Is there any answer for my query asked on 07 Jan 2024. Male 42 Year, Wife 38 (housewife), Two Kids age 9 and 5.5 (both school going), living in Ghaziabad, Job in Gurugram. I had a loss of my own property when my brother cheated on me, then I...

Is there any answer for my query asked on 07 Jan 2024. Male 42 Year, Wife 38 (housewife), Two Kids age 9 and 5.5 (both school going), living in Ghaziabad, Job in Gurugram. I had a loss of my own property when my brother cheated on me, then I had another loss of around 25L in a property. Because of this, I disturbed mentally and physically both. Currently living on rent in Ghaziabad and doing daily up & down to Gurgaon for job which takes around 4.5 hrs. Thought of shifting to Gurgaon, but because of cost factors (like daily expenses, rent, school fees etc) are very high in Gurgaon as compared to Ghaziabad. But not at the age of 42, health does not allow the 4.5 hrs of daily journey as well as my kids want my time also. Ultimately, point is that, if I will stay in GZB and purchase a property here, I will have to commute daily for 4.5 hrs OR if I'll go to Gurgaon, meeting the expenses are difficult. Kindly suggest.

Ans: It sounds like you're facing a challenging situation with various factors to consider. Here are a few suggestions:

Consider prioritizing your health and well-being: A 4.5-hour daily commute can take a toll on your physical and mental health, especially considering your age and family responsibilities.

Evaluate your financial situation carefully: Compare the costs of living in Ghaziabad versus Gurgaon, including rent, school fees, and daily expenses. Look for ways to optimize your budget and potentially increase your income through avenues like investments or additional sources of revenue.

Explore alternative living arrangements: Look for more affordable housing options closer to your workplace in Gurgaon or explore the possibility of telecommuting if your job allows it.

Seek professional guidance: Consider consulting with a financial advisor or counselor who can help you assess your options objectively and make informed decisions based on your priorities and financial situation.

Ultimately, prioritize your health, family well-being, and financial stability when making your decision. It may require some careful planning and adjustments, but finding the right balance is crucial for your overall happiness and success.

Ans: Planning to buy a property in Gurgaon and securing your daughter’s future requires a comprehensive strategy. As a Certified Financial Planner, I will guide you through the process with empathy and understanding, providing genuine compliments and professional advice. Let's break down the steps in an easy-to-follow manner.

Understanding Your Current Financial Situation
First, let's look at your current financial status. Your salary is Rs. 65,000 per month, and your wife takes care of the household, your parents, and your young daughter. Living in a rented property in Gurgaon, you aim to buy a home suitable for your entire family.

Funds from Property Sale
You recently sold a property in Gurgaon for Rs. 33,00,000. This amount will significantly contribute to your new property purchase. Given the rising property rates, finding a suitable home within your budget can be challenging but manageable with proper planning.

Property Search in Gurgaon
Set a Budget
Your budget for purchasing a property should include the amount from your property sale and any additional funds you can allocate. Given the sale amount of Rs. 33,00,000, aim to add some savings to this amount if possible.

Determine Your Requirements
Assess your family's needs in terms of space and amenities. Consider the following:

Number of bedrooms
Proximity to schools and hospitals
Access to public transportation
Safety and neighborhood quality
Explore Financing Options
You might need to take a home loan to cover any shortfall. Check your eligibility based on your income and credit score. Banks typically offer home loans up to 80% of the property value. Ensure the EMI is manageable within your monthly budget.

Research Property Options
Look for properties in Gurgaon that fit your budget and requirements. Areas like Sector 56, 57, and Sohna Road offer good residential options. Consider contacting real estate agents or using property search websites to explore listings.

Planning Your Daughter’s Future
Secure Education and Marriage Funds
Your daughter is 1.8 years old, giving you time to plan for her education and marriage. Start by estimating the future costs for both these milestones.

Investment Options for Her Future
Fixed Deposits and Recurring Deposits
FDs and RDs are safe options for securing funds. They offer guaranteed returns and can be a good choice for short-term goals.

Public Provident Fund (PPF)
PPF is a long-term, tax-free investment option. It is excellent for accumulating a substantial amount over time due to its compounding nature.

Mutual Funds
Mutual funds can provide higher returns over the long term. Consider equity mutual funds for higher growth potential, keeping in mind the risk associated.

Building a Comprehensive Financial Plan
Emergency Fund
Maintain an emergency fund covering at least 6 months of expenses. This fund will provide financial security during unexpected situations.

Insurance Coverage
Ensure you have adequate life and health insurance coverage. Life insurance will secure your family’s future, while health insurance will cover medical expenses.

Evaluating Investment Strategies
Active vs. Passive Funds
Active funds are managed by professionals aiming to outperform the market. They can be beneficial due to their potential for higher returns compared to index funds, which merely replicate market indices.

Benefits of Regular Funds
Investing through a Mutual Fund Distributor (MFD) with CFP credentials offers several advantages:

Professional guidance
Personalized advice
Better fund selection based on your risk profile
Disadvantages of Index Funds
While index funds have lower fees, they lack the potential for higher returns that actively managed funds offer. They simply track the market and do not aim to outperform it.

Regular Monitoring and Review
Regular Review of Investments
Periodically review your investment portfolio to ensure it aligns with your goals. Adjust the allocation based on changing market conditions and personal circumstances.

Professional Advice
Consulting with a Certified Financial Planner regularly can help you stay on track with your financial goals. They can provide personalized advice and make necessary adjustments to your plan.

Buying a Property: Key Considerations
Legal Verification
Ensure the property has clear legal titles. Verify documents such as the sale deed, land records, and approvals from local authorities.

Home Loan Process
Compare home loan offers from different banks. Consider factors like interest rates, loan tenure, and processing fees. Ensure the EMI fits comfortably within your budget.

Property Valuation
Get the property valued to ensure you are paying a fair price. This step helps in negotiating the purchase price and securing the right loan amount.

Final Insights
Buying a property in Gurgaon and planning your daughter's future requires meticulous planning and execution. By setting a realistic budget, exploring financing options, and selecting suitable investment avenues, you can achieve your goals. Regularly review your financial plan with the help of a Certified Financial Planner to ensure it remains aligned with your objectives. Remember, the right financial strategy will provide security and growth for your family.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in