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Purchase Property Without Taking Loan or Save Money for Other Investments?

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Purchase Property Without Taking Loan or Save Money for Other Investments?

Last updated: June 15 2011
19 | Posts
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  • #11

    #11

    Re : Purchase Property Without Taking Loan or Save Money for Other Investments?

    1)His Savings is around 35K
    2) No Loan
    3) Presently have around 10 L
    4) Inv horizon : 3 lacs
    5) Ticket size of present Inv is 35 lacs
    6) Ticket size of Inv spought in GGN 40 lacs
    7) So planning to take loan for NOIda + Inv in CLP with 10L and then reap the benefit of increase in GGN as well as Noida. But the risk is Blood bath as happend earlier.
    8) Second option is to pay Noida CLP installments..

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    • #12

      #12

      Re : Purchase Property Without Taking Loan or Save Money for Other Investments?

      Investment

      Originally posted by Ravi_Indian View Post
      1)His Savings is around 35K
      2) No Loan.. should benefit to take loan for interest deduction from Gross income ONLY
      3) Presently have around 10 L- ok
      4) Inv horizon : 3 lacs--- i think you mean 3 years ?
      5) Ticket size of present Inv is 35 lacs--- does this include extras like parking+edc+idc+ifmsetc+ registry?
      6) Ticket size of Inv spought in GGN 40 lacs--difficult proposition
      7) So planning to take loan for NOIda (how much?)+ Inv in CLP with 10L and then reap the benefit of increase in GGN as well as Noida. But the risk is Blood bath as happend earlier.
      8) Second option is to pay Noida CLP installments..
      Hi
      Greetings!!

      good idea to diversify.. though I am not an advisor but would may share my opinion, I may be wrong in some. Honestly something decent for 40lacs (all incl) in GGN, even in CLP (fresh launch) is difficult. Just to give you a fair idea please check link for CLPs/Fresh launches on dway
      https://spreadsheets.google.com/ccc?...CKjfg6cD#gid=1

      Also
      Please check actual possible loan for friends noida investment as amount already paid is 55% of 35 lacs (about Rs19.25 lacs paid). Loan i think is available only on outstanding (Rs 15.75 Lacs) unless is a loan on property for which rate would be higher and property title not clear at this stage.

      So if we find a good deal in ggn, total investment required over next few years is 15.75 lacs for noida and 40 lacs for ggn ie 55 lacs
      will need (a) 10 lacs in hand and (b)45 lacs + any extras, as loan amount..

      Bear in mind taking a loan for that much amount would need higher savings. Also 1% increase in home loan rate may increase your installments from 240 (20years) by 30-40 extra installments!!!
      Also no builder in my knowledge has delivered in 3 years.. I may be wrong
      Basic reason for being so scrupulous is that firstly investment objective needs to be clear. Secondly, what ROI your friend is looking at.
      Sorry but looks a tough in both options call mate with current savings assumption!!!
      Last edited June 10 2011, 10:02 PM. Reason: syntax

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      • #13

        #13

        Re : Purchase Property Without Taking Loan or Save Money for Other Investments?

        Originally posted by MANOJa View Post
        Quite true, but the point is that most guys tend to through caution in the dustbin & start leaning towards over leveraging .

        With no easy exits in the market, that could be suicidal .

        For people, weak at heart & with weak pockets, CAUTION is the catch word .
        Bilkul!!!!!
        Those who 'think' they know how to play the game but actually don't, end up biting off more than they can chew ( over leveraging without even realising). Thereby, inficting maximum damage to themselves incase of a slow-down/ fall.
        Ye to hai, jitni chadar ho.. Utne hi pair failao
        sigpicWe are the ones who wanna choose..Always wanna play ..but we never wanna loose!!!

        Comment

        • #14

          #14

          Re : Purchase Property Without Taking Loan or Save Money for Other Investments?

          Originally posted by Ravi_Indian View Post
          1)His Savings is around 35K
          2) No Loan
          3) Presently have around 10 L
          4) Inv horizon : 3 lacs
          5) Ticket size of present Inv is 35 lacs
          6) Ticket size of Inv spought in GGN 40 lacs 
          7) So planning to take loan for NOIda + Inv in CLP with 10L and then reap the benefit of increase in GGN as well as Noida. But the risk is Blood bath as happend earlier.
          8) Second option is to pay Noida CLP installments..

          Ravi g!!

          When you started the thread, from your very first post, it appeared (although you didn't clearly say) that this friend of yours still has about 25 lacs liquid to pay off and based upon that I advised you to buy gurgaon on loan whilst keeping a few installments for noida handy. But with the current details which hv come to light with this post of yours, it seems that he shouldn't really go for gurgaon as of now. 

          1) the present cash holding is 10 L which would definitely go as a down payment in gurgaon after which your practically left with little or no money. If he  takes a loan for gurgaon ( as advised by myself earlier) he wouldn't be able to pay off the next installment of noida. 
          2) incase, he takes a loan on noida property, he's leaving himself exposed to risk in gurgaon.how does he plan to pay the next installment of gurgaon while paying off installments of loan. Would it be feasible?? 
          3) At a budget of abt 40 lacs, I doubt he'd get anything which has any chance of giving him good returns immediately and holding is something which doesn't look very promising by the look of the balance sheet.

          I'd suggest clear off( or close to clear off) noida or if unhappy dispose noida and then jump in this fray !!!! 
          Last edited June 11 2011, 04:32 AM.
          sigpicWe are the ones who wanna choose..Always wanna play ..but we never wanna loose!!!

          Comment

          • #15

            #15

            Re : Purchase Property Without Taking Loan or Save Money for Other Investments?

            Any Opinion formed?

            Hi
            Greetings!!

            Ravi_Indian I would be curious to know What has your friend decided to do with his 10 lacs and 35K monthly savings?

            Cheers
            Last edited June 12 2011, 04:44 PM. Reason: syntax

            Comment

            • #16

              #16

              Re : Purchase Property Without Taking Loan or Save Money for Other Investments?

              Originally posted by BlessU View Post
              Hi
              Greetings!!

              Ravi_Indian I would be curious to know What has your friend decided to do with his 10 lacs and 35K monthly savings?

              Cheers


              So are we!!!!
              sigpicWe are the ones who wanna choose..Always wanna play ..but we never wanna loose!!!

              Comment

              • #17

                #17

                Re : Purchase Property Without Taking Loan or Save Money for Other Investments?

                May have something good for you?

                Hi
                Greeting!!
                Ravi_Indian on behalf of his friend would like to now actually help you with support from other members. I might actually have a good solution specific to your situation.. But would need your comments to the ensuing discussion...

                Cheers!!!

                Comment

                • #18

                  #18

                  Re : Purchase Property Without Taking Loan or Save Money for Other Investments?

                  iHi Sorry for delay in answering..

                  So he has decided probably to go for Loan for Noida and meanwhile save Rs 10 lacs in FD etc and have some more savings before going for GGN...

                  I hope this is right...( As he wants to leverage probably after 3 yrs or so if not now)

                  Comment

                  • #19

                    #19

                    Re : Purchase Property Without Taking Loan or Save Money for Other Investments?

                    Originally posted by Ravi_Indian View Post
                    iHi Sorry for delay in answering..

                    So he has decided probably to go for Loan for Noida and meanwhile save Rs 10 lacs in FD etc and have some more savings before going for GGN...

                    I hope this is right...( As he wants to leverage probably after 3 yrs or so if not now)
                    On a personal note, disappointed with his decision. On one hand he's gonna pay interest on home loan which would certainly be more than what he would earn on a fixed deposit, maybe equal, for this stressed temporary phase but more in the long run. Isse accha home loan shouldn't have been thought of at this juncture, since next investment looks a good 3 yrs away!!
                    Khair, jo kiya accha kiya!!!
                    sigpicWe are the ones who wanna choose..Always wanna play ..but we never wanna loose!!!

                    Comment

                    • #20

                      #20

                      Re : Purchase Property Without Taking Loan or Save Money for Other Investments?

                      I hope his decision is correct ....

                      Comment

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