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POSTED BY ON July 21, 2012 11:49 am COMMENTS (3)
Guys,
I had an unusual notion about my retirement, knocking my head. I ‘d appreciate if someone could vindicate it.
Currently, I live in a 2-BHK in a metro. After I retire from my job, and done away with all my family responisibilities, here’s what I m thinking.
I sell my house and re-settle in a 1-BHK in a tier 2 city with my wife. Put rest of the corpus in debt and MFs.
Does this sound like idea? or a dufus’ day dream?
-Yogi
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When are you retiring? at 60 years of age? If so, assume you have reached age of 60 today and see what is the amount you may get and check if that is sufficient for rest of your life of about 25 more years. I live in a Tier 2 city and I need Rs 5 lakh per year for basic living today. If I am 60 years old now, I will need about Rs 1.5 crore to retire today.
Another aspect. If you are planning to retire after 10 years or more, you will have to look at the possibility that apartment may look old and hence may not get more money when sold.
Also you are thinking 30 yrs from now , The real estate story is just 10 yrs old ( I mean the spectacular returns) , So what if it goes 10 more year ,, lets say 20 more years and then last 10 yrs are bad (like happened in US , just in case) . And your house worth from 40 lacs goes to 80 lacs , 1.5 crore and then 90 lacs again ?
This is reasonable, Provided your 2-bhk in metro will be able to provide you a decent amount of sum at the time of your retirement.
And if you are thinking about ‘real-estate only goes high and higher’, check out the problem in US.
Do not put all eggs in one basket.