Is it possible for me to buy a land and construct a house?
Ramesh is an interior designer from
Calicut, Kerala. He is aged 39. His wife is a home maker. They want to buya
piece of land and construct a house in 5 years. The expected cost in today’s
value is Rs.45 lakhs. Currently he can set aside Rs.12 lakhs for the goal.
Further, he can save Rs.5000 every month towards this goal. He has investments
in mutual funds, chit and life insurance plans. He wants to know if it’s
possible to achieve his goal and if so how to go about?
Ramesh’s situation was analysed and provided him strategies and advice to achieve his goal as given below:
Requirement |
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Cost of buying land and construting house in today's Value | ₹ 45,00,000 | ||||
Cost after 5 years assuming price change @ 10% p.a. |
| ₹ 72,47,295 | |||
Resources Available |
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Assets set aside for the goal in today's value |
| ₹ 12,00,000 | |||
Monthly Savings that can be allocated to this goal |
| ₹ 5,000 | |||
Suggested Asset Allocation |
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Assuming Moderate Risk Tolerance and Short time horizon the following asset allocation is suggested to deploy the assets allocated for the goal and to allocate the savings |
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The above
case study is for illustrative purpose only and is not a recommendation or
advice for a similar situation you might face since there are many other
factors which will require a different approach to your situation.
PrognoAdvisor,
the leading Online Financial Planning company, can help you solve your
financial concerns and issues through its well-defined analysis and planning
process.
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