Sunday, April 21, 2013

Investors - Time To Consider Shifting To Buying Real Estate

Investors in Stock Market will have a tough time with fierce volatility expected in 2013-2014. What we are witnessing today is not correction, but beginning of a deep correction, if not a long term Bear Run. Frankly speaking, a deep correction or a cyclical Bear Run have almost the same devastating effect on investor money. Such market conditions are beneficial only to smart traders and that too in the futures market, because when the market is trending down then the futures trader can go along-with the market and sell  futures position. As the market slides lower, such a trader can make profit by buying (squaring off his position) at lower level. In this manner a trader can make profit when the stock market is correcting/ in the grips of a bear hug.

In second paragraph of my blog-post on 14 Apr 2013, I had emphasized this fact that the present time is not conducive for Investors in stock market. This time in the stock market is only for traders. You can access that post here :http://archana-archdeb.blogspot.in/2013/04/execute-your-trading-plan-now.html

Commodities Market
If it is not stocks, then can you invest in commodities? The answer is 'No'. The commodity prices also have nose dived and they are just precursor to even worst things to emerge in the commodities front. Gold which was considered by investors as safe haven, is no longer so. We can expect 2013-2014 as very bad years for investors in Gold. Single day historical drop in gold prices of more than Rs 1500/- is just telling us that Bear Phase in Gold has started. After a Bull Phase of nearly 12 years, one can easily conclude that the Bear Phase will last at least two years.

Property Market
The only place left in India to invest now is the property market. That too in select places where the growth potential is maximum. With lot of policy easing lined up by the Govt (as Finance Minister is making us believe) to attract foreign capital, property market is set to boom. What will help is softening of commodity prices, which in turn will lower inflation and that will give impetus to RBI Governor to lower rates. On the sidelines, the current account deficit (CAD) in India will improve with price of oil cooling off and gold losing its luster with investors thereby lowering demand and import bill. All said and done, real estate market is ready to take off and that is the place to park your money, if you are an investor.

For investing in real estate, three most important things to be kept in mind are as follows:-
  1. Your property investment  should be in a place with high potential of economic activities.
  2. The location of the property should be such that it has very high connectivity, by Road, Rail and Air.
  3. If you are looking at a property purely from investment angle, then it makes more economic sense to buy a commercial property, since the returns will be mush higher than residential property.
Besides what is given above, in places where you know Metro Rail is going to expand in a couple of years, such locations have an exponential potential of  giving you high returns. Place like the new Commercial Business District(CBD) of Gurgaon towards Manesar is one such sweet spot for investors and lot of builders have started executing their grandiose plans there. After a detailed survey and analysis, I would recommend one such builder and his not to be missed offer of Assured Return of 12% till completion of the project or five years whichever is later.

State of the Art commercial property is Aquarius IT Park at Sector 74 Gurgaon, being developed by Vigneshwara Builders and the only builder in this commercial business district of Gurgaon who has been given the permit to build a rooftop helipad. Those investors who are interested to get the exact details should contact their General Manager (marketing), Mobile No : 09359210404.

Best of Investing!!!

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