Need advice on property investment

POSTED BY ashish ON April 10, 2012 9:51 pm COMMENTS (9)

Hi,
I have a question related to investment in real-estate.
I have under construction flat in noida extension but as we all know only GOD knows when it will start.
So I have purchased a plot in sarjapur (bangalore) 50*30 = 1500 sqft in 16 lac. 3 km from proposed infosys SEZ campus. Is this good deal?
Also planning to invest more on property,
I have two option, either buy under construction appartment or buy one 1/2 acre plot Which one should I prefer? Plot or Appartment?

All these investment I am aiming to without any loan.

Can you please advice if this is good investment for at least 5 yrs. Also correct my understanding, after 3 yrs there will no tax if I sell the property.
Expert advice from justgrowmymoney, Ashal Jauhari is much awaited.
Thanks in advance for your time.

9 replies on this article “Need advice on property investment”

  1. ashish says:

    Can anyone else suggest their feedback please?

  2. ashish says:

    sorry, please read last line as

    20000 rs per year on PPF.

  3. ashish says:

    Sure, here are the details :-
    ————————–
    80K LIC +Term+Med are
    LIC JeevanAnand (Moneyback policy with 20% return every 5 yrs) paying quarterly 12536 for 20 yrs. 6 yrs already completed.

    2 term insurance :- AEGON Religare (with all three rider) 7647 rs per year.
    and BhartiAXA(pure term insurance with no rider) 5100 rs per year.
    Both term insurance is of 60lac each

    40000 for health insurance (not yet purchased but planned this year)
    —————————————-
    My 5 SIP are where I am investing 5k per month :-
    1) IDFC STERLING EQUITY FUND – GROWTH — IDFC MUTUAL FUND
    2) Financial Services Opportunities. Regular – Growth — SUNDARAM MUTUAL FUND
    3) ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND RETAIL GROWTH — ICICI PRUDENTIAL MUTUAL FUND
    4) SBI MAGNUM SECTOR FUNDS UMBRELLA – IT — SBI FUNDS MANAGEMENT PVT LTD
    5) DSP BLACKROCK WORLD GOLD FUND – GROWTH — DSP BLACKROCK MUTUAL FUND

    and
    2000 rs per year on PPF.
    ————————————————————–
    Thanks again for your time.

    1. Dear Ashish, Please do note LIC Jeevan Anand is not a money back plan. Either you have posted wrong name or some one has mis-sold you. Please check the exact details of your LIC policy. Aegon Religare has recently slashed it’s online term plan prem. had you purchased earlier or after slashing. Why I’m asking? The reason is, Aegon Religare is offering additional Sum assured for the prev. buyers with out any extra cost to pass on the benefit of reduced prem.

      Dear Ashish, one important info is missing from your details, your current income & expenses on mly/yly basis.

      Please provide more details for the same.

      Can you throw some light on the selection of funds for your SIP? How & why did you opt these funds?

      thanks

      Ashal

      1. ashish says:

        thanks Ashal, I might be wrong in LIC policy name but one thing is sure that its money back policy as last year itself I got 20% of sum assured.
        The name I just checked in my lic is “The money back Policy (20 yrs) T. No. 75”

        My monthly income is around 1.2 lac and my wife also working so total in month we getting around 1.85 lac. We try to save at least 1 lac per month.

        The SIP I purchased by these criteria:-
        1) searching online and seeing their performance
        2) Sector specific fund like Gold and IT

        Please let me know if I can switch them to some other good option as they were selected for one year only and going to complete in may. I can modify my MF portfolio then

        1. Dear Ashish, this money back policy is one of the worst policy you may have in your portfolio. Please decide on your own for this MB policy that you are ready to amend your mistake or not? Now coming back to your Real estate query –

          Quote – I have under construction flat in noida extension but as we all know only GOD knows when it will start.

          Unquote – You have already burnt your finger once & still ready to burn one more time by investing in another under construction property.

          By the way, in the whole discussion, it’s not clear to me that you are living on rent or in own house at present. Please update the same. May I know the Term cover or any Insurance your wife is having.

          thanks

          Ashal

  4. Dear Sachin, May I know the details of that 80K LIC + Term + Med. thing? Also if possible to you, can you please share more on your SIPs?

    thanks

    Ashal

  5. ashish says:

    Thanks for the answer and giving your valuable time in reading my query.
    So the plot which I purchased @ 16lac, and after 3 yrs let’s say I got the deal of 25lac. Then can you please suggest the tax amount I have to pay?

    The reason I am looking for property investment because the area where I am investing have good potential to grow. I have seen the place and surroundings and found myself comfortable to invest. Also as I have 2yrs daughter, so one plot of .5 acre I am planning to treat as FD on her name for at least 10 yrs.

    Additionally,I am already investing 5k per month in SIP and 20k in PPF and 80k in lic+term insurance + med insurance.

    How do you view my portfolio?

  6. Dear Ashish, It’s not that after 3Y holding period, your Tax liability becomes zero. Please do note after 3Y holding period, the gains if any (In case you are selling the property) ‘ll be considered Long Term capital Gains & taxed after benefit of Indexation @ 20.6%. This was the tax part answer for your query.

    May I know the reason, why you are so much fascinated with Real estate for your investments?

    Thanks

    Ashal

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today