A technology keeps on enabling our ability to perform analytics with "Internet of Things" (IOT) has emerged as an area where devices capture and transmit information. IOT is currently an evolving field and lot of research has been carried out in this regard and research indicates that predictive analytics with IOT is the most disruptive technology in the current era. Predictive analytics is being used in many applications such as healthcare, finance, marketing, smart home and analytics. The process of predictive analytics on IOT offers the flexibility of implementing the latest hardware by making certain changes to the dataset created by the previous generation hardware. In the home this digital explosion and access to the information is presently during the time spent being reached out to devices such as refrigerator, stoves, oven etc. The paper addresses the issues related to household devices those connected to the internet concerning their poor settings and suggesting the optimal results. The concept of predictive analytics is used to facilitate the most optimal setting by the templates which are created personally based on the sensor data received from various sensors implanted into home appliances. This paper also discusses challenges faced and value points during use of predictive analytics in IOT, while utilizing the huge dataset generated by IOT devices to ease the daily day to day task and accomplish the motive of smart home automation.