Advice on existing portfolio and should I diversify by buying land. Please advice!
My current portfolio is below
- Mutual Fund: 1.68 Crores
- FDs : 1.66 Crores
- Insurance maturity in 2027 (bought these when I was young and didn't know better): 16 lacs
- Existing take home income, post-tax: 8 lacs per month
- Savings in bank accnt: 17 lacs (this is temp till I invest)
- Other investments+ bonus: 12 lacs
I am interested in purchasing a piece of land right next to my family in a rural location in south India. The reasons I am more optimistic about this land despite all the cases of land being problematic is:
- Land is right next to existing family property (which I will ultimately inherit)
- Sellers is known through my family neighbours and docs checked.
- The seller has agreed to sell fully through bank transfer so white transaction of approx 80 lacs
- Land is close to two metros (about 2 hours by car / train and developed infra as compared to other rural places. Roads, PHC, tourist spots etc)
-Major train junction is 30 mins away
-To ensure we protect from other neighbours or something commercial coming there and have access to all roads
- Indian cities are increasingly unlivable so I prefer the rural location as it is also being developed with good roads and infra.
- I work remote and don't need to live in a city
My question is: is buying land (after all due diligence with all the checks) advisable as part of my existing portfolio. I understand there are always risks. I also expect to be employed for another two-three years at least at the same income if not higher. I have plans to relocate abroad temporarily but long term plan is to come back to India. As the land is just adjacent to family they will be around and settled in the area for more than 15 years so know the community etc.
Grateful for any advice