Is the Real estate story real? The size of the real estate industry in India is estimated by FICCI to be around $12 billion. It is growing at a pace of 30 per cent.
Everyone is taking a look at Real estate these days. Specially after the stock market volatility, there are questions on whether Real estate is also a bubble built up on bull behaviour or is it really a goldmine.
We must understand the background of the growth story and various market cycles involved before reaching any conclusions.
The background of the growth story will be
1. Demand supply gap
2. Growing purchasing power
3. Fiscal benefits provided by the govt.
4. Growing economy
5. Off-shoring business, including high-end technology consulting, call centres and software programming houses.
6. Huge potential for growth ( India's mortgage to GDP ratio is only 6% compared to more than 50% in US)
Real estate cycles are generally classified into 4 stages. 1. Recovery 2. Growth 3. Post growth 4. Contraction. These stages are based on property rent and vacancy rates. Presently it appears that India is in the growth phase.
Another development in this field is the number of web portals dedicated to making the real estate market more transparent. They provide internet and technology services to the real estate industry and listing of allied services to the target audience with interest in Indian Real Estate sector. Developed with a motto to reach the millions of users across the globe and reach the potential buyers and tenants, the sites is a definite improvement for the real estate scene in India. Prominent among them are www.99acres.com , www.magicbricks.com , www.realestateonline.in , www.indiaproperties.com , www.abodesindia.com, www.indiahousing.com .
Health & Wellness, Self Improvement, Self Development, Relationships, Mental Health, Wealth Management, Money Management
Monday, October 2, 2006
Health is wealth
Here's a essay done by my son Shashwat Ranjan who is in Std. VI. Here it goes....
Life is not merely to be alive but to be healthy and wealthy. Virgil says that " The greatest wealth is health" A spanish proverb says that " A man who is too busy to take care of his health is like a mechanic too busy to take care of his tools". Two things which is always on our mind is Health and Wealth. They are of utmost importance to all of us. Health and Wealth decide the quality of life we lead. If we want to lead a happy life, wealth and health are both important.
Wealth is the ability of fully experiencing life. It is true that wealth will not make a person good, but there is nobody who wants to be poor, just for being good. And as Benjamin Franklin says "Wealth is not his, that has it, but his that enjoys it".
However, there is a tendency of large number of people to run after wealth. They work to gather more and more wealth. Inthe process they ignore their health. They do not take care in eating food at the right time. In the process of gathering more wealth, they also undergo a lot of stress.
So many people spend their health in gaining wealth and then spend their wealth to regain their health.
Money can buy a tonic but not health, we have to do a number of things to maintain our health . Now because of lack of exercises and proper food and stress the wealth may increase but health begins to suffer. It has been proved that overwork without care for health leads to a number of diseases. Disease like stomach ulcer, obesity are due to bad eating habits. Lack of exercises and stress leads to high cholesterol, Blood pressure and heart problems. So it is better to take care of your health.
If we have health, we probably will be happy and if we have both health and happiness we have all the wealth we need. Health and intellect are two blessings of life. Happiness lies first of all in health.
Mahatma gandhi says that it is health that is the real wealth and not pieces of gold and silver.
Taking care of one's health should be a continuous process. We should follow a routine of exercises and proper food. It is said that exercise if persued continuously help us to gain strength. We should also follow a diet that is beneficial for our health. Going on diet does not mean limiting your food. We should aim at improving the quality of our food intake.
Buddha says that the secret of health for both mind and body is not to mourn the past but to live in the present moment wisely and earnestly. An Arabian proverb says that he who has health has hope and he who has hope has everything.
To get rich never risk your health. For it is the truth that " HEALTH is the WEALTH of all WEALTH"
Life is not merely to be alive but to be healthy and wealthy. Virgil says that " The greatest wealth is health" A spanish proverb says that " A man who is too busy to take care of his health is like a mechanic too busy to take care of his tools". Two things which is always on our mind is Health and Wealth. They are of utmost importance to all of us. Health and Wealth decide the quality of life we lead. If we want to lead a happy life, wealth and health are both important.
Wealth is the ability of fully experiencing life. It is true that wealth will not make a person good, but there is nobody who wants to be poor, just for being good. And as Benjamin Franklin says "Wealth is not his, that has it, but his that enjoys it".
However, there is a tendency of large number of people to run after wealth. They work to gather more and more wealth. Inthe process they ignore their health. They do not take care in eating food at the right time. In the process of gathering more wealth, they also undergo a lot of stress.
So many people spend their health in gaining wealth and then spend their wealth to regain their health.
Money can buy a tonic but not health, we have to do a number of things to maintain our health . Now because of lack of exercises and proper food and stress the wealth may increase but health begins to suffer. It has been proved that overwork without care for health leads to a number of diseases. Disease like stomach ulcer, obesity are due to bad eating habits. Lack of exercises and stress leads to high cholesterol, Blood pressure and heart problems. So it is better to take care of your health.
If we have health, we probably will be happy and if we have both health and happiness we have all the wealth we need. Health and intellect are two blessings of life. Happiness lies first of all in health.
Mahatma gandhi says that it is health that is the real wealth and not pieces of gold and silver.
Taking care of one's health should be a continuous process. We should follow a routine of exercises and proper food. It is said that exercise if persued continuously help us to gain strength. We should also follow a diet that is beneficial for our health. Going on diet does not mean limiting your food. We should aim at improving the quality of our food intake.
Buddha says that the secret of health for both mind and body is not to mourn the past but to live in the present moment wisely and earnestly. An Arabian proverb says that he who has health has hope and he who has hope has everything.
To get rich never risk your health. For it is the truth that " HEALTH is the WEALTH of all WEALTH"
Sunday, October 1, 2006
India Growth story
India's GDP , in real terms, grew by 8.4 % during FY06 compared to 7.5 % during FY05.
GDP for FY06 is now estimated at Rs 25953 Billion.
GDP for FY06Q4 increased by a robust 9.3 %
India's growth story has been led by continued increase in contribution of the service sector (54%), and to a lesser extent by the industry (26.1%) .
Due to significant growth in financial and trade sector, the share of services in GDP has been improving from 49.2% in FY00 to 54% in FY06
GDP growth during FY06 was boosted by the fast growing sectors such as construction (12.1%)
Other boosters of GDP growth are Hotels, Trade, Transport and communication (11.5%)
Industrial growth is mainly attributed to manufacturing and construction sector. Mining and quarrying has been underperforming since last six years.
GDP of Rs 25953 Bn is the total of Agriculture ( Rs 5166 Bn), Industry ( Rs 6769 Bn) and Services ( Rs 14019 Bn)
The spur in construction due to retail activities and infrastructure projects will help the manufacturing sector.
Communication, hotel and restaurants activities will drive growth.
The World Bank and CMIE have a growth projection of 8% for FY07 for GDP growth.
Finance Basics
Simply put, Finance is management of money. But Finance is a very widely used term and has numerous meanings for different people. Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance), etc., as well as by a wide variety of organizations including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments, with consideration to their institutional setting.
In the words of John Bentley, “What is high finance? It’s knowing the difference between one and ten, multiplying, subtracting and adding. You just add noughts. It’s no more than that”. But Edmund Burke, an Anglo-Irish statesman, author, orator and political philosopher, observes that “The objects of a financier are, then, to secure an ample revenue; to impose it with judgment and equality; to employ it economically; and, when necessity obliges him to make use of credit, to secure its foundations in that instance, and for ever, by the clearness and candor of his proceedings, the exactness of his calculations, and the solidity of his funds”.
The pen is mightier than the sword, but no match for the accountant. Glancey, Jonathan
Jonathan Glancey is an architectural critic and writer. As of 2004, he is the architecture and design editor at The Guardian,
The purpose of this blog is to disseminate knowledge on Finance. Since it is easy to be overwhelmed with the range of knowledge and insight on Finance, we have divided the blog into two main sections: Personal Finance and Business Finance.
Personal Finance revolves around the financial planning of an individual for his family, his retirement planning, and wealth or asset creation. Tax planning, Insurance, House finance, Gold, Stocks, Mutual Funds, wills, bequests and inheritance form part of personal finance. More and more instruments like options, metals, commodities, etc are making the scene more intriguing and interesting.
Business Finance revolves around the financial management of the funds of the company, These funds can be “owned” and/or “owed”. Balancing risk and profitability is the broad objective of the firm so as to maximize shareholders value.
Eventually as Narayanan Murthy says, “the power of money is the power to give it away’. It may be comparatively easy to learn finance when compared to having a purposeful and peaceful life. So we’ll keep ourselves limited to Finance!
For starters go to this link from Wharton: http://knowledge.wharton.upenn.edu/createpdf.cfm?articleid=1541
Between eighteen and twenty, life is like an exchange where one buys stocks, not with money, but with actions. Most men buy nothing.
In the words of John Bentley, “What is high finance? It’s knowing the difference between one and ten, multiplying, subtracting and adding. You just add noughts. It’s no more than that”. But Edmund Burke, an Anglo-Irish statesman, author, orator and political philosopher, observes that “The objects of a financier are, then, to secure an ample revenue; to impose it with judgment and equality; to employ it economically; and, when necessity obliges him to make use of credit, to secure its foundations in that instance, and for ever, by the clearness and candor of his proceedings, the exactness of his calculations, and the solidity of his funds”.
The pen is mightier than the sword, but no match for the accountant. Glancey, Jonathan
Jonathan Glancey is an architectural critic and writer. As of 2004, he is the architecture and design editor at The Guardian,
The purpose of this blog is to disseminate knowledge on Finance. Since it is easy to be overwhelmed with the range of knowledge and insight on Finance, we have divided the blog into two main sections: Personal Finance and Business Finance.
Personal Finance revolves around the financial planning of an individual for his family, his retirement planning, and wealth or asset creation. Tax planning, Insurance, House finance, Gold, Stocks, Mutual Funds, wills, bequests and inheritance form part of personal finance. More and more instruments like options, metals, commodities, etc are making the scene more intriguing and interesting.
Business Finance revolves around the financial management of the funds of the company, These funds can be “owned” and/or “owed”. Balancing risk and profitability is the broad objective of the firm so as to maximize shareholders value.
Eventually as Narayanan Murthy says, “the power of money is the power to give it away’. It may be comparatively easy to learn finance when compared to having a purposeful and peaceful life. So we’ll keep ourselves limited to Finance!
For starters go to this link from Wharton: http://knowledge.wharton.upenn.edu/createpdf.cfm?articleid=1541
Between eighteen and twenty, life is like an exchange where one buys stocks, not with money, but with actions. Most men buy nothing.
Saturday, September 30, 2006
Where r Indians investing?
Looking at the fascination of the pink papers about them, your guess may be 'equities'! High proportion of disposable income, contained inflation and benign interest rates has facilitated Indians to grow their savings over the last couple of years. This is well reflected in the rise in the savings to GDP ratio (29% in FY06)
While the risk profile of Indian households has been traditionally low, the rally in stock markets and real estate has often caught their fancy. The latter is more justified given the fiscal incentive to it.
But there has been little change in the broader portfolio allocation. Despite the Sensex having multiplied 4 times in the last decade, the allocation to equities has merely grown from 4.5% of total household assets to 5% in the same period. It is also interesting to note that the same was 3.3% four decades back
The risk averseness is also evident from the fact that Bank FDs (47%) and tax saving schemes like the PPF (10%) continue to enjoy a higher allocation in the Indian investors' portfolio
While statistics reveal that equity as an asset class outperforms all other asset classes over the longer term, the investor needs to ask himself / herself a few questions
Indians are not over-invested in equities for sure! This, however, offers them a very feasible investment opportunity, if done with the correct perspectives.
While the risk profile of Indian households has been traditionally low, the rally in stock markets and real estate has often caught their fancy. The latter is more justified given the fiscal incentive to it.
But there has been little change in the broader portfolio allocation. Despite the Sensex having multiplied 4 times in the last decade, the allocation to equities has merely grown from 4.5% of total household assets to 5% in the same period. It is also interesting to note that the same was 3.3% four decades back
The risk averseness is also evident from the fact that Bank FDs (47%) and tax saving schemes like the PPF (10%) continue to enjoy a higher allocation in the Indian investors' portfolio
While statistics reveal that equity as an asset class outperforms all other asset classes over the longer term, the investor needs to ask himself / herself a few questions
- Whether you have an investment plan?
- Whether you are saddled with an incompetent advisor?
- Whether your investments are lop-sided?
- Whether you lack discipline?
Indians are not over-invested in equities for sure! This, however, offers them a very feasible investment opportunity, if done with the correct perspectives.
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