Minimum Budget for Upgrading from Panny LZ8 & Redmi 1s

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You are a little constrained with the zoom requirement and the budget. Because if you had a little more to work with you could get a entry level USED (Nikon D3100,3200 or 3300 or the Canon equivalent) with a Prime lens for about 20-25k. Shoot RAW with that and between some minor lightroom adjustments and the ridiculously good aperture of a prime, you could get some fantastic shots even in very poor lighting. I use the combo of a D3200 + 50mm lens currently and it beats every camera phone I have used and both the P&S I have owned.

You could get the same DSLR with a zoom lens for about the same price but I wouldnt really recommend it. For one, its not really compact in any sense of the word, a 50-200mm lens is a pain to lug around. And you cant really shoot zoomed in at low lighting anyway because you just wont be able to keep the shutter steady enough (and a Tripod sucks for anything except static photography). Lastly, the low light performance for most starter zoom lenses is very underwhelming.
 
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Sorry for the late reply. Didn't realize you had posted.

...... USED (Nikon D3100,3200 or 3300 or the Canon equivalent) with a Prime lens for about 20-25k. ....

At that price point, I'm not really saving much over an RX100. It will have as fast a lens as a prime lens. It will also have some limited zoom, be portable & less intimidating for others in the family & passers-by. The downside is the smaller sensor & consequently poorer IQ. But I'm not too concerned about that since the RX100 is good enough for me & I'm really not going to pixel-peep.

In any case, I've put this purchase on hold. I'll probably wait until my LZ8 P&S gives way, &/or I feel I'm financially well-off & can justify spending 25k+ on a cam. As things stand, I feel it's probably a better idea to rent a camera to supplement what I already have.

Again, thanks to all for their time. Much obliged.
 
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