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Share Market Vs Real Estate

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Share Market Vs Real Estate

Last updated: July 19 2018
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  • Share Market Vs Real Estate

    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.
    .
  • #2

    #2

    Re : Share Market Vs Real Estate

    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 .
    Please read IREF rules | FAQ's

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    • #3

      #3

      Re : Share Market Vs Real Estate

      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.

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      • #4

        #4

        Re : Share Market Vs Real Estate

        Originally posted by Samy03 View Post
        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.
        .

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

        Comment

        • #5

          #5

          Re : Share Market Vs Real Estate

          Originally posted by harpreet_sa View Post
          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.
          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

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          • #6

            #6

            Re : Share Market Vs Real Estate

            rohit_warren, very well put, though i do not understand much of Shares etc..
            Please read IREF rules | FAQ's

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            • #7

              #7

              Re : Share Market Vs Real Estate

              hi see the replies in blue below
              Originally posted by Samy03 View Post
              Pls help, I want to understand, is thr any relation between Share Mkt growth and Real Estate appreciation.
              there definately is some co relation between RE and stocks.... Usually the money generated from one finds its way into another...

              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.
              for the indian RE companies the major issue for investors is lack of transparency and accountability...there are question marks aboit their funding patterns and the valuation/spend on land holdings which is their major investment... this is the reason the prices of RE companies have not recovered inspite of improved sales and future prospects..

              2) now share mkt behaving volatile , how do u see RE in next 3 -4 months.
              two school of thoughts here.. correction or no correction and when? i believe that the correction is still some time away as the macros are still positive ( only worry the rising interest which is due to rising inflation). i still se some upside left for RE prices( the correction talk has been on for last 5 months in which prices have risen by 10% av. in resale and about 12-13% of new launches)

              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.

              if some body has the liquildity/funds to pay 25-30% of cost upfront( thats the money required for resale projects where const. has not started) he must look for resale options both on sohna and NH8.

              else there can be some options which be considerd in new launches but after proper due diligence...

              hope this helps

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

              Comment

              • #8

                #8

                Re : Share Market Vs Real Estate

                Originally posted by Samy03 View Post
                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.
                .
                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

                Comment

                • #9

                  #9

                  Re : Share Market Vs Real Estate

                  Originally posted by harpreet_sa View Post
                  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.
                  10-12% is a realistic expectation, it does not matter how much returns you get in the beginning. If a novice investor starts out, he/she is likely to experience a little losses because of inexperienced investing.

                  Eventually the rate of returns will increase as the person gets a knack of the share market
                  Last edited July 19 2018, 03:15 PM.

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