Samy03

Pls help, I want to understand, is thr any relation between Share Mkt growth and Real Estate appreciation.

1) In last one yr or so.....share mkt was near 21K and RE (in gurgaon ) on its peak. but RE company share hves still not recovered.........why so......if RE companies are making gd profit......selling thr project on such high rates comapre to 2008-09.........companies shares have not been revived.

2) now share mkt behaving volatile , how do u see RE in next 3 -4 months.

3) When flats are available (resale) in 3500 - 3800 near sohna road.......is it advisable to buy 4000 near Manesar on NH 8, whr no development & in a working day difficult to reach the site.

looking forward for Manoja, Vencky, Amit MM, Tinesha and other senior member to participate.
pls ignore grammatical mistake.
.

MANOJa

As i said, i am not much aware on the shares, but the RE market looks to be heading towards correction . We could see its affects, sometime soon after the budget or in the next 3/4 months . Nobody can see the future & nobody can predict on the time frame & the severity of the correction, but correction looks to be at our doorstep .

So, if u r really not in a hurry to buy some property, waiting for a few months, might turn out to be a better idea .

The wait for buying can also prove to be counter productive . This, i have said earlier too, we r seeing "new levels of prices getting defined" in GGN & if we refrain from investing , fearing that bubble is about to burst , we could miss the bus & the next one may be too costly for us to catch .

A real tricky situation . if we wait & watch , we could miss the bus , but if we do catch it , there is looming fear of the bus getting a flat tyre , leaving all aboard stranded , in the midst of nowhere .

On properties of about 4000 on NH, i believe that properties which r on the left side of the NH & which r right on the NH should prove to be good investments, in the times to come .

Also properties in Manesar r not currently at 4000 levels, they r at about 3000 levels . With the expected industrial explosion in Manesar in the next about 4 years, Manesar could prove to be a good bet .

My views, some people will not agree to above .

harpreet_sa

Let me share my experience. I am in share market in last 18 years and real estate in last 7 -8 years. In my opinion the real estate market returns are better than share market. I with so much understanding of market could make 10-12% average return annually in share market but the returns in real estate is 20-25% annually. Some share may go up and other will loose so effective gain is less and even negative also. In real estate the chances of going down is less and percenatge of downfall is also less. This is my experience and may differ with others.

Samy03

comments awaited ............??

rohit_warren

Hi No Offense, however seems that you are not following any method in stock markets.

I am seeing stock markets since I was just 7 so its more than 2 decades and Only thing I know about stock markets is that a discipline with right method matters.
Get a winning strategy test it and stay with it - every technical indicators which ever is available has made money for its creator be he sticked with that only, and did not hop between indicators.

So, to win the stock markets simply find a winning strategy and stick to it.

Real estate vs Stock markets

There are 5 asset classes - Equity, Debt (fixed income), Real Estate, Commodity and Metals.

All the HNIs I know have portfolios consisting of these 5 asset classes and when one asset class does better than others - some of its profits is taken out to balance the other asset class,

Real Estate and Metals are normally balanced with commodity portfolio however Equity (stock markets) balances all 4 others.

Now it depends on the taste of a particular HNI which asset class he likes to be overweight on - however in longer term (read 5 years) all HNI gets to same kind of portfolio allocation.

Now when stock markets go up a lot - smart money takes out some money from stock markets to add to other asset classes and when stock markets are down money is taken out from real estate to add to equity portfolio.

This is ideal portfolio situation - local factors and personal tastes have different ways of allocation.

Rohit

MANOJa

rohit_warren, very well put, though i do not understand much of Shares etc..

agrim75

As rohit said it may be mix of equity,real estate and debt instrument.As i do not understand metals and commodity.In RE we are ready to put large sum and we can leverage our future income in form of housing loans so reward is also huge in absolute terms.In share we dont put so much money so reward is similar though over long term return from equity and RE are similar in percentage term and not in favour of RE ,If we consider 15 yr or more as horizon.I also burned my fingers in share market by not having significant gains and never able to time it so now I have adopted graded SIPs in 4 mutual funds in a month on 4 different dates.This is supplemented with added purchse of units the day market falls significantly .Hope after 15 yr this will give 15 % CAGR.As liquidity issues are there with RE investments so it should be mix of both idealy.

AmitMM

hi see the replies in blue below

prasoond

Hi Samy,

Hope you don't mind me sharing whatever little understanding i have -
Answer 1 -
Share market is now strugling to sustain 19K level. reason - Inflation, Interest rates, high input cost etc. Reality stocks have touched their 52Weeks peak (refer Unitech, DLF etc prominent player stock movement) & gone flat in last 2-3 months due to major reasons such as links with scam / Telecom scam. This is in addition to Interest rates inching up which will be a further road block to RE sale.

Answer 2-
Both share market & reality is a mix of sentiments & growth driven factors & both stock market & RE will be sluggish untill (if not more) Budget.

Answer 3 -
No it does not make sense. NH-8 and around will take much longer for End User to stay. (Schools, Hospitals, etc basic need supplier will take time to reach out. It made sense 6months (to buy cheap & wait) back but not any longer.

Thanks
Prasoon