Re: Financial Planning / Investments for children MID-LIFE-DILEMMA (MLD)
Beyond my family and friends, this is the only forum I browse for a unbiased, non-marketing advice; from pets to cars, heart attacks to foreign settlement; this forum has helped me in so many ways.
I need advice to tackle mid-life-dilemma.
Bit of a background.
Family: I am almost 40. Structural Engineer in MNC; Oil & Gas domain. Spouse runs an interior design and an event management company. Kids: 8 Y/O and a 2 Y/O. Two Dependent Parents.
Monthly Income: 2 L Salary (Self) + 15 L per annum from Spouse
Assets: Living in own house, Used BMW X3, 2 million in Stocks (Unlisted and Equity), Owns a house in my hometown, invested in in a plot in the suburbs and 2 flats which will be ready to handover in the next 2 years. Miscellaneous assets: 10 L or so.
Liabilities: About 25 L home loan.
Now, after listing down all the assets and their appreciation till date versus the predicted appreciation based on the historical trend, we have decided to sell our house. Details below.
Subject Property data: It is a 3000 SFT, G+2 independent house in a gated community. We bought it in 2016/17 for 75 L and now the current market price is around 3 CR. We have estimated that the current property may not appreciate another 100% in the coming 4 or 5 years.
On the other hand, we are losing heavily by sitting on a property which is worth 3 CR not appreciating at the same as it did in the past 2 years; and only saving us a rental out-go of 40K per month.
The Plan: Considering the appreciation aspect, we are planning to sell this property to invest in the following domains which would yield us a better Return on Investment.
1. Stocks: We have some reliable guidance with in our network. A percentage of money we are going to get from the sale of house goes into investing in stocks.
2. A commercial property: This would give us a constant flow of income on monthly basis. However, the appreciation of these sort virtual spaces is not great. This is mostly for those monthly incomes.
3. Residential Flats: Again we have some very good network to invest in residential flats by which we can earn 100% appreciation in 3 or years or so. This is a hybrid plan for both long-term appreciation and regular monthly income source.
4. Plots: This is long term investment plan.
5. Unknown territory: We wouldn't mind venturing into random unknown territories. 10% of investment goes into this. Any suggestions are wlecome.
Other Notes:
We are used to selling, purchasing and flipping cycle. We did this 3 times in the last 10 years or so. However, this one slightly different. Because during all those transitions, we moved from one owned property to another. This time we need to shift to a rental property, may be temporarily or I may choose to remain in rental property forever. Please read on.
We calculated the rental out-go versus the income from the profit after sale. They all seem mathematically profitable / biased towards a rental model.
I am also thinking about NOT staying in another own house ever again. One, considering the domains which can appreciate faster; two, if I don't like something, or if I have to move to a different place considering a young family, I can just check-out and check-in a lot more easily.
My thinking is, if we establish a robust multi-source income plan, I can afford a rental property of 50K without much pinching.
I understand that there are way too many different variables; factors from political to micro and macro economical situations, inflation, job markets, attrition rates etc. to arrive at estimated appreciation and returns on investments etc.. However, I would not mind raw advices or directions. This is my first step towards the next turn.
Questions: Am I on the right path? Or is it completely insane? Are there any professional organizations or financial advisers who can guide me? I would love to have advices from TBHP forum. As I said, this forum has a unique bunch of different people with domain knowledge, common sense and out-of-the box thinkers too. Please help.
Last edited by facelyft : 11th February 2024 at 14:25.
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