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25L cash, what to do !!!

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25L cash, what to do !!!

Last updated: July 30 2011
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  • 25L cash, what to do !!!

    Guys have been member of this forum from 5-6 months now.....
    have been searching 2 bhk in pune since then...

    By and Large the news and forum and all says the prices will reduce, I have seen prices at the level where they were in mar-apr....no rise no drop...

    personally i didn't found any project worth the money they are asking...in Kharadi (45L)/hadapsar(40L)/wagoli(30-35L) areas...

    currently staying at a very gud 1 bhk flat for 7K i more then happy with this deal....reason to purchase flat is strong pressure from relatives to invest 'something' in RE....

    This is preface.....now Question....

    I have 25L in cash, of my own.....would like to keep 5L with me as liquid assets and can invest 20L at one go.......still need somewhere around 15L of loan to invest in RE.....

    What you guys have to suggest, should I invest in RE at this stage or keep that 20L in FDs and earn 2L a year....

    what will you (ofcourse many seniors here) do if in the situation like of mine.....
  • #2

    #2

    Re : 25L cash, what to do !!!

    Hi,

    There can be so many answers and so many combinations to this question. Here are some of the options which you may choose -

    1) Invest in Flat - take minimum loan and enjoy stay in your own house
    2) Invest in any commercial shop and start your own business
    3) Rent any shop in good locality and use the money you have as capital
    4) Purchase land around pune in acres and sell after some years ( pure investment )
    5) Combo of land purchase and 1 BHK flat purchase which will serve your home purpose and can have investment also.

    Keep FD as last option as thisway gives the lowest return.

    Hope this helps

    Regards
    AD

    Comment

    • #3

      #3

      Re : 25L cash, what to do !!!

      Originally posted by aedhole View Post
      Hi,

      There can be so many answers and so many combinations to this question. Here are some of the options which you may choose -

      1) Invest in Flat - take minimum loan and enjoy stay in your own house
      2) Invest in any commercial shop and start your own business
      3) Rent any shop in good locality and use the money you have as capital
      4) Purchase land around pune in acres and sell after some years ( pure investment )
      5) Combo of land purchase and 1 BHK flat purchase which will serve your home purpose and can have investment also.

      Keep FD as last option as thisway gives the lowest return.

      Hope this helps

      Regards
      AD
      I personly liked the ideas 2 and 3. Depending on whether you want you do your own business or earn rent you can choose either of the two

      Comment

      • #4

        #4

        Re : 25L cash, what to do !!!

        Originally posted by aedhole View Post
        Hi,

        There can be so many answers and so many combinations to this question. Here are some of the options which you may choose -

        1) Invest in Flat - take minimum loan and enjoy stay in your own house
        2) Invest in any commercial shop and start your own business
        3) Rent any shop in good locality and use the money you have as capital
        4) Purchase land around pune in acres and sell after some years ( pure investment )
        5) Combo of land purchase and 1 BHK flat purchase which will serve your home purpose and can have investment also.

        Keep FD as last option as thisway gives the lowest return.

        Hope this helps

        Regards
        AD

        My doubt is mainly intended to jump in RE at current rates....or just keep them into FD....and earn 10% yearly interest with full liquidity....

        Comment

        • #5

          #5

          Re : 25L cash, what to do !!!

          Are you taking the tax into account when you say 2L return on 20L FD? even at 10% return, (assuming maximum tax slab of 30%) the actual returns will be quite less.

          FD doesn't look all that attractive in terms of returns after tax when the actual inflation is much higher. (not the official govt. figure, the *actual* inflation).

          Cheers.

          Comment

          • #6

            #6

            Re : 25L cash, what to do !!!

            My suggestion

            Land is not common man business now a days... if you want peace of mind then investe in flat/shop.
            The current laws doesn't provide much protection if you want to give your shop on rent and also there is risk that tenant may not leave your shop if his business is running good. Also with this amount you can buy only 2000 sq ft of shop which is not a good sizefor majority of business. The loan for commercial is expensive and hence not considered here.

            I will suggest you to buy 1 BHK in already established good society and enjoy home loan benefit.

            Pl take care of following while buying 1 BHK-
            1. Society is complete with conveyance deed and completion certificate is obtained by business. No water issues.. very important.
            2. Land has clear title on which society has been built and it is not on slope of hill / on hill top. Best way to hire for good lawyer.
            3. Rest choice of location as per your convenience and you will have benefit to see what infrastructure is currently exists rather than proposed DP road promises of under construction.
            4. You can take loan only upto interest which will provide you max benefit of home loan and still you will save lot of cash which you can invest in other investment options.(i would have prefer FD)

            In current RE situation buying in long running project is risky as nobody on earth will be able to predict what is exactly ahead for RE. However we have seen negative points of RE in various forums so be carefully if you want to buy in under construction.

            The current time is not bad for buying 1 BHK as I dont expect major fall in 1 BHK price/rent. However if you want to buy 2 BHK then you will have to wait for 6 months.

            All the best for whatever you decide ! but do let us know what you have decided at the end

            Comment

            • #7

              #7

              Re : 25L cash, what to do !!!

              Originally posted by rajtjrll View Post
              My doubt is mainly intended to jump in RE at current rates....or just keep them into FD....and earn 10% yearly interest with full liquidity....
              If I had that much amount of money, I would
              1. Buy land if not in pune then in some other tier-2,3 city
              2. Combination of FD/liquid funds/stocks...

              With current scenario...I havent seen rates going up...I am also looking for flat since last 7-8 months and havent seen rates going up...

              Comment

              • #8

                #8

                Re : 25L cash, what to do !!!

                Originally posted by ntrivedi View Post
                Are you taking the tax into account when you say 2L return on 20L FD? even at 10% return, (assuming maximum tax slab of 30%) the actual returns will be quite less.

                FD doesn't look all that attractive in terms of returns after tax when the actual inflation is much higher. (not the official govt. figure, the *actual* inflation).

                Cheers.
                dude...put money on your parents name......no tax at all on interest earn...
                have 4-5 accounts and spread...fill in form H...

                Comment

                • #9

                  #9

                  Re : 25L cash, what to do !!!

                  Originally posted by [SIZE=5
                  silly_boy20[/SIZE];198244]25L cash, what to do !!!

                  hey where have u kept it ?? give me the key

                  you really are!! (if you know what i mean)

                  Comment

                  • #10

                    #10

                    Re : 25L cash, what to do !!!

                    Originally posted by silly_boy20
                    25L cash, what to do !!!

                    hey where have u kept it ?? give me the key
                    man, you said it before me

                    rajtjrll, if you are still confused after reading all those options suggested by the experts, the last option I suggest you is - GIVE THAT MONEY TO ME , relax and enjoy the happy and peaceful life

                    Excess money is a problem always and we loose peace of mind thinking about what to do with it.

                    BTW, on a serious note, here are few options -
                    1. Do FD's on your name, spouce's name and parent's name from both the parties (your mom dad and your in-laws).
                    2. Open PPF for you and your wife and divert 140K each year
                    3. Invest around 10L in equity
                    4. Buy Gold and SILVER
                    5. Do not put your hard earned money (i guess so) in any kind of real estate at this time.
                    6. Do not forget 5.

                    cheers
                    --monds

                    Comment

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