HOUSE BUYING

POSTED BY shahid hasan ON August 16, 2011 10:51 pm COMMENTS (10)

I am planning to buy a house which will complete in 6 months in Bhopal city cost me now 40 lakhs rupess . and the carpet area is 1000 squre fit. OWNER said i will complete it in 5-6 month time. The question is should i buy it right now or there will be any further correction of rate.

secondly should i shift to rental house(8000 rs permonth) as he will give me in 6 months or should try to buy another house right now which is completed at present .

The things are not clear to me . This house could be for living and also investment purposes .Gide me pl

DR SHAHID HASAN

10 replies on this article “HOUSE BUYING”

  1. ashal jauhari says:

    Dear Jignesh, be it in bank FDs or Liquid funds, money ‘ll remain with dear Shahid being liquid in nature. At any time, in case he needs money, he can liquidate his holdings of bank FDs or liquid funds as the case may be.

    Regarding post tax return, please do note many banks are now a days offering 7 to 8% rate of return for 1Y FDs (even for 6-8 months FD the rates are on higher side than 3-4 months back). Now as the total earned interest income is not more than 5L Rs. the applicable Tax slab ‘ll be 10.3%. Hence I used the post Tax return of 6-7%.

    Hope I’m clear to you now.

    Thanks

    Ashal

  2. sunil says:

    @Jignesh…
    He can consider Liquid Funds to Bank FD’s.

  3. jignesh says:

    Ashal,
    So for getting that interest amount, does he no need to block his liquid amount ( 40 lac ) completely for minimum one year?

    Is it possible to earn such interest by putting money for 6 month or 8 month?

    thanks

  4. ashal jauhari says:

    Dear Shahid, 40L Rs. can earn you a post tax return of around 6-7% based upon current interest rates. This translates into earning some 2.4 to 2.8L Rs. yly i.e. 20 to 23000 Rs. mly. Even if you opt to stay on rent, you are left with some 13 to 16K Rs. in your hand.

    To me renting for next 6-8 months should be preferred if you or your wife are not in dire need of an own house.

    Thanks

    Ashal

    1. shahid hasan says:

      tx a lot ashal for guidnce

  5. ashal jauhari says:

    Dear Shahid, keeping in mind for the fact that you are a NRI & in all probability, you are not going to live in this property in near future, my take ‘ll be to opt for wait & watch. In case prices corrects, you ‘ll be able to save some amount. In case prices remain at same level, as you are purchasing after 6 months, you are already getting benefit of money lying with you & earning for you. Although it looks remote but in case prices increase from the current level, still you are in profit for the fact that property is now ready for possession because in today’s critical time there is no surety of getting your under construction property within the defined time limit.

    Thanks

    Ashal

    1. shahid hasan says:

      TX as my wife in india she want to get the house to live it means she should take the rental property for the time being. rent of house the one i am dealing is 7500/month. for six month it will abt 45000. is it ok ashal

      thanks

  6. ashal jauhari says:

    Dear Dr. Shahid Hasan, your query is silent on the point – how you are going to arrange those 40L Rs.?

    Please share the same.

    Please do share your current financial position also in terms of income, expenses, loan liabilities, family members…..

    Thanks

    Ashal

    1. shahid hasan says:

      DEAR Ashal i have enough money at present i have salary 2 lakh permonth i as i am an NRI in saudi arabia.

      my main querry is should i go ahead to buy house or should wait further for the danger of real state bubble / correction of prices in city like bhopal.

      shahid

    2. shahid hasan says:

      DEAR ASHAL.
      I do not have any liability , loan and expenses are 15000/month.

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