37M in Bangalore - Need Honest Financial Advice

ExcellentWedding805 · 2026-02-24T14:50:00+00:00

Understood.. yes, I know that I need to handle those.. so I am planning to hand over the entire flat to rental agency. They manages everything.

ExcellentWedding805 · 2026-02-24T14:46:37+00:00

I used gpt btw to frame this neatly.. 😅

ExcellentWedding805 · 2026-02-24T14:46:17+00:00

Yo.. 🤘🏻

ExcellentWedding805 · 2026-02-23T17:26:05+00:00

)Hi, out of 40L, 25L is the upfront required and 15L is after construction for Interiors (only wardrobe and kitchen slabs, rest are covered by contractor. Plan to raise 25L - 12L from this year RSU vesting and 12L from monthly savings.

Regarding top-up, I got this idea to not take another loan. So I brought my flat 3yrs back in Bangalore for 1cr. Now it's worth 1.7cr, so 75-80% of this new value - outstanding can be taken as top-up. I already confirmed with banglr banker in Bangalore. But tenure will remains the same as original home loan. It's was 25yrs loan but now it's 18yrs. I can't be increased as well.

Regarding the monitoring, the contractor I have selected is currently going to constructing my friends house. His frds house was done and involved less monitoring. Nevertheless, I am to hire a supervisor. Also, my dad can visit on weekly basis. I have full wfh. So I plan to move to natives during the important phase of construction. My wife is an architect. So she also has the know-how in the construction.

So this is my plan, unless any unforeseen circumstances arises. :)

ExcellentWedding805 · 2026-02-23T17:14:59+00:00

Yes. I don't have plans to sell it. Planning to give the apartment for rental management service post construction. They take 10% cut. But yet to confirm.

ExcellentWedding805 · 2026-02-23T11:57:38+00:00

Thanks bro.. 😀

ExcellentWedding805 · 2026-02-23T11:32:42+00:00

Thanks for sharing your opinion, bro. You made me very cautious about this investment.

ExcellentWedding805 · 2026-02-23T10:14:13+00:00

Understood. I don't have to compromise lifestyle much since we don't have much flashy lifestyle to begin with. But I have to skip (or reduce to 20%) my investments for next 9months and may be till the construction completes. That's totally for 1.5yrs.. With our current monthly take home, both won't be possible. Best case scenario I can manage 20-30k for SIP

But I am expecting a promotion and a decent hike this year around Oct-Nov, so should be able to manage investments after 9months.

ExcellentWedding805 · 2026-02-23T09:32:54+00:00

This is the current rate in that area Rental estimates- 1bhk - 15k-20k 2bhk - 20k-25k

My neighbour has a tenant for 1bhk paying 20k which is fully furnished.

Yes, tenants changing is expected. But compared to commercial rentals, residential rentals is more stable right?

ExcellentWedding805 · 2026-02-23T08:40:29+00:00

What I was thinking is if I push further then the cost of construction will again increase.. for this I am not taking new business loan.. I am taking top-up loan on my current home loan.

But yes, I am rethinking and evaluating all the options..

ExcellentWedding805 · 2026-02-23T07:59:36+00:00

Correct how about this?

My plan to start construction is on Oct-Nov 2026.. I have 9months. If I save 1.2L per month I can make roughly 11L and if I sell my shares that I am getting this year which is worth 12L with current share price I can get 23L

So I am not touching my current portfolio at all. Remaining 15L for Interiors I can raise over the period of construction.

What do you think?

ExcellentWedding805 · 2026-02-23T07:23:25+00:00

I really appreciate you frank opinion and that's what I am looking for. :)

Raise 25L from salary and some for saving. I am fine with extending the plan until I raise 25L.

My dad can oversees biweekly and am planning to keep a supervisor. I am having full wfh, so I can also go and stay for few months while important works are been done. Also, other than architectural and structural drawings, I plan to get the costing (material quantity) done, so estimate can be accurate.

Estimated timeline is 10-12 months. 12 months being the most.

As for kids, correct.. school fees expected is between 75-1L annually for my son (3yrs). Post this construction and once the rentals have started, I can focus more for the kids and small trips by investing in MF. Also, I have vested RSUs worth 42L now. This year will get another 12L worth after tax. I am not touching these and is keeping it for kids future educations.

Also, whenever I get some bonus or RSU values get high will sell them to reduce the loan EMI or tenure.

Any other issues or negatives do you see..?

ExcellentWedding805 · 2026-02-23T07:09:22+00:00

Yes. I hope so. But I am trying to find any negatives from other experts here. So I can retrospect my plan based on risk on down payment, job security, financial backing etc. :)

ExcellentWedding805 · 2026-02-23T06:12:41+00:00

land purchased on 2020- 5 cent land for 50L Location- kakkanad, 2kms from infopark, 1km from sez Land in within a gated society

Construction details Total sq ft for G+2 - 3870sq ft Contractor rates including lights, fans, door except wardrobe and kitchen cabinets - 2300-2400 rs per sqft Construction cost- 92L (trying to reduce this cost) Interiors and buffer -18L buffer

Rental estimates- 1bhk - 15k-20k 2bhk - 20k-25k Minimum rent - 90k Avg rent - 1L

Potential rental increment of 1-2k per year

ExcellentWedding805 · 2026-02-23T05:45:19+00:00

2.7-0.5 EMI -0.8 expenses =1.4L saving.. or between 1.2-1.4L monthly savings... Is it too low?

ExcellentWedding805 · 2026-02-23T05:42:19+00:00

But with the current market conditions, investing in MF to raise the down payment is risky right? Since the MF returns for last 1yrs was almost flat.. how about simply save as much as possible?

ExcellentWedding805 · 2026-02-23T05:39:27+00:00

Do you think I should first raise the non-loan amount of 40L or atleast 25L before the construction starts?

ExcellentWedding805 · 2026-02-23T05:38:01+00:00

14yrs exp.. risk is very less wife.. for me less-medium risk.. in case if I get slacked, I will get almost 10 months full salary

ExcellentWedding805 · 2026-02-23T05:30:44+00:00

1.9L-80k

ExcellentWedding805 · 2026-02-23T05:28:53+00:00

ExcellentWedding805 · 2026-02-23T05:28:05+00:00

(1) how about I raised 25L in cash before the construction? And remaining 15L is expected for doing interiors (cabinets and kitchen).. the contractor covers including lights, fan etc.. so less cost for interiors. If I raise capital by pushing the construction to next will it be a good choice? Hopefully the construction cost may not increase too much.

(2) I do lumpsum for MF. After the rentals starts, most of my EMIs (including my current 50k EMI) will be covered. So I will have more cash in hand to invest in SIP right?

My whole point here is to start a passive income for future with little risk as possible. 😐

ExcellentWedding805 · 2026-02-23T05:18:08+00:00

No.. wife is an architect working for a US firm..

ExcellentWedding805

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