Posts Tagged ‘Real Estate’

Real Estate Bubble In India – Get Ready Folks

Tuesday, September 17th, 2013

Indian Real Estate market has attracted investors in the past ten years, just like how a new sweet store attracts kids. In fact, it was one of my top three investment opportunities in the last decade.

indian-real-estate-bubble

As a simple example, an apartment that cost 20 Lakh Rupees (approximately 40K USD) ten years ago, would sell for anywhere around 1 Crore (approximately 200K USD). This kind of appreciation has never been seen anywhere and people were very happy about this because no one expected this.

Here is a simple incident…A friend of mine went to see a land in the morning and the land owner (who was just a farmer, selling his land) said it would cost 20 Lakhs per ground (2400Sq.ft.). We assured that we would come back in the evening with the advance with an intent to buy as soon as the verification is completed. He went in the evening and the land owner said it costs 30 Lakhs per ground as another party had come and agreed for that amount and promised to come back with the advance.

This kind of a market is called as ‘Open Unregulated Market’ and is not a healthy one – may be good for selling fish or vegetables, but definitely not long term assets.

Owning a home is the single largest universal dream and above responses would create frustration and disappointment anywhere in the world, but it happened quite a lot in India. Why? Here is a gist of this cycle:

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Top Three Investment Opportunities for this Decade

Monday, November 26th, 2012

Two years ago, I wrote about top three investment opportunities in the past ten years (2001 to 2010). They are gold, real estate and Indian stock market. At that point in time, as I was working with Citi, I stayed away from commenting about the stocks I held with Citi, to avoid any kind of conflict of interest. Now that I am no longer with Citi, I have decided to talk about the Citi stocks that I held from 2001 to 2007. Yes, I sold all of them in 2007 at 54.80USD per stock. Today, they are trading at an equivalent of 3.60USD per stock I had held.

These have been my top three investments in the past decade: Gold, Indian Real Estate and Citi. With some simple planning and good luck, they have been quite effective and had returned between five to ten times the investment value during a 10 year period.

In the past two years, I have invested a lot of time into trying to identify the next three best investment opportunities for myself for this decade (2011 to 2020).

Gold is not my choice of investment anymore (I mean I would not buy anymore, but keep what I have), as I expect the rate of growth in Gold in the next ten years to only be double of what it is right now, and will not grow five fold or ten fold as it did in the past ten years.

Indian Real Estate market does not interest me any more as I feel there is a major correction coming with the next ten years. India is not the preferred outsourcing destination anymore as the past ten years have proven that the rewards are far and few for companies trying to save money by outsourcing to India. Some US companies have smartly moved their operations from the major cities such as New York, Boston and Los Angeles to smaller towns such as Dallas, Buffalo, etc.

Citi is also not my choice of investment anymore – nor are any of the financial institutions in their current form, as they have to be restructured.

I have identified one investment opportunity so far….

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Top Three Investment Opportunities

Thursday, October 14th, 2010

Having spent the last ten years managing money, I have noticed three significant investments, which have been a runaway success. Some of you might have had other investment options which were quite successful in the past, but the ones listed below are the ones where I have personally seen good returns.  Based on that experience, I am providing the details as much as possible on each one of them:

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