Given the current uncertainty surrounding his job, Tejas must realistically assess whether it is feasible for him to continue with the home loan. get out of real estate Investing can be a good idea to de-stress on that revenue, However, if Tejas can meet his EMI obligations for a few more months before selling, he should do so. This will help it to benefit from lower taxes over the long term capital gain On assets held for at least three years. He can borrow money from his father or take a loan against the PPF account to generate the required funds. Any premium received on the sale of your apartment can be used to make investments appropriate to your current income profile.

Tejas made the mistake of committing to a large, long-term and illiquid investment before his income and savings had stabilized. Additionally, the absence of an emergency fund hurt his chances of being able to repay loans during a temporary disruption in his professional life. At this stage of his career, where income may be uncertain and savings may be insufficient, Tejas should only consider investments that can be based on realistic projections. Short term jump in income should be invested as and when it occurs, and should not be committed in advance.

Investments should be flexible so that he can take a break in making them or even discontinue them when there is a decrease in income. It should be able to do so without penalty, cancellation or impact on the value of investments already made. Also, if he needs money to support his financial obligations, it should be possible to liquidate those investments easily.

Tejas should evaluate whether the investment he is considering meets these essential characteristics, as long as his income is a measure of assurance for him to plan for long-term fixed commitments such as real estate investments. Don’t get a degree.

Content on this page is courtesy of Center for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.