By buld_online 
I’m a 29-year-old currently working abroad and planning to return to India in about two years with my wife. By the time I move back, I expect to have around Rs 3 crore (in INR) to allocate between real estate and investments.
My current plan: Use Rs 1 crore as a down payment on a property in India
Invest the remaining Rs 2 crore, split as follows:
60% in fixed deposits and debt mutual funds
40% in hybrid and equity mutual funds
Goal: Generate Rs 1–1.5 lakh/month in steady, low-risk returns to support our post-return lifestyle
Dilemma: I’m unsure where I’ll be working once, I return—most likely Bangalore or Chennai, but it’s not finalized. While my parents already own property in our hometown, I don’t see value in purchasing another one there.
Given that, I’m wondering: Should I buy a property now, especially in Bangalore, to take advantage of my current foreign income and pay EMIs while abroad?
Or should I wait until I’m back and settled in one city, even if that means buying at higher prices later?
I’ve been tracking real estate trends for the past 3 years, and prices in Bangalore especially have surged. I’m finding it difficult to identify good options even in the ₹2 crore range in prime areas. I suspect prices will only rise further, which makes me consider entering the market now.
Would love to hear from those who’ve faced a similar decision or have experience with timing real estate purchases around relocation. Is it smarter to lock in a property now while I have better income stability? Or should I hold off, even if it means stretching my budget in a rising market?
Advice by Akhil Rathi, Head – Financial Advisory at 1 Finance
Investing Rs 1 crore in real estate while you’re still abroad might seem logical—especially if you’re earning in foreign currency and can manage EMIs comfortably—but it carries risks if you’re unsure about your future city of residence. Buying a house in Bangalore now, without clarity on where you’ll finally settle, may leave you with a high-value asset that doesn’t align with your lifestyle needs or job location. You may also need to rent another place later, which limits the utility of the asset. Property decisions should ideally be driven by personal use or rental returns—not fear of rising prices alone.
Your current investment split—60% in fixed-income options and 40% in market-linked instruments—is conservative and suitable for steady income. However, to target a Rs 1–1.5 lakh/month cash flow, especially for the long term, you’ll need some elements of growth. Post-return, once your life stabilizes in India, consider gradually increasing equity exposure (perhaps up to 50–55%) and implementing a Systematic Withdrawal Plan (SWP) from mutual funds. This will help generate tax-efficient monthly cash flows while allowing your corpus to grow in the background.
As for real estate exposure, instead of directly buying physical property right now, you can gain diversified and liquid exposure through REITs (Real Estate Investment Trusts).
Real Estate Investment Trusts (REITs) offer individuals a chance to participate in the commercial property market without the need for large capital or direct ownership. These trusts pool money from multiple investors to manage a portfolio of income-generating properties such as office buildings, malls, and warehouses. Traded on stock exchanges, REITs provide the ease of entry and exit similar to equity investments.
These are regulated by SEBI, offer rental income-like returns (typically 5–7%), and remove the burden of managing a physical asset. This way, you can benefit from India’s real estate growth without making an immediate location-bound commitment. Once your return plan firms up, you’ll be in a better position to buy a home suited to your actual needs.
Key Benefits
REITs serve as a cost-effective alternative to buying physical property, making real estate exposure more achievable for average investors. With minimal investment amounts, you can gain access to high-quality commercial assets that would otherwise require significant capital.
They also bring the advantage of liquidity—unlike traditional property investments, which can take months to sell, REIT units can be quickly bought or sold on the market. This flexibility is particularly appealing for investors seeking real estate exposure without long lock-in periods or large-ticket commitments.
Another benefit is transparency and investor protection. Regulated by SEBI, REITs are subject to strict disclosure norms, including regular updates on holdings, valuations, and financial performance. These requirements ensure accountability and reduce the risk of mismanagement or fraud.
Income and Risk Profile
REITs are structured to return a large portion of their earnings to investors. By law, they are required to distribute at least 90% of their net income, often translating into attractive dividend yields for unit holders. These payouts are typically sourced from rental income across their property portfolio.
In terms of risk, REITs adopt a disciplined investment strategy. A significant portion—at least 80%—is allocated to fully developed, income-producing assets, reducing exposure to construction or project execution risk. The remaining 20% may be invested in under-construction projects or other real estate-linked financial instruments, allowing for a balanced risk-return profile.
Portfolio diversification
REITs are mandated to hold a diversified portfolio, spreading investments across multiple properties and geographies to mitigate concentration risk. Guidelines ensure that no single asset dominates the trust’s holdings, promoting stability and long-term performance.
Foreign income advantage
In conclusion, your foreign income advantage is meaningful, but rushing into a high-ticket property without certainty may backfire. Use this interim phase to build a well-diversified portfolio, with room for some growth, liquidity, and regular cash flow. Stay agile with your real estate choices—prices may rise, but the right property aligned with your life stage is more valuable than timing the bottom or top of the market.