A million dollars is close to Rs. 7.5 crore, a benchmark of wealth and success. Buying a million-dollar home (or building it) anywhere other than the major cities of India is a radically different proposition to doing the same in Mumbai or Bangalore. In these cities, home prices have been on an upward trend for the last 20 years or so.
The challenge, and setting your goal
Your challenge then is to create or decipher a route to create such wealth. With a high-ticket goal like trying to afford a million-dollar house, you cannot leave anything to chance. You must be clear on what you want – from the location to the layout of open areas, bedrooms, bathrooms, additional facilities, green cover – every aspect needs to be clear in your head.
Only depending on your paycheck to afford a million-dollar home could be a Herculean task for many and could take many years to fulfil. Paychecks can be disrupted, as the COVID-19 pandemic has taught everyone, jobs can be lost, and emergencies could make a dent in your savings.
So, how do you mitigate this and still achieve your goal?
Start investing at a young age
With many options at their disposal, Indian investors have opportunities to increase or create wealth, beating inflation. Thus, it makes sense to start taking advantage of these opportunities sooner rather than later. It is only a question of when and how to harness these means. There are enough financial instruments out there for you to invest in – shares on the stock market, mutual funds (including systematic investment plans or SIPs), exchange traded funds (ETFs) – all long-term options that can grow your money at a rate that could eventually make you afford a million-dollar home.
The idea behind investing
Invest regularly, with your intended investment goal in mind. If the goal is a million-dollar home, find out how much you need to invest periodically (monthly, quarterly, or any other period). It is also important to set a time horizon for your goal.
Say you decide on a 15-year plan to achieve your million-dollar dream home; working backwards will tell you how much you need to invest to reach the goal in that period. Mutual funds tend to be viable instruments in this regard. You can use any of the mutual fund platforms available to buy these instruments.
Clarity of purpose
Your goal is clear, and you have started investing early in your life. However, life happens when you are making plans, i.e., all this clarity and planning might not make you immune to life events. And yes, this includes death, ailments, and taxes. However, these life disruptions need not unduly affect your investment corpus. Life insurance, medical insurance, home insurance – all these tools are invaluable add-ons to meet your stated goal of that million-dollar home.
Take the step to buy your home
Your million-dollar dream home is a viable goal if you have effective plans in place. Like any good habit, developing a habit to invest is best inculcated in your formative years. Stick to these basic principles of wealth creation and draw workable financial management plans that are in line with your goals, age and financial standing.
When making a robust investment strategy, it is always advisable that you seek expert help so that your investments work for you. An expert can curate bespoke plans that are aligned with your risk tolerance, investment goals and horizon, and age.
Reach out to an expert today to take steps towards fulfilling your goal of buying a million-dollar home.