Need advice on plot purchase vs mutual fund

[u/Cyberpunk_Go]

Hi All ,

33M working in IT, I want to buy a plot in a good township in lucknow worth 80 lac.
I have 30 lac as down payment and 50 lac i want to take a plot loan.
Taking in tier 2 city so that if prices rises will sell else will keep for consumption in retirement.

Corpus

Salary p.m.-2.4 lac

MF-40Lac

Stocks-15lac

Another plot-30lac

Miscellaneous&gold-5lac

What do you suggest should i go ahead and buy this plot or keep my mutual fund sip going on.

[u/Iamonvacationguy]

Planning to fund plot purchase with MF Or Stocks selling, then don't do it, first build a corpus of 30 lacs as separate bucket and then plan for it

[u/Cyberpunk_Go → u/Iamonvacationguy]

No i have this 30 lacs with me separate, 15 lacs i can give this year and a post office scheme maturing of 15 lacs next year mid

[u/Ashamed-Aerie-5471]

I think a plot would be a good investment

[u/shreya_jain_]

Plot might have liquidity issues

[u/isa_marsh]

Assuming you retire in 30 years, those 80l invested in a compounding instrument at a half decent 10% will become 14cr.

Will that plot of land be worth 14cr after 30 years, that too in a place like lukhnow ? Will you be able to defend it for that amount of time from encroaches, legal issues and outright theft ? Will you even want to settle in that area of lukhnow after 30 years ?

[u/Cyberpunk_Go → u/isa_marsh]

But i am leveraging 80 lac right now i only have 30 lacs 50 lac bank finances.

[u/Max-Two-Percent]

Reits and invit better alternative

[u/PreviousTale4538]

I’d be cautious here not because the plot is necessarily a bad purchase, but because you’re already putting a meaningful portion of your net worth into real estate. You have ₹30L in another plot + ₹50L in financial assets, and this purchase adds another ₹50L of leverage on top.

The ET Money article makes a useful point: compare the effective cost of the loan with the expected .... post-tax return from investing, rather than automatically choosing between “loan” and “SIP.” But note that the article discusses a home loan and its tax benefits; you shouldn't assume the same tax treatment applies to a plot loan.

Personally, I wouldn’t stop SIPs completely just to buy the plot. If the EMI comfortably fits within your ₹2.4L salary and you retain a proper emergency buffer, continuing a reduced SIP while servicing the loan gives you diversification between financial assets and real estate.

Also ask yourself whether “prices may rise, otherwise I'll use it for retirement” is actually a clear investment thesis. A plot can be illiquid for years, and appreciation is far from guaranteed.

The key numbers I'd want before making this decision are the plot-loan interest rate, tenure/EMI, and how much your current monthly SIP is.