When it comes Investment option and if your are looking for long term capital gain then Real estate investment is the best option. Stock market in unpredictive today and in long term also.
See in both the sectors no one can correctly anticipate about the returns or loss or gain.Nobody can doubt the transparency in segments like stock markets, bonds, and mutual funds. The profitability of investment in these sectors can be anticipated by studying past performances, recommendations and also based on personal experiences.
In the first quarter of the year the real estate was falling badly..but now it has stabilized and so can be good as investment.. but one cannot ignore the fact that there is unsold inventory and shortage of liquidity cash...
Stocks too were not doing well but now after the stable government in the centre the situation has improved highly and has also crossed the Rs 26000 limit.... so it is very good as of now..
See my frnd Santosh , investment in a slowdown economy is a bit tricky and risky as you pointed out. and is not the same as investing in the boom period. In a slowdown, you might have invested in realty and you want cash flows for personal needs or working capital improvement in business, but you might not be able to sell the property right away due to absence of buyers at your desired price. In such cases, the investor has to sell the property at a discount or has to wait until more buyer approach.
I feel stocks are quite risky investment process.In stocks, if you are aware of stop losses and are risk averse, you can liquidate your position any time. !!
According to my experience two things should be followed in both the cases, time and principal amount. When we invest money to get a accountable returns within a certain period of time; then time in mind should be clear on such aspects. In stocks, investment can be increased and decreased as per the whims and fancies of an individual but this kind of flexibility is not available in real estate.
A nice question Bhaumik, see the fact is that you might get be attracted towards a ready to move 2 BHK flat worth Rs. 45 lakhs and according to your assumption, you think that the location and approach to the property will fetch you somewhere close to Rs. 60 lakhs in a year's time. But remember, for this, the required amount of investment is Rs. 45 lakhs. Things are different in case of under-construction flats. They cost much less and also the returns are higher if you hold for long.
But guys I think people who are interested in real estate investment they will wait for the price to fall and also the economy to settle down.Real returns depend on at what point you enter the markets. Stagnant prices are discouraging both the buyer and the investor.
Guys I feel Stock market is more risky,performance of most stocks is lacklustre in case of equities. Even if you consider the biggest of the stock market Niffty, they cannot assume whats coming up next! Stockists remain confused on which way the markets will go in the coming weeks.
Hi Deep a very very question regards to the current situation of the real estate economy.Both have their merits and demerits. Current economic environment in India is such that it is a difficult choice to make. Real estate is in a bad shape and inventories are piling up. Even though the rates are more or less unchanged the demand is witnessing a slow loop!