The last time I wrote here, I was planning to make yet another Apartment. Unlike last time this one is under construction, which is a move away from my usual recommendation to always go for ready construction.
I’ve listed my reasons in the previous article for taking the plunge with an under-construction property. It’s a reputed construction company and the location is absolutely amazing! I’m expecting the property rate to increase by the minimum of 20L to the maximum of 50L by the time the construction is completed by the end of 2026.
I just completed the loan procedure through my bank and the EMI turned out to be way less than what I was anticipating because I couldn’t get the entire 90% as loan. Unfortunately I’ve had to put up more upfront money but that’s fine. I’ll of course keep making extra payments like last time. This should be easier considering I had earmarked more for the EMI amount.
So how much is the EMI? Not beating around the bush, it’s going to be INR 1,26,000 per month. And I’ll be making 40k as an extra payment each month to start off. My plan is to immediately give it up on rent and use up the rent to make extra payments each month once I get hold of possession. I would like to close this Homeloan as well as soon as possible.
IMO once I’ve paid off the Homeloan, I should be able to LeanFi even after considering the maintenance, property taxes, and repairs required, which is huge!
Worst case scenario, I pay off the loan in 30 years. Best case scenario I pay off the loan in 9 years. A LeanFi in nine years doesn’t sound bad. Additionally my LeanFi number includes expenses for rent, however, with current scenario I’d rather go back to my hometown where I don’t have to pay the rent and make that as my base allowing me a good enough cushion to travel and do other activities.
I’ll continue to invest in Indices going forward but the amount I’ll be able to invest would be much lower than what I would normally do. The current priority is to clear off the Home loan.
CoastFI
Here’s how much I need to reach CoastFI
April 2024: 25,00,000
June 2024: 25,00,000
With current savings rate it would take about 12 years to reach this stage.
BaristaFI
April 2024: -70,00,000
June 2024: -70,00,000
With the current savings rate it would take about 20 years to reach this stage.