If you own one home and you are living in it and paying EMI, then see if you can partially fore-close it.
If you have two homes and paying EMI on both –
See if you can rent the second home – don’t bother about amount of rent. Rent to get cash flows going. Don’t feel bad that rental is not good enough. Trust me – it will soon be a great feeling to rent.
If you have enough money, then fore-close a significant part of it. If your interest rate is less than bank FD (which I doubt), then you don’t have to fore-close.
If you think the property will fetch a decent value, then sell it (though it is a buyer’s market)
Generate spare money every month – take a Systematic Investment plan (about 15% of your salary) – keep buying at low values for the next 24 months
Buy an asset – buy a house/apartment/land?
If you have cash and feel secure, this is a great time to buy. You can negotiate hard with builders/developers. Actually, you can write your own terms on the agreement.
First preference – Buy Land (always buy small sites, it is easier to dispose. Else farm land is a great option – big land, low cost)
Second preference – Buy House + Land (again buy from known developers)
Third preference – Buy apartment (you always wanted to buy that 3-bed/4-bed apartment from a reputed builder, but could never afford) – now is the time to ask for free. Some are being sold at ridiculous prices.