Should I sell my ₹35 lakh Flat/house?

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Budding Star
bobby_123

"Should I sell my ₹35 lakh vacant property, invest in mutual funds, and use an SWP for monthly expenses, given my ₹33K salary and a family of three, including my 55-year-old mother and 2.5-year-old son?" 

And how much should I withdraw monthly?

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Budding Star Budding Star
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Mutual fund investments are subject to market risks, read all scheme related documents carefully.

Suggestion: let out property on rent.

Deal Lieutenant Deal Lieutenant
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  • Don't invest in MF in lumpsum, this is not a good idea.
  • Prefer SIP. 
  • Also, SWP is not good from the start, plan it after 2-3 years of investment.
  • If you need the invested money within 2 years then don't invest in equity, this is not a good idea.
    • Keep the money required in the first 2years in debt instruments like bonds/FD
    • For the rest money, you can do a sip, 5% month. (you can also plan remaining 95% in debt to equity rotation)
Budding Star Budding Star
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its cleared now
Deal Newbie Deal Newbie
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@bobby_123 Let me clear something. If you have inspired from YouTube about this SWP then the return percentage which almost every youtuber talking about is variable it's not fixed.  I have invested much in mutual funds of different types including hybrid, small, mid, large, index, infrastructure etc. so as per my suggestions you should not sell your house for just SWP you should earn and accumulate some wealth and do some investment because as per current scenario the return may be unstable. This is just my opinion I'm not here to misguide you as every person has different opinions. The same thought like you was awakened in my mind few years back but i stopped myself from selling my house by thinking about every situation. 
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Deal Newbie Deal Newbie
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Have you taken any home loan on that house?

Budding Star Budding Star
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its cleared now
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Budding Star Budding Star
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Mutual fund investments are subject to market risks, read all scheme related documents carefully.

Suggestion: let out property on rent.

Deal Cadet Deal Cadet
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If the property is at a location where prices haven't saturated and is going up steadily, you better hold on to your property/land. Defer your selling plan by 5 years for a better appreciation.

Deal Lieutenant Deal Lieutenant
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  • Don't invest in MF in lumpsum, this is not a good idea.
  • Prefer SIP. 
  • Also, SWP is not good from the start, plan it after 2-3 years of investment.
  • If you need the invested money within 2 years then don't invest in equity, this is not a good idea.
    • Keep the money required in the first 2years in debt instruments like bonds/FD
    • For the rest money, you can do a sip, 5% month. (you can also plan remaining 95% in debt to equity rotation)
Generous Generous
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With the property, there are many aspects attached.

1. Is that a Prime Location/how's the appreciation?

2. As it's a Flat, is building maintained properly? How's the society?

3. How old it is? It's very old, then what chance of its going for the redevelopment?

4. How much rent you can yield in case you put this on Rent?

and a lot...

So decide accordingly. Purchasing/Selling a property is always difficult.

Benevolent Benevolent
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Plus whose the builder?
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Commentator Commentator
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Check if there are upcoming govt projects like metro near your flat if there is than better not sell

Deal Cadet Deal Cadet
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If you leave it vacant with out maintenance it will cost you more in future for repair. If the rent is low and the area is bad sell invest in MF in three years it can double. Now it the best time to invest in MF. Selling property is difficult than MF if you have plans to more abroad then better sell it.

Deal Subedar Deal Subedar
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you have mentioned it as vacant so no income from that property right? so is it only now that there is no income or been a while as just want to know what is the expected Rent if its rented

35L in Small Finance Banks (SFB) will fetch around 3L per year (assuming 8.5%) which would be around 25k per month so if the Rent is falling short of it by more than 4-5k after considering the repair work when a tenant leaves etc then better sell it which again depends on the year of purchase to see how much Capital gains you would end up in paying etc..

coming to SFB, only 5L per bank account is insured so it would be like 8 accounts like 4 in your name and 4 in your mom/son  where you can deposit around 4L and choose the tenure accordingly or they have NonCummlative - Monthly/Quarterly/Yearly as well and ensure Principal + Interest earned doesn't cross 5L and you have 11 SFBs currently with the below four giving their highest returns

1) Unity 9% 

2) Suryoday 8.65%

3) Shivalik 8.55%

4) Utkarsh 8.5% 

https://rbi.org.in/scripts/banklink...px

Budding Star Budding Star
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Yeah i m planning for renting
Deal Lieutenant Deal Lieutenant
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NEVER SELL EYES FOR EYE DROPS

simple answer: Bad decision

Budding Star Budding Star
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sure
Finance Mentor Finance Mentor
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Intelligent people rent cars and flats/houses as I've read... dunno about personal choices though...

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