I have learnt from my mentors/study that you should plan retirement from the day you started earnings. Done lots of reading and discussion with colleagues, friends for popular concept of Property portfolio. Here jotting down some points from those discussions and my experience in RE. Where you have 1 house for living but atleast additional 3 for earnings from renting. This concept is quite popular in West where investment in property is safe and prop management is straight forward without much hassle even owners don't physical visit properties for years. Although, appreciation not much.
I would like to ignite some discussion from dear members to understand how this model get fit in India property context specially NCR... Be clear we are not talking about buying and selling for a quick return.
Plan for Post Retirement Financial Security can be start with the questions like-
1- What are other traditional investment options like FD, stock, policies etc.
2- How can I achieve a more secure financial life for the time when I want to work less or to start retirement?
3- How can I achieve this without it taking up too much of my time?
4- What are the risks associated and mitigation like Kabza from tenants etc. which could be mitigated by various pre-cautions.
5- What are the taxation and associated expenses on owning properties and rents.
How you can achieve your financial future without wasting your precious time dealing with the daytoday hassles or worryingabout the market?
There are, of course, traditional ways of planning for the future listed above. I am not investement/finance expert but a salaried person with moderate income and stress more on safe and less time consuming things like stock market reaserch is not my cup of tea and too risky, returns from FD are safest but no longer bring serious returns. Pension policies based on speculations and don't see successful financial financial future.
Securing Properties only way? Is it less risky than investing some-where else? More profitable than putting your money into various savings, and leaves you with more of your profits than any scheme?
How it can be unarguable that a property portfolio is now the best way for you to make enough money to achieve your goal of financial security?
property prices never collapse like the stock market. But being salaried guy and not having any additional support I dont like being in debt. yes, but this isnt bad debt, this is good debt. This is not a consumer debt that takes money from you; this is a debt that is paid by somebody else, in your case a tenant. This is a debt that is covered by income, not a debt that takes money from your bank balance.
So creating a property portfolio that will enable you to have enough money, I can free to live out my dreams and enjoy my life to the fullest, doing
the things that I am passionate about? An early retirement or less hard work when I am reaching in that stage of life. The great time to build a property portfolio was when many people in the market were desperate to sell like just before RTM/registry or safe soft launches at good prices and home loans are available at cheap rate. By buying at depressed prices, you are sitting pretty when the good times return.
For an example if we talk about 3 additional 2BHK moderate properties around GGN, Noida, Ghaziabad (Vaishali/Indirapuram area). You have done those properties loan free over the time and spending your PF, retirals etc. The expected rent would be around 5L excluding associated expenses looking at current rental market + composite wealth of all properties . Is this amount won't give what a guy wants if that is retiring now. Keeping in mind property prices and rentals appreciates with time that covers inflation. People are smart here they can do all calculation and budgeting; according to pocket and plan accordingly.
Welcome all fact, inputs and criticism for informed decision for benefit of all.. :)
I would like to ignite some discussion from dear members to understand how this model get fit in India property context specially NCR... Be clear we are not talking about buying and selling for a quick return.
Plan for Post Retirement Financial Security can be start with the questions like-
1- What are other traditional investment options like FD, stock, policies etc.
2- How can I achieve a more secure financial life for the time when I want to work less or to start retirement?
3- How can I achieve this without it taking up too much of my time?
4- What are the risks associated and mitigation like Kabza from tenants etc. which could be mitigated by various pre-cautions.
5- What are the taxation and associated expenses on owning properties and rents.
How you can achieve your financial future without wasting your precious time dealing with the daytoday hassles or worryingabout the market?
There are, of course, traditional ways of planning for the future listed above. I am not investement/finance expert but a salaried person with moderate income and stress more on safe and less time consuming things like stock market reaserch is not my cup of tea and too risky, returns from FD are safest but no longer bring serious returns. Pension policies based on speculations and don't see successful financial financial future.
Securing Properties only way? Is it less risky than investing some-where else? More profitable than putting your money into various savings, and leaves you with more of your profits than any scheme?
How it can be unarguable that a property portfolio is now the best way for you to make enough money to achieve your goal of financial security?
property prices never collapse like the stock market. But being salaried guy and not having any additional support I dont like being in debt. yes, but this isnt bad debt, this is good debt. This is not a consumer debt that takes money from you; this is a debt that is paid by somebody else, in your case a tenant. This is a debt that is covered by income, not a debt that takes money from your bank balance.
So creating a property portfolio that will enable you to have enough money, I can free to live out my dreams and enjoy my life to the fullest, doing
the things that I am passionate about? An early retirement or less hard work when I am reaching in that stage of life. The great time to build a property portfolio was when many people in the market were desperate to sell like just before RTM/registry or safe soft launches at good prices and home loans are available at cheap rate. By buying at depressed prices, you are sitting pretty when the good times return.
For an example if we talk about 3 additional 2BHK moderate properties around GGN, Noida, Ghaziabad (Vaishali/Indirapuram area). You have done those properties loan free over the time and spending your PF, retirals etc. The expected rent would be around 5L excluding associated expenses looking at current rental market + composite wealth of all properties . Is this amount won't give what a guy wants if that is retiring now. Keeping in mind property prices and rentals appreciates with time that covers inflation. People are smart here they can do all calculation and budgeting; according to pocket and plan accordingly.
Welcome all fact, inputs and criticism for informed decision for benefit of all.. :)