The offer you mentioned seems to involve a branded shop for sale at a price of 89.7 lakhs (8.97 million) with an annual rental income of 89,700, yielding a 21% annual income along with potential for capital appreciation. Heres a breakdown of the details: ### Financial Overview: 1. Shop Price: 89.7 lakhs (8,970,000 INR) 2. Annual Rental Income: 89,700 INR 3. Annual Income Rate: 21% ### Calculations and Analysis: 1. Income Calculation: - Annual rental income of 89,700 INR yields a return of 21% per annum on the shop price. - To find the monthly rental income: \( 89,700 \, \text{INR} \div 12 = 7,475 \, \text{INR/month} \) 2. Investment Yield: - If 89,700 INR is 21% of the shop price, then to validate: \( \frac{89,700 \, \text{INR}}{89,70,000 \, \text{INR}} \times 100 \approx 1\% \) - This indicates an annual yield: \( 1\% \times 12 \approx 12\% \), which does not align with the stated 21%. Thus, there might be a discrepancy in the given figures or assumptions. ### Considerations: 1. Capital Appreciation: The potential for capital appreciation should be researched based on the location, market trends, and future developments in the area. 2. Due Diligence: Verify the authenticity of the rental income, the credibility of tenants, and the terms of the lease. 3. Expenses: Consider any maintenance costs, property taxes, and management fees that may impact net income. ### Example Scenario Analysis: If the rental income provided is accurate but needs adjustment: - Suppose the rental income intended was 897,000 INR annually, then: - \( \frac{897,000 \, \text{INR}}{89,70,000 \, \text{INR}} \times 100 = 10\% \) - Monthly rental income: \( 897,000 \, \text{INR} \div 12 = 74,750 \, \text{INR/month} \) This would indicate a higher income yield, closer to the implied 21%. ### Final Notes: Clarify the rental income figures to ensure accuracy. A detailed financial analysis with correct data will aid in making an informed investment decision. Consider consulting a financial advisor or real estate expert to verify all details and ensure a sound investment strategy.