Hello sir, I am a defence personnel. Out of 365 days of a year I am at max on leave for 40-45 days. I have an ancestral house in mumbai which is a pagdi and likely to get redeveloped in coming 5 years. I was thinking of buying a house/ flat in Pune. My present salary is 1.5 lakh monthly. Effective money which is left with me after excluding all mandatory expenses is around 95k-1 lakh. I have around 28 lakh in pf and 2-3 lakh in mf. What should I do, how much should I spend on buying a flat. I have had shortlisted a 1 bhk for 60 lakh which is 30 years old flat, and considering the utility as I won't be living in it and my family will also reside at my duty station. Should I buy real estate or do something else to grow the money. I am 30 years old and another 23 years I can serve. Please guide me. Or give me a contact number so as I can take guidance

Ans: You have a strong foundation at age 30.

Disciplined savings, stable income, and a long service span ahead.

Let us now assess the decision about buying property. And weigh it against other options.

We will go step-by-step in detail.

?????Your Current Financial Strength

Your monthly income is Rs. 1.5 lakh. That is a solid income.

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You are saving around Rs. 95,000 to Rs. 1 lakh per month. Very efficient saving rate.

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You have Rs. 28 lakh in PF. That is a great long-term safety net.

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Rs. 2–3 lakh in mutual funds shows initiative. It needs more acceleration ahead.

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You have an ancestral home in Mumbai. That itself is a valuable future asset.

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You have no existing housing loan. So your debt levels are very healthy.

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You are in one of the best financial shapes for your age.

Very few people achieve this kind of financial control by 30.

?????Now let’s evaluate the Pune flat purchase idea

The property is 30 years old.

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Quoted price is Rs. 60 lakh.

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You mentioned neither you nor your family will live in it.

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So the flat will be mostly locked or rented.

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You are serving in defence, away from Pune for most of the year.

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Your family lives with you at your duty station.

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The flat will not serve as a primary residence.

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This is a pure investment decision.

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The property is not likely to give you emotional satisfaction either.

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So the question becomes — is real estate the best form of investment now?

The short answer is: No, not for you. At this stage.

?????Let’s analyse why buying this flat is not the best use of your money

Property is 30 years old. Resale may be difficult later.

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Rental yield is very low in India. 2% or less.

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That means a Rs. 60 lakh flat will give just Rs. 10,000 per month in rent.

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That is just Rs. 1.2 lakh per year. Not worth locking Rs. 60 lakh.

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Maintenance, property tax, broker charges will eat into the rent.

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Flat will need repairs due to its age.

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If you take a loan, EMI can be Rs. 45,000 to 50,000 per month.

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So rental income will not even match the EMI.

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Property values in cities like Pune are already over-priced.

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There are better ways to grow your wealth over time.

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Real estate has poor liquidity. You cannot sell it quickly in an emergency.

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Since you already have a future Mumbai property, your need for another house is low.

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You don’t need to lock Rs. 60 lakh into something non-productive.

?????Let’s now explore how you can grow your money smarter

You are saving Rs. 1 lakh every month.

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That is Rs. 12 lakh per year. Over 10 years, that is Rs. 1.2 crore invested.

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With the right investment approach, you can build over Rs. 2 crore in 10–12 years.

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You already have Rs. 2–3 lakh in mutual funds. That is a great start.

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Add to that your Rs. 28 lakh in PF. That is safe and long-term.

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But you now need to invest more in productive assets.

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Focus on actively managed mutual funds through a Certified Financial Planner.

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Avoid direct funds. They are low-cost but lack human guidance.

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Investing via a regular plan through a qualified MFD with CFP will keep you disciplined.

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Avoid index funds. They just copy the market, give average returns, and lack risk control.

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Active funds are managed by experienced fund managers.

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They aim to beat the market by smart allocation.

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Equity funds are ideal for your 15–20-year horizon.

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You can also allocate a small portion in hybrid or balanced funds.

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This gives you some stability and growth mix.

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Keep a small part, say 6 months’ expenses, in liquid funds or savings.

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Don’t go for insurance policies that mix insurance and investment.

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Stay away from ULIPs or traditional LIC policies for investment.

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No annuities needed either. They offer low returns and are taxable.

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Don’t look at buying land or property as an investment tool now.

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Mutual funds give better flexibility, liquidity, and diversification.

?????What can you do immediately from next month?

Start a monthly SIP of Rs. 50,000 to Rs. 60,000.

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Use an MFD backed by a CFP. They help choose the right schemes.

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Split SIP across large-cap, flexi-cap, and mid-cap funds.

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Add one hybrid equity fund.

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Invest regularly for the next 10 to 20 years.

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Review performance once a year with the CFP.

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Don’t panic during market falls. SIP will average costs over time.

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Avoid temptation to redeem unless there is a life goal.

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Keep your PF as it is. It is your retirement cushion.

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Build another Rs. 1 crore from mutual funds by age 45.

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After age 45, reduce equity exposure gradually.

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In 23 years of service, your pension will also support you.

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That frees your investment to be focused on wealth creation.

?????Future Redevelopment of Mumbai Property

Since the property is ancestral, you don’t have to buy another for emotional reasons.

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In 5 years, if redevelopment happens, you may get a bigger flat or compensation.

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That future benefit must also be considered before buying a new house.

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It will be like getting another house in Mumbai without spending from your side.

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That can be kept as residence post-retirement or rented for income.

?????Let’s assess your future goals from now

Your age is 30. You have 23 more years of service.

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You can build a corpus of over Rs. 3–4 crore if you stay disciplined.

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Invest Rs. 1 lakh every month for 20 years. That will give you a strong base.

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Later in life, use some part of this for kids’ education or marriage.

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The rest you can use for retirement.

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Let your money compound quietly in quality funds.

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Focus on staying invested and keeping emotions away.

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Don’t try to time the market. That is risky and stressful.

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Set clear goals with a Certified Financial Planner.

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Track goals once a year. Not every month.

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Keep life insurance separate. Buy term plan only.

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Don’t mix investments with insurance.

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Get family health insurance. That is more important than property at this point.

?????Your biggest strengths today

You are disciplined.

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You are saving more than 60% of income. That is rare.

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You are thinking about your future early. That is wise.

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You have a stable government job.

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You are debt-free.

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You have an upcoming real estate benefit from Mumbai.

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You have clarity that you won’t stay in Pune flat.

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You are not chasing short-term status but thinking long term.

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These traits will make you wealthy faster than others.

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You only need to follow a proven process now.

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That process is: Save → Invest in mutual funds → Review annually → Retire rich.

?????Finally

Don’t buy the Pune flat. It will not serve any financial or emotional goal.

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Keep saving Rs. 1 lakh monthly.

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Start SIPs with guidance from a CFP-backed mutual fund distributor.

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Keep your PF untouched. It is your retirement base.

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Avoid products with lock-in and low returns.

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Watch your mutual fund portfolio grow quietly over the years.

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Revisit the idea of buying a house only if it is for living.

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If your Mumbai home is redeveloped, you will already have a strong asset.

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Keep liquidity. Keep flexibility.

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Focus on long-term wealth. Not short-term real estate excitement.

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You are already on the right path. Just stay focused now.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment