Is it right to invest in real estate by taking home loan ? - Indian Real Estate Forum

anurag_khurana2003 · 05-05-10

please tell guys that RE purely as an investment by taking loan is correct strategy...

sanjeevr · 06-05-10

I don't think so as you will be paying a huge amount of interest in initial years and almost 90% + of your prinicipal will still be outstanding after initial years. So, investing using Home Loans is never a good option.

However, its good to use a personal loan + some savings and invest into a small plot...in that case it turns out to be a good investment. This is because Personal Loan tenure is short and interest you pay is not that much. So, even if you decide to repay your loan after two years, you may stand to gain from it. The only limitation is the EMI is on higher side because of short duration. So, it will depend on how much loan do you intend to take.

anurag_khurana2003 · 06-05-10

thanks sanjeev for prompt advise....i agree with u but there is one hiccup...small plot and that too manageable is nearly impossible to find in today's scenario..what to say ....

Quote:

Originally Posted by sanjeevr

I don't think so as you will be paying a huge amount of interest in initial years and almost 90% + of your prinicipal will still be outstanding after initial years. So, investing using Home Loans is never a good option.

However, its good to use a personal loan + some savings and invest into a small plot...in that case it turns out to be a good investment. This is because Personal Loan tenure is short and interest you pay is not that much. So, even if you decide to repay your loan after two years, you may stand to gain from it. The only limitation is the EMI is on higher side because of short duration. So, it will depend on how much loan do you intend to take.

anurag_khurana2003 · 10-05-10

seniors , kindly add ur valuable advice please..!

anurag_khurana2003 · 13-05-10

pls post ur comments...

sachuthanand · 03-06-10

hai anurag

It is an good idea to invest on real estate but going to home loans it is pretty hard because

you will purchase the land by looking for the investment returns if you are going for bank loans bank will take a good part
It is better that you go for some small plots or small apartments with in your budget
And important think is that check the developments happening in that area it is more important

Thanks & Regards
Achuthanand

Propsearcher · 29-06-10

Hi,

Even i am confused about investing in Gurgaon (Sec 92) in a 2 BHK by taking a home loan/ Personal Loan of around 5 lacs.

I want to exit in 3-6 months (by paying around 2 initial installments of 10% each) and make a profit on the same. Am i being too bullish about sector 92 or am putting my money at stake with no appreciation in 6 months?

Need urgent advise as i have applied for a PL.

Propsearcher · 30-06-10

Dear members , Pls advise.

Your words would be helpful in taking a decision.

nifty001 · 13-07-10

Quote:

Originally Posted by Propsearcher

Dear members , Pls advise.

Your words would be helpful in taking a decision.

its better to form a company of 3-4 people and book flat in the company name and pool money to buy on CLP...

many advantages think if you can !!!

rohanthengal · 13-07-10

purchase now ... and sale tomorrow strategy can be useful !

05-05-10	#1
anurag_khurana2003 Member Join Date: Dec 2009 Posts: 207 My Mood: Thanks: 9 Thanked 2 Times in 2 Posts Rep Power: 1	Is it right to invest in real estate by taking home loan ? please tell guys that RE purely as an investment by taking loan is correct strategy...

10-05-10	#4
anurag_khurana2003 Member Join Date: Dec 2009 Posts: 207 My Mood: Thanks: 9 Thanked 2 Times in 2 Posts Rep Power: 1	No inputs from Seniors !! seniors , kindly add ur valuable advice please..!

03-06-10	#6
sachuthanand BANNED Join Date: Jun 2010 Posts: 25 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 0	investing with home loans hai anurag It is an good idea to invest on real estate but going to home loans it is pretty hard because you will purchase the land by looking for the investment returns if you are going for bank loans bank will take a good part It is better that you go for some small plots or small apartments with in your budget And important think is that check the developments happening in that area it is more important Thanks & Regards Achuthanand

29-06-10	#7
Propsearcher New Member Join Date: Jun 2010 Posts: 37 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Investing in Sec 92 Gurgaon for 6 Months using a Personal loan/ Home Loan? Risky ?? Hi, Even i am confused about investing in Gurgaon (Sec 92) in a 2 BHK by taking a home loan/ Personal Loan of around 5 lacs. I want to exit in 3-6 months (by paying around 2 initial installments of 10% each) and make a profit on the same. Am i being too bullish about sector 92 or am putting my money at stake with no appreciation in 6 months? Need urgent advise as i have applied for a PL.

30-06-10	#8
Propsearcher New Member Join Date: Jun 2010 Posts: 37 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Investing in Sec 92 Gurgaon for 6 Months using a Personal loan/ Home Loan? Risky ?? Dear members , Pls advise. Your words would be helpful in taking a decision.

06-05-10	#2
sanjeevr Member Join Date: Sep 2009 Posts: 63 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	I don't think so as you will be paying a huge amount of interest in initial years and almost 90% + of your prinicipal will still be outstanding after initial years. So, investing using Home Loans is never a good option. However, its good to use a personal loan + some savings and invest into a small plot...in that case it turns out to be a good investment. This is because Personal Loan tenure is short and interest you pay is not that much. So, even if you decide to repay your loan after two years, you may stand to gain from it. The only limitation is the EMI is on higher side because of short duration. So, it will depend on how much loan do you intend to take.

13-05-10	#5
anurag_khurana2003 Member Join Date: Dec 2009 Posts: 207 My Mood: Thanks: 9 Thanked 2 Times in 2 Posts Rep Power: 1	pls post ur comments...

13-07-10	#10
rohanthengal New Member Join Date: Jul 2010 Posts: 32 My Mood: Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	purchase now ... and sale tomorrow strategy can be useful !

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