Investment in India

Google
Goog$

Go to company page Google

Goog$
Aug 15, 2021 39 Comments

Edit:Location of flat talked abt- Delhi

For some context, I recently joined Google and am new to investing. Get around 1.1 lakhs per month & looking to invest that (not going to sell Google stocks πŸš€)

Was considering to invest in Mutual funds but recently got an idea to -
Buy a 3BHK (1.25 - 1.5 cr) on EMI/loan for only investment purposes... Like buy & hold and not for living.

Eventually can sell the flat to buy any other (maybe in BLR) or even use it, as property prices always go up.

Any thoughts?

Should I go all in on mutual friends and buy the flat later after compounding? Buying without EMI

Or, should I compound it on MFs for a few years and then buy a flat by paying some percent (40/60) and rest on EMI?

Or , to do it in a ratio, some part to EMI rest to MFs?

TCQ
🍜, 30L

#personalfinance
#investments

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TOP 39 Comments
  • Dm me , I was in same dilemma recently
    Aug 15, 2021 3
  • Amazon
    Abzw22

    Go to company page Amazon

    Abzw22
    Residential Real investment in India doesn’t make sense at all, unless you plan to live in it.
    The RE market has exploded 5-6x in last 10 years and that kind of growth going forward is not realistic and sustainable.
    The rental income is also not within the margin of making 1% return rule.

    I would focus on stocks, mutual funds or commercial real estate where rental income is stable and better compared to residential
    Aug 15, 2021 2
  • Rippling / Eng
    Dik_Pik_πŸ†

    Go to company page Rippling Eng

    PRE
    Flipkart
    Dik_Pik_πŸ†
    If you really want to buy a property buy i your hometown as it will be cheap there and prices will go high there also. One good thing about hometown is your parents can also take care and currently for you 1cr loan would be a stressful thing.
    Aug 15, 2021 1
    • Google
      Goog$

      Go to company page Google

      Goog$
      OP
      Totally agreed.
      But my hometown is Delhi lol.

      Can buy in other places as well but parents will only visit it monthly rather than weekly.
      Aug 15, 2021
  • Nutanix
    __python__

    Go to company page Nutanix

    __python__
    Don’t buy a flat as an investment because of the following reasons:
    1. Rental yields are only 3%, meaning if you are buying a house for 1Cr, you will get around 3L per year as rent.
    2. It’s a long term commitment, you will be bound to pay the EMIs and you will loose flexibility of starting/joining a startup.
    3. There are of owning a flat, property tax, major repairs.
    4. All your money will be locked in the house as selling a house/flat can take time.
    Aug 15, 2021 3
    • Google
      mEVi73

      Go to company page Google

      mEVi73
      @nutanix is right. I bought 2-3 properties around 10 years back in NCR region and their current value is even less than what I paid. I would have easily 3X that amount in Stocks/MF.
      Aug 15, 2021
    • Google
      Goog$

      Go to company page Google

      Goog$
      OP
      Generally property prices goes up over the years. Unless something nearby has changed which makes the location from prime to non prime.

      Can you tell why the value went down in your case?
      Aug 15, 2021
  • Oracle
    XZjap

    Go to company page Oracle

    XZjap
    For investment, buying land makes more sense than a flat. There are way too many empty flats in blr. Also do the calculations, 3bhk rent 1.5cr/(35-40k *12) you get the idea
    Aug 15, 2021 1