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FloatingPancake
FloatingPancake
Urban Company

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

22mo ago
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SwirlyNoodle
SwirlyNoodle
Stealth22mo
  1. Do you have near term goals like your masters, your siblings education, your or sibling wedding?
  2. How much your parents earn? If you leave your job, can they pay the emi?
  3. How likely your parents will settle in that house?
FloatingPancake
FloatingPancake
Urban Company22mo

Thanks for replying. To answer your questions:

  1. 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
  2. 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.
  3. 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
SwirlyNoodle
SwirlyNoodle
Stealth22mo

Go ahead and buy.

ZestyWaffle
ZestyWaffle
Freelancer22mo

Great points by @Watsay49. In addition to that

  1. 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
  2. Whether you have term insurance (better to have it for min. 75 lakhs)
  3. If you are emotionally attached to get a house don't consider it as investment 😀
FluffyNugget
FluffyNugget
Plivo22mo

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.

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Bhai, this is vinaash kaale viprit buddhi. Please avoid this thought.

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