Hi Mr Hemant I'm a salaried professional. Is this a good time to invest in real estate? I plan to take an 80 per cent loan to buy a flat. Kindly suggest if the decision is right

Ans: historical support is 40 and near-term support is 58 ... I m expecting it to test 48-50 levels. you can slowly start accumulating at mentioned levels according to your risk appetite

Ans: It's great that you're considering investment opportunities to secure your financial future. Investing in real estate can be a sound strategy, especially if you're looking for steady rental income and potential long-term appreciation. However, it's essential to weigh the pros and cons before committing to another property.

Buying a second house with a loan of 70 lakhs can diversify your investment portfolio and generate additional rental income. However, it's crucial to assess the risks involved, such as property market fluctuations, maintenance costs, and vacancy risks. Additionally, taking on more debt through a housing loan requires careful financial planning to ensure you can comfortably manage the repayments alongside your current expenses.

Before proceeding, consider exploring other investment options that align with your financial goals and risk tolerance. Diversifying your portfolio with a mix of assets like mutual funds, stocks, bonds, or even gold can provide liquidity and potentially higher returns over the long term. Consulting with a Certified Financial Planner can help you evaluate your options and create a tailored investment strategy that maximizes returns while managing risk.

Ultimately, the decision to invest in another property or explore alternative investment avenues depends on your individual circumstances, goals, and risk appetite. By carefully assessing your options and seeking professional advice, you can make informed decisions to build a strong financial foundation for the future.

Ans: Your proposed commercial real estate investment of Rs. 1 crore yielding Rs. 3 lakhs per month (i.e., 36% annual return) appears too high and unrealistic unless there’s significant risk, leverage, or capital appreciation assumptions involved. Such high rental yields in prime areas are extremely rare, especially on net investments.

Key Cautions:
Rental yield of 8–10% is considered excellent in commercial real estate. 36% is highly unusual.

Sub-leasing and tenant improvements come with execution, vacancy, legal, and maintenance risks.

Liquidity is poor. Exiting such investments mid-way can be difficult.

If your capital is tied up, it may compromise retirement cash flow flexibility.

Returns may drop if tenants vacate early, or cost overruns happen.

Guidance:
If this 3L/month rental is assured and documented contractually, it can be considered, but only after:

Proper legal vetting of lease agreements

Due diligence on tenant quality

Clarity on exit options after 9 years

Not more than 20–25% of your portfolio should be illiquid

Unless all these are solid, you’re better off using that Rs. 1 crore in hybrid + equity mutual funds, generating 10–12% CAGR with full liquidity, diversification, and lower risk.

Verdict: High caution advised. Revalidate all projections and legal safeguards. Don’t proceed unless cash flow and capital security are guaranteed.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: You have made many financial moves with clarity and purpose. Your asset base is strong.

You sold Rs.?1.6 crore worth of financial assets to buy a house. Let us now assess this decision. We’ll look at all angles to guide you.

This detailed review will help you make smart, balanced, long-term decisions.

Was Buying the Property a Good Decision?

Owning a house offers emotional comfort and stability.

It also lowers rent cost and gives more space.

But property is not a flexible investment.

It is hard to sell fast when money is needed.

Property needs repairs, tax payments and legal care.

Financial investments do not have such burdens.

Your earlier financial assets were more liquid.

You had Rs.?2 crore in stocks and Rs.?1 crore in bonds and mutual funds.

After this new property, your real estate share is now very high.

This can impact long-term growth and flexibility.

Financial assets like mutual funds often grow faster.

Properties in outskirts grow slowly and depend on area development.

This growth is not guaranteed.

You must check if the area has good infrastructure plans.

Is Real Estate the Best Wealth-Building Tool?

Property is not the fastest wealth builder.

Equity mutual funds grow faster over time.

Property needs high capital, low returns and long holding periods.

You may also face legal or title issues.

Rent income is also not guaranteed.

Real estate is hard to sell when you need cash.

Stocks and bonds are easier to exit.

Real estate gives pride, but less profit.

You must not depend only on property for wealth.

How Your Asset Mix Looks Now

Your assets are now heavy in real estate.

Rs.?70 lakhs flat in Bangalore plus Rs.?1.6 crore new house.

That’s over Rs.?2.3 crore in property.

Stock and mutual fund holding is now Rs.?2 crore approx.

This makes the ratio about 55% in real estate.

For financial growth, this is very high.

Financial assets give compounding and flexibility.

Too much in real estate may hurt long-term goals.

You may face difficulty accessing funds in emergencies.

Liquidity is now lower than before.

You are on a job break, so liquidity is more important now.

During Career Break, Liquidity is Vital

When you are not earning, liquidity is your protection.

Property cannot give you quick funds in emergencies.

But mutual funds and stocks can be sold in 1-3 days.

You must protect cash flow till income resumes.

Emergency fund should be 12 months’ living cost.

Ensure you are not over-relying on property.

What You Could Have Considered Instead

You could rent in outskirts instead of buying.

Renting keeps your money invested in mutual funds.

You could have earned higher returns with flexibility.

Money in mutual funds can help meet multiple goals.

Renting avoids repair, tax and legal costs.

Ownership is not always necessary.

Emotional satisfaction from a house is valid.

But it must not reduce your long-term growth.

Why Mutual Funds Are a Better Tool for Growth

Mutual funds give professional fund management.

They offer better diversification than any property.

Regular mutual fund plans offer expert support.

A Certified Financial Planner can help choose better funds.

Actively managed funds adjust to market changes.

Index funds just copy the market.

Index funds don’t protect against sharp market falls.

They do not beat the market in tough times.

Direct mutual funds also have no personal help.

If you invest directly, you get no strategy or advice.

Regular plans give human support and help in planning.

Investment without expert help is like driving without direction.

Choose mutual funds through MFD with CFP support.

What You Should Do Next

Review if the new house is for self-use or investment.

If self-use, then it meets emotional comfort, not wealth goals.

If investment, then rethink its growth and returns.

Keep some funds in high-quality mutual funds.

Avoid putting more into real estate.

Resume SIPs once cash flow starts again.

Avoid index funds and direct funds going forward.

Focus on active funds with proper advice.

Set goals for retirement, health, and other needs.

Adjust asset mix to support those goals.

Keep financial assets above 50% for better future growth.

Plan your tax-saving investments every year.

Don’t depend only on property or insurance-based plans.

If you hold any LIC, ULIP, or combo plans, review them.

If returns are poor, consider surrendering and investing in mutual funds.

Property must be need-based, not return-based.

Let financial products drive long-term growth.

Take insurance for risk protection, not investment.

Continue asset review every 6 months.

Choose Certified Financial Planner to keep you on track.

Finally

Your decision to buy the house brings peace, but lowers growth.

It’s fine if emotional security is your key goal now.

But make sure you don’t lose financial strength.

Property is hard to manage, and slow to grow.

Your asset allocation needs rebalancing toward financial investments.

Start investing again when income resumes.

Reduce dependence on physical assets.

Trust actively managed mutual funds via regular plans.

Seek professional guidance to ensure your long-term success.

You’ve done well so far. With a few changes, you can go further.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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