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 π)
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
π, 30L
#personalfinance
#investments
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comments
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
Btw how do I invest in commerical real estate? I've MF and stuff, never really tried commerial real-estate
But my hometown is Delhi lol.
Can buy in other places as well but parents will only visit it monthly rather than weekly.
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. Itβs 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.
Can you tell why the value went down in your case?
Will live on rent in BLR.