Wealth Creation

[amitrandive]

 

[amitrandive]

 

[khurshedmanjra]

Dear Amit

Is this the recent or current sector-wise scenario ?
Regards
Khurshed

 

[khurshedmanjra]

When I got married in March 1993, purchased bangles for my wife @ 3880 per 10gms.

 

[jain.er]

Any Comparison available between Indian real estate and Stock Market over a long period

 

[khurshedmanjra]

Money is not the most important thing in the world. Love is.
Fortunately, I love money.
JACKIE MASON

Ha ha ha....good one dear Amit. But then MONEY CAN'T BUY LOVE !!!

Regards
Khurshed

 

[Smart_trade]

When I got married in March 1993, purchased bangles for my wife @ 3880 per 10gms.

Gold is not a good investment.If you had invested Rs 3880 in a fixed deposit earning 10 % pa interest, it would have become Rs 31,583 and the current gold price is around Rs 27,000 so gold has given less than 10 % CAGR.

But the happiness which your wife had over these years wearing those bangles is priceless...nothing can value it.

Smart_trade

 

[Smart_trade]

Any Comparison available between Indian real estate and Stock Market over a long period

Yes, we friends have done number of such studies and we found that in the long term residential flats appreciate at 12 % CAGR. I bought a 1 BHK flat in a good locality in 2001 for 7.00 L . If I had invested the same amount in HDFC Equity Mutual Fund or Reliance Taxsaver it would have grown to over 85 Lacs and over 110 Lacs respectively. I still hold that flat and I can get max Rs 50 Lacs for it at todays prices.

Another financial number cruncher friend of mine bought a 3 BRHK flat in a good locality. He calculated in greater details over 15 years considering municipal taxes, rent received, society maintenance charges etc and found out that investing in a mutual fund would have given him more returns.

There was a further analysis in a newspaper article. There they assumes A and B are two friends. A buys Rs 50 L apartment with Rs 5 L down payment and takes housing loan for 15 years and pays installments.He lives in that apartment.

B puts Rs 5 L as lumpsum investment in HDFC Equity Fund and the installment amount he invests in the same fund as a monthly SIP. As he has no place to live, they have assumed that he takes a rental flat paying a rent of Rs 15 K per month on average.....

Comparing both the cases they found that B who invested in mutual fund has more wealth value than A even considering the appreciation of the flat...

Investments in equity and mutual funds are very good considering the tax treatment which the capital gains get.

I am told that plots appreciate faster if they are in good location but it has its problem of encroachment, land grabbing, zopadpattis, land mafia , local goons,politicians etc.....

Smart_trade

 

[jain.er]

Thanks st for the detailed post. Appreciation in flat is lesser and after some time it even depreciates. The best value is derived when you sell it off post the possession from builder and taking a housing loan to buy it is like cherry on top....

1. Plots are best
2. Buy flat on leverage and sell it off quickly post possession
3. Invest in equities

 

[amitrandive]

Dear Amit

Is this the recent or current sector-wise scenario ?
Regards
Khurshed

KhurshedJi

This is the general market sector wise scenario observed as per statistical data from the different world markets.