Need Advice on Investing! - Indian Real Estate Forum

tester1234 · 24-01-12

Hi,

I already own a home in thane and have no home loan currently. I am sitting on 10L cash and was thinking of taking 15L loan more and invest in real estate.i.e buy a 2 home. Am I eligible to take income tax benefit on this new loan? How about commercial space? Is it a money sucker or money generator avenue?

I have repaid my earlier home loan. I heard there are other income tax benefits for 2 home but I don't have any clear idea about this.
Can you guys please suggest some projects where I can invest? Is it fair to expect 50% appreciation in 5 years.$$$$. One thing I want is this property to generate income and not suck money in form of maintenance :-)

What advice would you give me to invest the money in apart from real estate?

I am looking at 5 year horizon. Please don't recommend stocks I have been badly burnt by it.

Thanks

neel2000 · 24-01-12

you will get the full benefit of interest payment on income tax and not be restricted to 1.5L u/s 24.

What is your total budget? Assuming it to be 25L based on your post you might be able to get a 1 BHK around Kalyan. Try Adharwadi, Khadakpada. You get rents of around 4 to 5000 there.
Appreciation am not sure but will definitely appreciate by 20 % in 5 yrs. time
regards,
Eswar

eloish · 24-01-12

You have 10L cash in hand!

Only if you opt for ready possession, you give your home on rent you might get monthly income. But again you need to calculate how much EMI/Interest you are paying and finally what will you be gaining. Loan is always a huge burden!

What i feel, instead for going for a flat, invest in NA plots surrounding Mumbai-Pune area with your 10L cash in hand. You may get good returns in future.

And if not above & stocks you can invest in FD (safe investment - in current market ) and/or MF's.

AbhishekS · 25-01-12

I am sitting on 10L cash and was thinking of taking 15L loan more and invest in real estate.i.e buy a 2 home
With this budget you can get a home (max 1 BHK) in Ambernath/ badlapur region....or virar/ vasai..
Doubtful if you will get anything good (1BHK) in Pune...even Wakad and Hinjewadi would cost you more than 25L.
If you are taking a loan of 15L for a period of 20 yrs at 10.50 interest then you would end paying an EMI of close to 15k....so it means you need to earn atleast 15k out of the property (for a no-profit-no-loss)

tester1234 · 01-02-12

Anyone any other advice? If real estate is not going to give good return where should I invest?

amul_capri · 03-02-12

Dood..investing in real estate is not an option now.
You need to sit tight, atleast till Mar-May. As far as sales go in Mumbai, you can clearly see that investors are no longer investing and the purchases are from few genuine buyers who are desperate.
If you buy a grossly overpriced flat now for 25L, and that too on the outskirts of Mumbai..think people are going to buy it for 39L after 5 years?

One good option is : If you are a single child and you trust your parents/grand parents

, you can put that amount in FD on your parents name (to get Senior Ctzn %). Incase of emergency or better investment option, you can always withdraw it.

tester1234 · 12-02-12

I have decided to take the plunge and buy a house for invesment purpose.I am looking at buying at kharghar. Budget is 40-45 lakhs.Can you guys please suggest me some projects. I visited the property exhibition yesterday at vashi.In my budget I am getting some offers ins sector 35.what are your views?please assist in making rhis decision for me.Ideally we want the flat for reputed builder not far away from station.

chikkoo · 12-02-12

Quote:

Originally Posted by tester1234

I have decided to take the plunge and buy a house for invesment purpose.I am looking at buying at kharghar. Budget is 40-45 lakhs.Can you guys please suggest me some projects. I visited the property exhibition yesterday at vashi.In my budget I am getting some offers ins sector 35.what are your views?please assist in making rhis decision for me.Ideally we want the flat for reputed builder not far away from station.

Hello,

Do you think Sector 35 is not far way from station? it is approx. 8 km from station.

vrpimparkar · 23-02-12

Increase it to 75L. I have a good option for U in Kharghar. Will start earning Rs. 15000/- per month as a rental income. It will double in 5-6 years. rental will increase by 10% every year.

sanav3 · 23-02-12

Quote:

Originally Posted by vrpimparkar

Increase it to 75L. I have a good option for U in Kharghar. Will start earning Rs. 15000/- per month as a rental income. It will double in 5-6 years. rental will increase by 10% every year.

has the rental been increasing by 10% from 2008 to 2012?

24-01-12	#1
tester1234 New Member Join Date: Jan 2012 Posts: 34 Thanks: 6 Thanked 4 Times in 4 Posts	Need Advice on Investing! Hi, I already own a home in thane and have no home loan currently. I am sitting on 10L cash and was thinking of taking 15L loan more and invest in real estate.i.e buy a 2 home. Am I eligible to take income tax benefit on this new loan? How about commercial space? Is it a money sucker or money generator avenue? I have repaid my earlier home loan. I heard there are other income tax benefits for 2 home but I don't have any clear idea about this. Can you guys please suggest some projects where I can invest? Is it fair to expect 50% appreciation in 5 years.$$$$. One thing I want is this property to generate income and not suck money in form of maintenance :-) What advice would you give me to invest the money in apart from real estate? I am looking at 5 year horizon. Please don't recommend stocks I have been badly burnt by it. Thanks Last edited by IGRM; 24-01-12 at 04:18 PM.

24-01-12	#3
eloish Member Join Date: Sep 2010 Posts: 102 My Mood: Thanks: 0 Thanked 1 Time in 1 Post	Why do you want to invest in a flat?, when.... You have 10L cash in hand! Only if you opt for ready possession, you give your home on rent you might get monthly income. But again you need to calculate how much EMI/Interest you are paying and finally what will you be gaining. Loan is always a huge burden! What i feel, instead for going for a flat, invest in NA plots surrounding Mumbai-Pune area with your 10L cash in hand. You may get good returns in future. And if not above & stocks you can invest in FD (safe investment - in current market ) and/or MF's. __________________ ---------------------------------------------------- Sometimes your best investments are the ones you don't make!!! ---------------------------------------------------- Last edited by eloish; 24-01-12 at 10:53 PM.

03-02-12	#6
amul_capri New Member Join Date: Aug 2009 Posts: 30 My Mood: Thanks: 2 Thanked 3 Times in 3 Posts	Dood..investing in real estate is not an option now. You need to sit tight, atleast till Mar-May. As far as sales go in Mumbai, you can clearly see that investors are no longer investing and the purchases are from few genuine buyers who are desperate. If you buy a grossly overpriced flat now for 25L, and that too on the outskirts of Mumbai..think people are going to buy it for 39L after 5 years? One good option is : If you are a single child and you trust your parents/grand parents , you can put that amount in FD on your parents name (to get Senior Ctzn %). Incase of emergency or better investment option, you can always withdraw it. Last edited by amul_capri; 03-02-12 at 11:54 AM.

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24-01-12	#2
neel2000 Member Join Date: Nov 2009 Posts: 76 My Mood: Thanks: 0 Thanked 3 Times in 3 Posts	you will get the full benefit of interest payment on income tax and not be restricted to 1.5L u/s 24. What is your total budget? Assuming it to be 25L based on your post you might be able to get a 1 BHK around Kalyan. Try Adharwadi, Khadakpada. You get rents of around 4 to 5000 there. Appreciation am not sure but will definitely appreciate by 20 % in 5 yrs. time regards, Eswar

25-01-12	#4
AbhishekS New Member Join Date: Aug 2011 Posts: 31 My Mood: Thanks: 0 Thanked 1 Time in 1 Post	I am sitting on 10L cash and was thinking of taking 15L loan more and invest in real estate.i.e buy a 2 home With this budget you can get a home (max 1 BHK) in Ambernath/ badlapur region....or virar/ vasai.. Doubtful if you will get anything good (1BHK) in Pune...even Wakad and Hinjewadi would cost you more than 25L. If you are taking a loan of 15L for a period of 20 yrs at 10.50 interest then you would end paying an EMI of close to 15k....so it means you need to earn atleast 15k out of the property (for a no-profit-no-loss)

01-02-12	#5
tester1234 New Member Join Date: Jan 2012 Posts: 34 Thanks: 6 Thanked 4 Times in 4 Posts	Anyone any other advice? If real estate is not going to give good return where should I invest?

12-02-12	#7
tester1234 New Member Join Date: Jan 2012 Posts: 34 Thanks: 6 Thanked 4 Times in 4 Posts	I have decided to take the plunge and buy a house for invesment purpose.I am looking at buying at kharghar. Budget is 40-45 lakhs.Can you guys please suggest me some projects. I visited the property exhibition yesterday at vashi.In my budget I am getting some offers ins sector 35.what are your views?please assist in making rhis decision for me.Ideally we want the flat for reputed builder not far away from station.

23-02-12	#9
vrpimparkar New Member Join Date: Feb 2012 Posts: 13 Thanks: 0 Thanked 0 Times in 0 Posts	Increase it to 75L. I have a good option for U in Kharghar. Will start earning Rs. 15000/- per month as a rental income. It will double in 5-6 years. rental will increase by 10% every year.