How your Realty portfolio can support your retirement?

Make Your MONEY work for you!

Indian job market has evolved significantly since the opening up of the economy in the early 1990’s. With jobs now tilting towards the private sector and government existing a lot of the businesses where it can only add as much value or things related to national security, the task of planning your retirement shifts completely on to an individual’s shoulder.

We in India all have been seasoned to believe in either of the 3 options for retirement:

  1. LIC policies
  2. Government pension
  3. Mutual fund or Equity portfolio

While each of the options above is good have you ever wondered that having a real estate portfolio can also help you sail through your golden years? And that too wonderfully!!

Let’s assume you start working at 21 and buy your first house when you are 25 years old. Below table explains to you with some basic assumptions on how each house will self-fund for itself. Remember every penny saved adds on to your wealth. Also remember buying a property always should be done with enough study or through an expert who can guide you on areas which have potential to appreciate, builder credibility and can also help you plan your Real Estate portfolio.

As you see per table below a steady income of rental at about INR 2 million per year from your real estate portfolio along with almost an 80% return. Remember none of this assumes the benefit you accrue due to tax savings. Leverage large payouts like bonus, ESOP and other payouts to reduce your home loan or create a corpus to fund a new buy.

Remember 35-45 years is the peak of your career so use the best of your years to pay off the loan taken for the 3rd house so if you retire by 45 you have minimal loans to service.

Retirement Investment Plan

Do reach out to me at ritesh@houseey.com for further questions. Very shortly I will write a comparative on equity versus real estate returns which will expand on this concept.

(Visited 112 times, 1 visits today)

Leave A Comment

Your email address will not be published. Required fields are marked *