MF Query: How saving on EMI of home loan property can make you crorepati in 15 years
commercial property or to sell it and invest the proceeds in mutual funds and stocks for potentially higher returns.
Madhu R, a 33-year-old investor with a risk appetite, purchased a commercial property for 60 lakh 2 years ago with a Rs 30 lakh home loan. The monthly EMI is Rs 29,647, while the rental income from the property is Rs 13,500.
With the property value now at 85 lakh, Madhu is considering selling it to invest in mutual funds and stocks, aiming for better long-term returns and the potential to save on EMI payments.
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Shivansh Dandona, Head of Investment Management at FinEdge, provides his professional insights to guide Madhu through this decision-making process.
Deciding whether to sell a property and invest the proceeds in mutual funds (MF) depends on various factors, including financial goals, risk tolerance, and market conditions.
Let's explore the insights and advice offered by Shivansh on making an informed decision.
Madhu R: I have a commercial property, bought 2 years ago for 60 lakh with a 30 lakh home loan. I pay an EMI of 29,647 every month and receive rent from the property of around 13,500 every month. Currently, the value of the property is around 85 lakh. I am now facing a dilemma: should I sell the property and invest the money in mutual funds and stocks, which may give higher returns in the long run? Additionally, by selling the property, I will save the EMI amount, which can also be
