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Showing posts from February, 2017

WHY REAL ESTATE INVESTMENT BEATS THE STOCK MARKET?

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The stock market has always played the role of a barometer to the economic mood of a nation. Real estate is one of the prime elements in the latter context.

In fact, an interesting and important relationship exists between real estate investments and the stock index. While both offer a profitable investment opportunity, both also carry risks that complement each other.

A common belief has been that the profit margins associated with stock investment has been higher when compared to alternative asset investments. Stocks are liquid and flexible, whereas real estate is not. Also, stocks offer growth rates that real estate investment can rarely match.

Lastly, stocks are also easier to acquire and operate than buying a property as an investment. Investment property also includes several added elements like insurance, maintenance, taxes, legal fees, broker commissions, etc.

It has also been observed that dramatic movements in the global stock market will throw up salient differences betwee…

An ‘Uttam’ Budget For The Real Estate Sector

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After last year surgical strike on black money with demonetization, everyone was keenly awaiting for the budget of 2017. This was the first budget which was presented on the first week of February, normally budget was presented on the last week of February. From this year onwards railway budget was merged with the annual financial budget. The real estate contributes approximately 15% to India’s GDP. Even the the prime minister’s office tweeted about the budget - “The Housing sector stands to gain immensely from the Budget”. Prime Minister Narendra Modi said it was a ‘Uttam’ budget to strengthening the hands of the poor.

The biggest cheer in the budget was the reduction of tax rate of individuals earning between Rs 2.5 lakh to Rs 5 lakh to 5% from the current 10%. Many of consumer for the affordable home come under this category. With tax rate cut, now consumers will have a good opportunity to buy their dream home and many banks are now offering loans with low interest rate. Now consu…