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Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

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Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

Last updated: 5 hours ago
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  • Re : Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

    I have a slightly different view. You can include it in the networth if you have liability/ loan against the house in which you stay. If you are staying in a loan free home, you can avoid including the home you stay as it skews your networth to a great extent and you might be complacent about your investment..

    It is how you look at it and use it in your financial planning..

    Originally posted by revhappy View Post

    Yes I would. If you dont have your own house, you need to rent. So that is monthly outgo of cash. So there is an impact on financials when you buy vs not buy and in strict accounting terms, you need to account for this impact.

    If you own a house you could sell it and generate cash and then go and rent somewhere. So you need to account for the value of the house in your networth.

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    • Re : Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

      Originally posted by Sharpj View Post
      I have a slightly different view. You can include it in the networth if you have liability/ loan against the house in which you stay. If you are staying in a loan free home, you can avoid including the home you stay as it skews your networth to a great extent and you might be complacent about your investment..

      It is how you look at it and use it in your financial planning..


      Yeah, that is an interesting point of view.
      My networth is now 5.75cr. I could come back to India and buy a house worth say 1cr and write off that amount and track only 4.75cr as my networth and my future expenses reduce drastically due to lack of rental expense.

      Or, I could continue renting in which case, my networth remains 5.75cr, but my future expense is also higher and I need to service it using my higher networth, which is possible.

      So, yeah, I like your way of your thinking.

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      • Re : Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

        Originally posted by Sharpj View Post
        I have a slightly different view. You can include it in the networth if you have liability/ loan against the house in which you stay. If you are staying in a loan free home, you can avoid including the home you stay as it skews your networth to a great extent and you might be complacent about your investment..

        It is how you look at it and use it in your financial planning..


        I think the deciding factor is not loan/liability but whether you plan to live in owned house for remaining life or not.

        If yes, then exclude it from Net worth since its locked in a dead investment.
        if no, then include it since you plan to sell it one day.
        'LIVE FOR INDIA'

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        • Re : Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

          Originally posted by jaijai View Post

          I think the deciding factor is not loan/liability but whether you plan to live in owned house for remaining life or not.

          If yes, then exclude it from Net worth since its locked in a dead investment.
          if no, then include it since you plan to sell it one day.
          It is not a dead investment, it reduces you future rental expense. It is kind of an account thing. Reduce you present asset value and simultaneously reduce your future expenses also(when you own your house). Or increase your present asset asset value and increase you future expenses also(when you dont own your house)

          It is essentially an accounting methodology. For example you own a house in one city but rent in another city. You are getting x rent and you are paying 1.2x as rent. How will you account this? You can again write off your asset and just account for the difference in rents as part of your cashflow.

          But what if you have more than 1 house? Then it starts blurring, because it is not just expenses going down, but generating income also. There is no right or wrong, it is what ever suits you for your own accounting. Since we are not reporting to any regulator, but ourselves.
          Last edited 1 week ago.

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          • Re : Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

            Originally posted by revhappy View Post

            It is not a dead investment, it reduces you future rental expense. It is kind of an account thing. Reduce you present asset value and simultaneously reduce your future expenses also(when you own your house). Or increase your present asset asset value and increase you future expenses also(when you dont own your house)

            It is essentially an accounting methodology. For example you own a house in one city but rent in another city. You are getting x rent and you are paying 1.2x as rent. How will you account this? You can again write off your asset and just account for the difference in rents as part of your cashflow.

            But what if you have more than 1 house? Then it starts blurring, because it is not just expenses going down, but generating income also. There is no right or wrong, it is what ever suits you for your own accounting. Since we are not reporting to any regulator, but ourselves.
            You are right about rental expenses (or gain if rented out). But its more than Accounting Method, its about cash flow and whether you can change this cashflow or not.

            1. If I am staying in my own house that I do NOT plan to sell for whatever reason, then no cash inflow or cash outflow in my entire life -> "Dead" investment. You can use a different term because its saving rental but that's notional.

            2. if I plan to sell it, then there will be cash inflow due to selling and cash outflow whenever I move to rent or buy another house. Then, you evaluate it as an active investment.

            Same applies for 2nd or 3rd house.
            'LIVE FOR INDIA'

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            • Re : Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

              Originally posted by jaijai View Post

              You are right about rental expenses (or gain if rented out). But its more than Accounting Method, its about cash flow and whether you can change this cashflow or not.

              1. If I am staying in my own house that I do NOT plan to sell for whatever reason, then no cash inflow or cash outflow in my entire life -> "Dead" investment. You can use a different term because its saving rental but that's notional.

              2. if I plan to sell it, then there will be cash inflow due to selling and cash outflow whenever I move to rent or buy another house. Then, you evaluate it as an active investment.

              Same applies for 2nd or 3rd house.
              Yes, lets just call it a goal achieved. Buying a house is a goal. You accumulate money to achieve goals like retirement, buying a house etc. When you spend part of your corpus and buy a house, you deduct that amount from your corpus and you also tick off the goal.

              But if you observe carefully, the meaning of the word Net-worth, what is your worth, then you have to include your house. Because you can sell it and raise that money. But from a tracking corpus perspective, you may wish to exclude it, that is upto your accounting.

              If I buy 10 rolce royce cars of 1cr each, even though it doesnt generate any cashflow, it is part of my networth. If I go bankrupt, those rolce royce will be sold to generate cash.
              Last edited 1 week ago.

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              • Re : Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

                Hey guys.. Do you have any opinion of Bayer Crop Science India limited with a long term view of 2-3 years

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                • Re : Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

                  Yellen as the Treasury secretary seems to be the trigger the market needed to touch 13000. I am in sidelines now.. yes the SIP will continue and if there are any installments, they will fetch me a little less..
                  Is anyone looking at any interesting stock ideas..

                  Markets going up or down is the nature of the beast.. Just do not throw caution to the wind.. Markets will test your patience... It will give you opportunities to enter.. Do not go all bull even if the commentary is bullish and always buy good stocks with quality management if you are buying

                  revhappy so you timed it well..
                  Last edited 1 week ago.

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                  • Re : Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

                    Originally posted by Sharpj View Post
                    Yellen as the Treasury secretary seems to be the trigger the market needed to touch 13000. I am in sidelines now.. yes the SIP will continue and if there are any installments, they will fetch me a little less..
                    Is anyone looking at any interesting stock ideas..

                    Markets going up or down is the nature of the beast.. Just do not throw caution to the wind.. Markets will test your patience... It will give you opportunities to enter.. Do not go all bull even if the commentary is bullish and always buy good stocks with quality management if you are buying

                    revhappy so you timed it well..
                    At this time I am pretty satisfied with my allocation to equities. I am 44% invested. I feel it is just right. I dont feel the urge to buy nor sell. This feels like perfect Buddha middle ground. I dont think I ever felt this good in the past about my allocation. I was always feel under allocated or over allocated.

                    I have also saved record amount in my salary savings this year. Due to lack of vacation and generally staying at home. Although I am very frugal, I have saved 20% more than last year. My annual savings is 8% of my networth. So next year I will add another 8% to my networth. This needs to allocated. So I think the risk that most people are going to face is increased savings glut and not knowing where to put the money. We are likely going to have a big asset inflation, house prices as well as Nifty. So buy on every dip, should be the mantra.
                    Last edited 1 week ago.

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                    • Re : Indian Stock Advice Trading Strategies Trends Market Predictions & Regulations

                      I am planning to encash the profits in my SIP's and continue them. Is this the right thing to do? Any suggestions please

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