the land. Signage, branding, trash, hazardous waste disposal, etc. Obviously this varies based on the desirability of the real estate, etc.Service department - specialized equipment required, and waste/rubber to dispose of. Both hardware and software.Advertising - newspaper, radio, television, internet, etc.Parts inventory - keeping your car prepped, serviced and repaired in a timely manner requires keeping a large inventory of parts on hand, on site. Purchasing and storing parts has a cost to it.The problem is that there is no set price that you can get, because it varies based on time of the month, time of the year, desirability of the vehicle, desirability of the options on the vehicle, size of inventory, whether the dealership has a numeric or revenue based bonus to hit, how the sales people are incentivized, how you pay, how likely you are to service the vehicle, whether you were nice or whether you were a pain to deal with, whether the sales manager or GM were in a good or bad mood, etc.There is not an easy answer, and anyone proposing one is either out of date, out of context or plain wrong. There is more information than ever available to the consumer, between published invoice prices, information on holdback, but you can't "know" what the best deal you can get until you actually try to get it. There are times and circumstances that will heavily vary the answer.

To the extent that your 'reinvestment' can be considered a business expense, it lowers your net income, which is what your taxable income is based upon.An expense is generally defined as a consumable item, which means that if the item is used (or consumed) during a given period, it is a reduction to your revenues. Typical operating expenses would include payroll, rent, utilities, supplies, utilities and so forth.Operating expenses should not to be confused with expenditures which have an economic benefit over a period of time.Barring a meteor falling on it or some other act of God destroying it, the lemonade stand you built and the pitcher you bought will still be around next year and most likely the year after that and the year after that. These types of 'capital' expenditures are not 'consumable' in nature and are analogous to a building, car, computers or equipment in the real business world. The initial outlay for the cost of capitalized items is not considered an expense, however, their cost is recorded as an expense in the form of depreciation and amortization over the useful life of the asset (which varies, according to asset classification).Money spent buying lemons are also not an expense. They are considered inventory (classified as an 'asset' on the balance sheet) and do not lower your income. However, when you use the lemons to make your lemonade and then sell your lemonade, the cost related to the lemons used to make each cup of lemonade you sell is considered an operating expense, commonly called 'cost of goods sold', if you were to look at an income statement.I think the most important takeaway from this answer is that not all investments into your business lower your net income and the related resulting income taxes.