Hi! I'm 43 - and in India, that's OLD!

[mangylore]

HI DesiGirl,

I have actually factored in the school fees( Rs 3000 in a CBSE Convent institution) based on actuals along with other expenses based on reality checks during our annual visits there.

I have a detailed Excel Sheet in which I have tried to capture every small expense. The only thing that I have not included is a driver's salary which I guess we will not employ there. We currently do have a driver for the last many years here but this I guess is a luxury which we will give up when we return.

I would love to know about your expense data using money s/w? Would it be ok to share it?

FIREINDUS, the purpose of the property investment is to hedge inflation after a decade or so. The rentals are incidental.

Regards,

[DesiGirl]

I'll share some data Mangylore :

* Grocery and general expenses are in the range of 10K. Very high inflation , doubled in 5 years.
* Maid is 3K
* Bill including cell phone, internet , electricity, cooking gas etc. could easily go upto 5-7K .
* petrol woulld be 3-5K . + Maintenance of vehicle and extra transportation cost.
* Kids fees including bus fee (+ annual books, uniform, shoes etc.) are 15K per month. BTW inflation here has been 15-20% per annum. It started at 8-9K per annum for us. Also different coachings, extra curricular, overhead expenses would grow with kid.
* Home maintenance payment (to flat society) would depend as well as entertainment , eatout, gifts, festivals etc. .
* Vacations would depend on taste and pocket but I would easily put 1L + per annum. Clothing would cost 30-60K per annum for decent stuff.
* Now Car Insurance, Life Insurance, Health Insurance, Medical expenses , water filter maintenance , Beauty/hair cut/grooming services for family etc. .
* With this long retirement u even have to keep provision for home maintenance (paintiing, furniture, appliances, car replacement etc.)


So my broad take is 45K per month would work regularly probably (depending on life-style) but may not cover irregular expenses, vacations etc. . Also inflation has to be provided at the range of 6-8% atleast. For example when we came milk was Rs.26 per litre, now it is Rs.40 so some expenses jump like crazy. Also

Let me know if you have any specific questions.

-desiGirl

[FIREINDUS]

Thanks Desigirl and Manglore for the responses.

Looking for a route to generate passive stable income that will support this 60000 Rs per month.
Bank interest, inflation is a high risk.
Indian equity and US taxes, not sure if it is the right equation.
Rental income, there is always the argument that land (in a safe neighborhood) appreciates much more than an apartment.
Hence, with above thought process, now asset allocation is skewed with real estate.
Lets see...

[keeleyxt]

I lived in India for a while and I must say the pace really is mind boggling compared to parts of Europe where I come from. You've set yourself up a goal and I guess the deadline is good enough a reason for you to get started. Good luck.

And consider this an even better luck as this happens to be my first post on this site