10 years 12L to invest

#81
Bhai, for now, take some ground action too.

Find out what is available to you for 20-25 lakhs range. Find out if it is good enough for living there or rent or just investment. If you can find something you can live in, you can maybe stretch your budget to 30 lakhs.

Find out what is the EMI for a 10 years loan for 10 lakhs, 15 lakhs, 20 lakhs etc. Assume that you are not going to use more than 5 lakhs of your corpus for housing.

Meanwhile let your savings earn interest in fixed earning schemes.

With the interest rates coming down, it is a very good time for borrowings, not a very good time for deposits.

I personally know that a MIG (2BHK) flat on first floor in Shastri Nagar Gaziabad got sold last year for 29 lakhs, ground floor for 32 lakhs. This for a lived in housing in a good society with security and all.

Look around and you will find a good deal at this time. Try to deal directly with the lender (no agent). Being a salaried person you have a higher chance of getting a bank loan. And you will have property dealers giving you great deals too.
 

gautam7821

Well-Known Member
#82
Also not to forget 20K EMI will not be finished after 12 years, which can land me into trouble.....
Thats why I calucalted EMI for 12 years only

https://drive.google.com/file/d/1HSZ26na9RTOv-TikXUsD3S4qfkSr9uje/view?usp=sharing

If I take loan with emi 20K .... the remaining amount becomes 45, and if I invest 40K ... I would be left almost nothing at the end of month for any emergency .... :(
It is just a calculation if I you buy a flat and shift there , you will save 15K that you are paying as rent.

+ you can claim 60K per month as deduction income tax for 5 years. (ask CA for more details)
( 2 lac interest paid on home loan x .30 = 60K , as you are in 30% tax slab)
ie 5K amonth.

So basically , 15K+5K= 20 K you save will cover 18 lac loan for 12 years.

not to forget 24L home will eat up my 6L from the 12L corpus I have.
Just by safe savings you will be getting 1.5 c. So you won't reget after retirement that you just spend 3-6 Lac to get a flat. You may get a flat less than 24 lac.

Tax deduction I can anyhow claim when I invest in any ULIP
That is 80C,I am talking about section 24 that is for home loan.
 
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#83
Just a point :

ST doesn't recommend buying ULIP. ELSS is fine. I myself have an experience of lower returns using ULIP.
 
#84
I had written a long post about why buy is better than rent, but that's just my bias. Reading this discussion bought out my bias. Well we are all sold out to our own ideas.

I for one would have never ever considered a rented accommodation to be better than a self owned house.
Something like TP has said above, even a small 1BHK far better than a big flat even if the cost / maths is same.
Well it was more of a behavior economics and not out of some objective thinking. Its tough to overcome these biases.

Anyway, good luck to the OP, whatever you decide, its good you are in a process to plan for your future well being.

In the final Maths, do consider the value the flat will have after 12 years.


.
 

siddhant4u

Well-Unknown Member
#85
I had written a long post about why buy is better than rent, but that's just my bias. Reading this discussion bought out my bias. Well we are all sold out to our own ideas.

I for one would have never ever considered a rented accommodation to be better than a self owned house.
Something like TP has said above, even a small 1BHK far better than a big flat even if the cost / maths is same.
Well it was more of a behavior economics and not out of some objective thinking. Its tough to overcome these biases.

Anyway, good luck to the OP, whatever you decide, its good you are in a process to plan for your future well being.

In the final Maths, do consider the value the flat will have after 12 years.


.
You are right. Ghar ki shanti banaye rakhane ke liye ghar buy karana jaruri hai. One has responsibility towards wife and children and this is what we normally forget to take into consideration while calculating financially.
 
#86
Ghar ki shanti Ghar khreedne se nahi hoti, Ghar ki shanti Ghar banane se hoti hai ... if you know what I mean here. As far as financial responsibility is there that is where my math says I will have a better chance of accumulating recommended corpus without taking the burden of Home Loan than with. At the end if I have enough money I can still purchase a 2 BHK house at my desired location.

But at the end, if I don't have enough corpus, either I anyhow have to sell the house, OR I will have a house but no money to live with day to day? (point to note I dont have even 2 L savings except for that 12L AT PRESENT) ... and I have ONLY 10-12 years to do what ever I can do to have a retirement pension amount.
 
#87
In the final Maths, do consider the value the flat will have after 12 years.
.
A builder flat sold for 42 L in 2014 is now 32L 2019 .... how much do you think a 32L new flat will be at that end of 10-12 years ..... even if the property appreciates, it might reach the same level i.e 42L MAX BUT, I will only have a house no money to survive. unless I decided to sell it, which would make the entire episode of purchasing it moot at the first place ....
 

ashishchauhan

CFG | IFA | AMFI Certified MFD
#89
Hi Sir,
I had gone through your thread and had read all your requirements. Its good you had your clear financial goals and future planning which you want to get in in the next 10 years. It's very good that you are doing your retirement planning in advance and many peoples lack in that. I meet daily peoples who are not aware of the financial planning and their future financial goals.
As a fact, no instrument like FD, PPF, NPS, RD etc in past 20-30 years had given more returns than Mutual Funds. Good mutual funds (aggressive ones) had grown @20% cagr in last 25 years. But on an average for a conservative portfolio a average return of 9-10% is possible which amounts to 1 cr in 10 years. For a mixed portfolio of moderate or medium risk portfolio a avg return of 11-13% a corpus of 1.25cr is achievable.
If you want to save tax then you should go for some good ELSS in equity fund and a portfolio of 3-4 good funds which includes midcap, multicap & largecap funds. For this a balanced portfolio of funds need to be created. This all returns are possible and all funds had a past record of generating return.
History suggests Investing in mutual fund is safe and very profitable if the investing view is above 5 years.I will not suggest investing directly in equity as already good companies which no one think will go down had crashed to 50-80%. So direct investing in equity is risky.
Now the best part at your retirement & your corpus had become since you had no pension. This corpus can help you in a big way to live & enjoy your life. How?
This 1 cr which you achieved will help you out by not withdrawing it but by portfolio reallocation to the safest and conservative way and getting monthly income too.
1cr will give you 80000 per month and your amount 1 cr will remain as it is.
or if you keep withdrawing 1 lakh per month then your fund will last for 17 years.
Please note above withdrawal conditions are for example. You will had the the comfort of withdrawing according to your need, more or less. And rest money will grow.
I had suggested you according to your need.
I am Certified Financial Guardian and MFD.
 
#90
Hi ashishchauhan

Really appreciate your effort in this and taking time to explain things. Very balanced and sane advice you have provided. I still have 2-3 months before I make the actual investment. I have more or less understood how to diversify the funds, however which actual companies to go for is the confusion,

Below is what I have finalized as of now......

HDFC is one I am sure I will choose, icici prud is another, rest I don't know. The 12L I have, in all certainly I will do an FD for the same, and use the interest as monthly payout and add that to my 35-40K monthly investment. The 35-45K on monthly investment is what I have to diversify, so with that amount, 25K in high risk and rest 15-20K in medium and low (debt) should make sense (Hope so .. :) ). How exactly I will do it ... still have no idea. But as and when the time comes will share my details and the final portfolio.

Advice from gurus here like you has been really helpful. Hope luck favours, lets see... :)

Regards
Sammy
 

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