Greatly appreciate if you can help

#1
Well my uncle in Hyderabad has asked for the following deal

A total amount of 30L is needed for him to buy a plot and build a bungalow somewhere in the outskirts of Hyderabad.

So he's asking me to lend 15L(as he can't make both ends meet) and he'll pay me interest @8% per annum ie.1.2L per year.

So is it a good investment(compared to mutual funds) for me in cases
1.At the end of 20 years he transfers the whole property to me.
2.At the end of 20 years he transfers half the property to me.

Greatly appreciate your help. Sorry if it is in the wrong sub forum.
 
#2
Well my uncle in Hyderabad has asked for the following deal

A total amount of 30L is needed for him to buy a plot and build a bungalow somewhere in the outskirts of Hyderabad.

So he's asking me to lend 15L(as he can't make both ends meet) and he'll pay me interest @8% per annum ie.1.2L per year.

So is it a good investment(compared to mutual funds) for me in cases
1.At the end of 20 years he transfers the whole property to me.
2.At the end of 20 years he transfers half the property to me.

Greatly appreciate your help. Sorry if it is in the wrong sub forum.
Hi
I strongly discourage u to go for this deal.... First = making a deal with relative is not good .. u cannot demand if he fails or delays interst paying... More so 8 % interst is nothing when u plan for 20 years... I would say anything less than 12-15 % interst( CAGR) is not good for long term investment.. So according to the deal u will get one old house + 1.3 crore (IF interst amount regularly INVESTED in MF over 20 yrs with 15% CAGR (also if he agrees to transfer the house fully to ur name...

if u INVEST that amount now in MF ur money will be 2.5 crores at the end of 20 years.. and freedom of buying a new house

Decide by yourself... But never think about the deal with half ownership transfer.... its waste.,.....

Tool to calculte compund interest
http://www.moneycontrol.com/mutualfundindia/tools/
 

nsb

New Member
#3
Hi! I think you should not go into this deal. You say he will pay you 8% PA, but have you not noticed he cannot pay the amount he so want to. How will he get all the money to pay back you once he gets money from you? So, in my view, I would discourage you into going through this setup. Rest is up to you, do what you want to but ponder over what you want to do.