Your Financial Plan

 

I am 37 and work in a Gulf country. My family lives with me. Since the tax rates are increasing here, I plan to shift my family to India. With that, my surplus will also increase. I plan to return to India by 2024 and buy commercial property for my monthly income. Is this possible by 2024?

Dayalan

Solutions: Based on your current investments and income, when you return to India, it should not be difficult for you to live only on rental income. However, if you are not able to raise the rent based on inflation, you will face a shortfall in meeting the monthly expenses. So, it is better to build a corpus to meet the contingency.

To buy a commercial property for ₹1.25 crore in six years, you need to invest ₹1.2 lakh a month, and it should earn 12 per cent return. Assume you buy a property of 1,500 sq.ft and let out at ₹30 per sq ft, you will receive ₹45,000 as rental income. This should be sufficient in a town like Salem.

 

 

However, to meet primary education expenses, you need to build a corpus. If you invest the remaining surplus of ₹30,000 for the next 72 months and earn a return of 12 per cent, it will account for ₹31.4 lakh. With interest income, you can meet the expenses on account of primary education. With existing fixed deposits, you can meet expenses on account of emergency and your daughter’s marriage.

While shifting your family, buy a health insurance for ₹5 lakh and before you migrate, a term insurance for ₹75 lakh.

The writer is a SEBI registered investment advisor and founder myassetsconsolidation.com. Send your queries to blinefp@gmail.com

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