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POSTED BY ON January 5, 2015 2:08 pm COMMENTS (2)
Hi investors,
I am 34 with a 4 year old child. Is it good to invest ALL savings (PF accumulations+ Gold+ Cash Savings) to buy a residential plot. I am sure the plot I am planning to purchase, will appreciate in future. However, I have PF accumulations 4.7 Lacs, Cash 4 Lacs, Gold 2 Lacs & apart from that I only have a LIC endowment policy. I have no other savings till now.
Please suggest would it be wise to invest in that plot.
-Prakash.
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No it is not in my opinion..
you need to tick few boxes before you go for real estate like :
1. is my retirement planning is on course? you don’t want to touch your retirement kitty for this buy
2. emergency fund (for unknown emergencies) is there?
3. life (term) insurance, medical insurance are done?
After fixing all the above (this is by the way not the full list of basics), then decide if you have money to invest in Real Estate..
In your case Gold is the only thing you can liquidate to buy real estate….liquidating PF & Cash in hand is no no in my opinion..
Real Estate is a good investment or not is a different debate altogether..
Kindly discontinue with ur LIC endowment policy(lic yields 4% per annum ), instead take term insurance . Put ur cash to some good diversified MF scheme for at least 10 years. Gold allocation is fine kindly stop thinking gold as an investment.
Land is very easy to buy and to maintain and sale of land is not that easy as it looks whole buying.*
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Kindly use ur own judgement before taking final decision.