Everyone desires to have their own dream house. The moment a person starts working, it would not be wrong to say that there are three big things that s/he wants to achieve and these are a house, a car and a hefty pay package. Interestingly, considering the real estate market is at a booming stage, teh builders will of course say they not making much profit, the prices of houses across India especially in Mumbai, has rocketed to quite an extreme high. Now the prices are such, that buying a house has become like an impossible dream. 

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Some are left with no option but to knock on the doors of one lender or the other to just get started. They either take loans from banks or relatives to buy their own dream house. While getting a loan from a bank is  burdensome at a certain level, as high interest is being charged on your repayment debt amount. On the other hand, many ask for their elders help in buying a house. This does eliminate at least the interest rate dilemma. But the thought that you have to repay some lump sum to someone never leaves your sight and you are mostly stressed about it. It can be extremely stressful many times. But did you know, you can actually not have to take a loan from anyone, if you plan wisely? 

For those who are wanting to purchase a house in Mumbai’s luxurious places, all you have to do is begin an investment which will make sure that you are guaranteed with hefty amount on the back of returns that your investment generates. So, what is this big blessing of an option for the common man?

Systematic Investment Plan (SIP) comes as the best pick. The best way to describe this investment mechanism is  - little drops of water make an entire ocean. SIP is the most basic, flexible and easy way of earning big money for your hard-earned investment.

Mutual Fund SIP is currently at a booming stage, and is seen as the most convenient, hassle-free and smartest way of investment. One can invest a certain amount in SIP at regular intervals namely weekly, monthly or quarterly.

SIP is an easy step and also ensures discipline in your savings. All you have to do is open an SIP account with a financial institution, and link it with your bank account. Depending upon your investment strategy, money will automatically get deducted from your bank account on weekly, monthly or quarterly basis. 

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There are four types of SIP. 

Top-up SIP - Under this, your investment increases periodically. You can make your SIP investment by contributing in well-performing mutual fund schemes at certain intervals. One can also increase the investment amount, as salary or other income increases over the years.

Flexible SIP - as the name suggests, allows you to increase and decrease your investment amount as per the cash flow you have. By doing this, you can skip one or more payments during the time of cash crunch. Also, when you have hefty money in your hand like bonus or additional income, you can likewise increase your investment amount. 

Perpetual SIP - Usually, SIP has a fixed tenure like 1 year, 3 year or 5 years. However, by investing in perpetual SIP, you do not have to mention the end date in your mandate and let your investment increase. This helps in redeeming your fund whenever needed, or when you have achieved your financial goals. 

Trigger SIP - This one for investors with limited knowledge of the financial market. One is allowed to set NAV, index level, SIP start date or event, etc.

Now how can a SIP help you achieve your dream house, let’s understand. 

Firstly, mutual funds including large caps, mid caps, small caps and focused funds have given return in the range of 11% to massive 27%. This is better than definitely any fixed deposits, public provident fund or national pension scheme sort of investments. One of the key reasons why SIPs stand out, is that they are also partially linked with equities which means you even enjoy good gains of markets as well.

If you look at 99acres.com website, a 1 BHK flat is priced between lowest Rs 20 lakh to maximum Rs 1.12 crore. These depends upon the area, square foot and where the house is situated.

For instance if you begin a SIP of Rs 5000 per month where the expected return is at 18%, then you are bound to receive future value of Rs 5 lakh in five years time, Rs 16.8 lakh in 10 years time, Rs 46 lakh in 15 years time and Rs 1.2 crore in 20 years time.

By end of 25 years of your investment, you will gain a massive Rs 3 crore.  Overall, in 25 year’s your investment will be only Rs 15 lakh and gains would be Rs 2.8 crore, all things being equal..

Now if you are only manage to afford an SIP of just Rs 5000 a month, then a 1BHK flat is possible dream within 15 years of time, where you can buy a house in areas like Panvel, Thane, Malad, etc.

But if you wait for a little more, then by definitely in 20 years' time you can get your dream house in areas like Borivali, Bandra, Andheri and even some areas of South Mumbai.

Going ahead, let’s say if you want to buy a 1 BHK flat and can manage to do an SIP of Rs 10,000 per month at expected return of 18%, then your future value would be Rs 9.8 lakh in 5 years, Rs 33.6 lakh in 10 years, Rs 51 lakh in 12 years, Rs 91.9 lakh in 15 years, Rs 2.3 crores in 20 years and a massive Rs 5.8 crore in 25 years. 

For 25 years, at Rs 10,000 per month SIP, you would have deposited a massive Rs 30 lakhs but there is no comparison over your behemoth gains. This would mean, you can get your dream house within 12 years time, and if you wait for 25 years then a definitely luxurious areas like Nariman Point, Dadar, Parel of Mumbai is possible places for your house.

But if you decide to make an SIP of Rs 15,000 at expected return of 18%, then there is no stopping in achieving your dream sooner. As your expected future value would come at Rs 14.6 lakh in 5 years, Rs 50.4 lakh in 10 years, Rs 76.5 lakh in 12 years, Rs 1.4 crores in 15 years, Rs 3.5  crores in 20 years and a massive Rs 8.7 crores in 25 years. For a while 25 years, you have just invested about Rs 45 lakhs.

The above mentioned calculation also goes for buying a 2BHK house, as they are available at lowest Rs 23 lakh to maximum Rs 3 crore in Mumbai depending upon area, square foot and society.

In case if you plan to buy a house in next 5 years, still SIP is good option as you can make partial payment with the returns gained from this scheme. While other half you can opt for loan, with this, your debt burden will definitely be less.

Also, the gains on SIP is seen to go even higher than the calculated percentage, as markets are seen at an extreme heights in coming years.

Recently analysts at Karvy Broking Firm said, “We forecast Sensex to reach 45,000 (14,000 for Nifty) by the end of 2019. If the BJP were to cross the halfway mark on its own, Sensex could reach about 47,000. A loss for NDA and formation of a coalition government which the market reads to be unstable could lead the Sensex to decline to 30,000 (Nifty 9,000) in the immediate aftermath of the elections."

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This means surely SIP is a money making magnet. Also as an investor, you can keep aside the required amount needed for buying a house and continue investment to gain massively further down the line. You can also retire a crorepati in your desired house with SIP!