Advise on property investment
I am a 22 year old Male working in Mumbai. I have just over an year’s ago experience of working in a consulting firm. My base is 26-30LPA. For those whose have invested in properties (residential), and those who chose not to - is it ideal for me to take a loan to buy a house for my parents. It’s price is ~1Cr and I’d be taking a loan for 5 years. I am wondering if a liability would hamper my growth (personally or professionally), or would this be a worthwhile investment. I am confident about the investment itself, as in i expect it to appreciate in value, but still have doubts about taking a loan. And advise/opinion would be helpful
- Do you have near term goals like your masters, your siblings education, your or sibling wedding?
- How much your parents earn? If you leave your job, can they pay the emi?
- How likely your parents will settle in that house?
Thanks for replying. To answer your questions:
- No plans for masters in the next 2-3 years. Sibling’s education would be covered by parents/education loan. No wedding planes in the foreseeable future
- My father started his own firm last year. Although the company is in its early stage, he currently makes decent money from it. He is contributing ~40L upfront for the investment. He will be able cover the EMI for ~1yr if I am not in a job due to whatever reason.
- Parents' chance of settling here is 50% but I'm sure they'd stay here for 7-10 years atleast. We can choose to sell of stay here after that
Go ahead and buy.
Great points by @Watsay49. In addition to that
- Whether you and your parents have medical insurance (ideal for you is 5 lakh+ 95 lakhs top-up) for parents it depends on various factors
- Whether you have term insurance (better to have it for min. 75 lakhs)
- If you are emotionally attached to get a house don't consider it as investment 😀
For a period of 5 years, it looks good to me. Better than u spending off ur excess money or making wrong decisions like crypto. Anyway, good luck.