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14-10-12
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#31 | |
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bhelpuri khaayege halla machayege aur ek paisa kharcha nahi karege - saath saath flat to le kar rahege '' rohit |
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14-10-12
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#32 | |
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Senior Member
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15-10-12
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#33 |
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Veteran Member
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3 stress test for investment
I have 3 stress test to assess my current level of risk , before i take further loans for any new investment.
1. Do you have liquid investment in cash, bank deposits etc. which can sustain 70% of your current expenses ( including all EMIs if any ) for next 2 years in case you are jobless for next 2 years 2. are you fully covered for your life insurance / medical insurance for the next 2 years in case you are jobless for next 2 years. 3. In case RE tanks tomorrow by 40% will you be still able to recover your contribution after retiring your debt. Hope it helps. |
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15-10-12
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#34 | |
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Senior Moderator
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Greetings The "6 yrs" suggested in my previous post is based on actuarial studies Cheers |
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15-10-12
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#35 | |
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Veteran Member
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I agree that should be the case for capping the loan limit, over and above should be the stress test as suggested in my post. The reason is in uncertain times , there is a reasonable chance of a job loss and a potential RE crash. In either or both the case, it may not be able to sustain the loans even if capped to " 6 years". |
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15-10-12
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#36 | |
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And moreover, RE will not tank by 40% ever.. Worse to worse, it will be stagnant my friend.. |
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15-10-12
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#37 | |
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Senior Member
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yaar ye kahan ka worst case scenario hia.. |
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15-10-12
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#38 |
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Veteran Member
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cheetu,
what blessu is suggesting is to take a loan which is equal to 6 years of your salary as a cap. I am not sure if he meant 6 years without job. I have suggested 2 years as in case of a major economic downturn also , it is reasonable to assume that economic cycles can come back in 2 years time frame. Sohnaroad, always assuming that prices will only go up and not go down is the surest recipe for disaster. Just as not investing for years in the hope that prices will come down. I prefer to have a conservative investment strategy which factors into account a reasonable chance for things to go wrong. It also depends on your age , people in twenties will have different risk capability than people in their thirties . Another factor is what is at stake for you . For instance the nearer are you to achieve the financial objectives that ensures your retirement , the more should be efforts towards capital preservation, as your stakes are high. But if you are at the intial stage where there is a huge gap between your goals and actuals then risk taking ability increases that much more . So wether something is too conservative or too aggressive, depends a lot on some of the factors that i have detailed above. |
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15-10-12
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#39 |
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Veteran Member
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Dear kinjalchato and all
My answer in blue 1. Do you have liquid investment in cash, bank deposits etc. which can sustain 70% of your current expenses ( including all EMIs if any ) for next 2 years in case you are jobless for next 2 years For a loan of 55L, i've a liquid amount of 10L and the property is RTM. Me and both of my earn equal (1.4L PM). 2. are you fully covered for your life insurance / medical insurance for the next 2 years in case you are jobless for next 2 years. We both have: 1. cover of over 1 Cr against life+premanent disability. 2. Medical and Accidental cover of 25 L each. in case of hospitalization due to accident the total medical cover becomes 50L 3. In case RE tanks tomorrow by 40% will you be still able to recover your contribution after retiring your debt. This property is not investment. We dont have a kid or other liability. How do you rate my situation. though i dont have sleepless nights but at times i think over it. Please reply |
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15-10-12
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#40 |
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hey guys indian economy is growing - don't put any of your money just play with bank's money - make sure you have no emotion attached to any movable / immovable property and till the sun is shining keep making hay once things go in another directions just mail the keys
who cares for cibil score just make sure you keep cash in an undisclosed place/asset and you would be fine this is what is going to happen |
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