[Jaguar]

Originally Posted by ramnaresh_2000

I am currently eligible for a pre-approved home loan of 80 lakhs. ... I do not have amount or corpus for down payment.

No offense, I don't know your circumstances, but if you can afford a car like a Jeep Compass, you should be able to afford at least the down payment for a house. If not, there is something wrong with your personal money management, which needs fixing before you even think of a personal loan.

[ramnaresh_2000]

Originally Posted by deehunk

That's a very good suggestion. However, any investment in land should not be made through loans. The amount of interest will negate any profit an investor will make from price appreciation in 5-7 years.

20 lakhs loan at 10.85% interest for 5 years will cost me 6 lakhs in interest. I can make 2 additional payments yearly with my bonus amount. This will bring down the interest drastically to 4 lakhs or even lesser. I don't think that is a bad approach.

Short term the cost maybe higher side, but long term it will yield better passive income monthly. People take loans on depreciating assets like cars, mobiles etc, real estate is appreciating asset, so yes the interest maybe higher side but, the satisfaction you get of a passive income and owning a land and property is priceless.

Originally Posted by Jaguar

No offense, I don't know your circumstances, but if you can afford a car like a Jeep Compass, you should be able to afford at least the down payment for a house. If not, there is something wrong with your personal money management, which needs fixing before you even think of a personal loan.

Used Jeep Compass, yes you are 100% correct you have zero clue about my circumstances. So please stop making assumptions.

[sunilch]

Originally Posted by ramnaresh_2000

I want to own a house now, but use it for commercial purposes (like renting it out to a playschool or a local cooperative bank or a chit fund company or something similar.

Some numbers don't look to be realistic here. I am not here to refute your plan or intention or preference.

1) I hope you mean Sq Yards and not only Yards.
2) For mixed-use development, such as commercial on the ground or first floor and residential on higher floors, the cost of municipal approvals will be higher, and area FSI will be limited, I suppose. But it is a good long-term plan and something that can be passed on to future generations.
3) The quoted amount for 250 sq yards doesn't look practical in today's time unless you already have any old deal in hand or a leg in it due to some provision or facility.
4) Borrowing money to buy land and then develop it is not a bad idea if the borrowed amount is easy to manage and the interest payable is accounted for, since it is only investment and not for self use.
5) But I suggest going all in and not splitting into two (MF and Land + Development). Even for financial markets, go all in into MFs based on your research.
6) Buying only land with borrowed money is not helpful and is riskier since appreciation will be totally dependent on external factors. Only when you put in the effort to develop it, get the plans approved and do some work, appreciation is guaranteed and satisfactory.
7) Buying an already built residential unit for rental is the last thing that should be done in terms of preferences. The rental yield is minimal here. But it comes with the convenience of not having to do any additional work, having paperwork sorted and get rent from day 1. So you gain some and lose some. Decide based on your preferences.
8) I would stick to your initial thought of buying land and developing it. Requires effort, connections and patience. But it will be worth the effort when it is completed.

Can't recommend anything on actual numbers because they depend on too many unknown and local (area-specific) factors.

Note: I have not done this myself because I have limited resources, and hence, I stick to MFs. But I have seen and understand the dynamics of the real estate market from my friends and family members, many of whom are developers (small to large)

[akhil_007]

Originally Posted by Sebring

Agree with the points. Only, I would suggest non-wood PVC fiber board for bathroom doors and kitchen wet areas. It lasts a lifetime without the issues that come with wood. (BWR is boiling water proof, to the uninitiated)

Thank you for your timely post. I was able to get this installed in wet areas like Utility etc. While the board itself looks great in white, would you happen to know if painting it is a good idea, purely for aesthetics. Also, since the finishing is extra smooth, wouldn't paint peel off?

[Sebring]

Yeah good idea. I got it painted off-white (half matte, slight gloss).

[shankar.balan]

Originally Posted by ramnaresh_2000

Hello Fellow Bhpians,

I am looking for some advice related to real estate, I would like the experts to pitch in and provide your valuable advice and

It's good if you’re buying a house to live in yourself
But evidently you’re thinking differently.

Property is a good investment if you have plenty of surplus cash and plenty of time. Property is best bought with cash down.

Taking a loan and paying interest, and then sitting and expecting rental income to cover the cost is not very realistic.

The reason is that the rate of interest is usually in the 9-10% or higher range. And the rental income ROI is about 2-3% at max. That leaves a rather large gap in the middle, which you hope will get filled by appreciation.

Well, appreciation is a gamble. Real Estate is all about location; the more commercially successful, upmarket the location, the higher the desirability, appreciation and rent you can get.

If I were you and had a goodly sum of capital and willing to do an on going SIP too, then I would invest in the Mutual Fund Market - Equities - slowly and steadily and watch the power of compounding take over.

You’re only 40. In 15 years you will actually see how much your net worth increases through compounding.

Build your corpus first, create your power through compounding, keep it liquid in the manner specified above and then diversify it.

[tanwaramit]

Originally Posted by Sebring

It lasts a lifetime without the issues that come with wood. (BWR is boiling water proof, to the uninitiated)

Actually, BWR is Boiling Water Resistant
BWP is Boiling Water Proof

BWR would resist water for a few months, years, but can give away.

BWP is more sturdy and can withstand water for several years.

[Oxy]

As a landlord, would you rent out your property to a couple in a live-in relationship?

Personally I don't care, but are there effective methods to handle a potential backlash?

[ninjatalli]

Originally Posted by Oxy

As a landlord, would you rent out your property to a couple in a live-in relationship?

Personally I don't care, but are there effective methods to handle a potential backlash?

Yes; as an owner, I see it pretty much same as renting out to a family in all terms. If it helps, I would suggest to you/them to let your neighbors assume their marital status. That's pretty much what was suggested and worked very well for me (as a renter) for many years across Mumbai, Ahmedabad and Bangalore based rentals. Worked like a charm; never faced issues.

[am1m]

Originally Posted by Oxy

As a landlord, would you rent out your property to a couple in a live-in relationship?

Personally I don't care, but are there effective methods to handle a potential backlash?

Depends on how you are willing to handle any potential complaints. The law is completely your side and on the tenant couple's side. If any jobless, nosy neighbors complain to you, if you are firm the first time and say they are not breaking any law and they are not causing any trouble, the neighbors usually back off. Depends on you.

Kudos to you for having an open mind! I've seen totally nice young couples unnecessarily questioned in my own neighborhood by jobless aunties and uncles. When they were the least troublesome tenants in the neighborhood, and several "officially married" couples were absolute nightmares as neighbors!

Originally Posted by ninjatalli

If it helps, I would suggest to you/them to let your neighbors assume their marital status.

Actually, I thought this is what most couples do anyway. I'd think they wouldn't go out of the way to declare their non-married status to avoid unnecessary questions/harassment.

[ninjatalli]

Originally Posted by am1m

Actually, I thought this is what most couples do anyway. I'd think they wouldn't go out of the way to declare their non-married status to avoid unnecessary questions/harassment.

The owner's stamp of approval becomes more relevant to neighbors than how the tenants' behavior or response to questions on marital status is perceived. A casual statement by the owner say in group chats / visible rental ads establishing the validity of (only) family tenants will pre-emptively shut up the neighbor inquires/questions for the entire duration of the tenant stay. Even brokers can do that for house rentals that are maintained by them.

[2000rpm]

Any Mumbai based brokers here?

How much rental can I expect for a 500 sq ft carpet office space on LBS, Between two upcoming metro stations? Next to Capgemini Complex in Vikhroli. Next to Randhawa Motors, Vikhroli.

Also, how difficult or easy is it to find a tenant for the same in that patch?

[Oxy]

Thanks @am1m and @ninjatalli. Your perspectives really helped!

[audioholic]

Originally Posted by ninjatalli

The owner's stamp of approval becomes more relevant to neighbors than how the tenants' behavior or response to questions on marital status is perceived. A casual statement by the owner say in group chats / visible rental ads establishing the validity of (only) family tenants will pre-emptively shut up the neighbor inquires/questions for the entire duration of the tenant stay. Even brokers can do that for house rentals that are maintained by them.

How do these neighbors even get to know if the couple is married or just live in? Do they ask for marriage certificate?

[Sebring]

Originally Posted by Oxy

As a landlord, would you rent out your property to a couple in a live-in relationship? Personally I don't care, but are there effective methods to handle a potential backlash?

In mumbai, I had neighbours who were living in. They split up in 45 days, and went their separate ways. This scenario is common.