Free Honda city- What Next?. Investing Avenues for 2009.

Well recent times have being crazy for me. We are blessed with other second daughter on new years eve and it was keep me busy for a while. With bit uncertainty over my job thanks to economic scenario, it was only natural that i could not find time to write much.

Still keeping track of turn of events, i was wondering the market and RE direction, till the turn of events at least gives some hints.  With India inc credibility and its image taking a beating, it would be a tough year  ahead. Unless the economic makes a U turn first half should be worrisome.

Meanwhile I came across big free bees from chennai builders. S & P set the ball rolling by offering a brand new honda city car worth 8.5 Lakhs for free when you book their Futureville villas for 75 Lakhs and above. I suppose more builders would take a cue of them and offer different incentives.

While its turning out to be a nice buyers market with RE caught in Bears grip, its a matter of time when Bulls will return.

I was talking to a friend of mine, who lost Rs 6 Lakhs worth of ESOP stocks because of sudden demise in share value. Well i calculated, just 3 friends of mine lost Rs 16 Lakhs because of share falling from 220 to one tenth of it. Thanks god, i was not offered ESOPs.

I was wondering what investment is safe now?. Invest in stocks ,only to see it go down.  Mutual funds risky either because of the financial institute which runs it or because all mutual funds are tightly coupled to stock markets or debt markets.

Investing in gold is a good option, but its always risky holding huge amount of gold at home and appreciation is slow and no intermediate yields on investment.  Investing in Land is good, but title problems and land grabbing is discouraging.

I feel investing in Flats,  ready to occupy should be your best bet. Market  slowdown, builder eagerness to listen is turning out attractive. Rental yields on  flats is always decent and not to forgot capital appreciation after 5 years horizon.  Invest with caution and you should come out clean.

Let me know your thoughts

12 Comments

  1. Senthil

    Yes I agree with you . this is the begining more such offers are to come in real estate.. regarding investment on flats i mostly agree with you but would like to add to it. the retturn on investment on flats will be ok for flats on the lower end of the market say 25-30lacs.. and will it be a better investment if we take loan i am not sure on it especially high priced ones.
    If you are going to live in the flat then its a differen scenario all together. But more or less its going to be a tough year for many of us.

  2. Senthil

    http://www.indianexpress.com/news/buy-our-unsold-flats-at-current-rates-squeezed-realtors-to-ask-govt/399424/

    another article on real estate where its leading too. Madras till now remained insulated on the downturn, but soon will catch up with rest of the country on correction

  3. Siva

    I agree. there is no place in today’s condition as a safe place to park your hard earned money. But my bet is FDs in PSU banks. Block the FD for a long term with the higher rate(Guess 10%) and worry nothing.

  4. shyam

    congrats uday on the new arrival

  5. Patricia

    I also looking forward to the answered to this question, I asked my friends and they think that, it is safe enough to invest in flats.

  6. Senthil

    FD is a better option in today’s scenario.. but banks insure only upto 1lac rs on the deposit. (PSU are better bet on this as govt will not allow it to fail)

  7. Prem

    Uday,

    Congrats on the new arrival.

  8. senthil

    RE is lost as an investment option. its getting corrected on its own. but if you are paying to stay and enjoy its then a different ball game as such. currently fd ‘s are more attractive than RE investment even after some price drop that has happened recently

  9. Senthil,

    Appreciate your comments. I am against investing in flats which runs in crores ori several lakhs.

    Be sensible while investing. i feel second hand homes with 1000 lesser then market price is a good bet.

    Ofcourse as i said, it worth waiting for clarity from markets and then invest.

  10. senthil

    Yes sensible investing will make sense.. especially second hand property with rental returns in range of 4-5% is good in the long run. so that you don’t get burned out much if at all a don’t occurs in the RE

Leave a Reply