Home Buyers Or Property Owners should not panic on Stock Market dips, says, Sandeep Sadh
It’s always said that there is a connection between the Stock Market and Real Estate Market.
Investors in stock markets make money and buy homes and Investors who sold their homes for a fortune Invest back in the Stock Market for being more liquid and having a diversified portfolio.
The Indian side of the story compared the Global financial situation does look robust and these corrections or dips on the BSE or the NSE are cyclical things and investors or home buyers should not make calls to either sell their portfolios or their homes due to an immediate negative impact.
The impact of the stock market going down surely is psychological to an extent but a quick turn around back on Tuesday of the Sensex towards the end gives you some respite and hence it’s important to not to take decisions based on an immediate stock market situation.
The job market, banking sector, industrial growth etc should be steady in India for a few years and hence the economic fundamentals look strong and there is no reason to worry about a recession or a downturn.
Only a prolonged stock market or a huge correction can lead to worry in the real estate sector as the investor wealth does get eroded and it takes another cycle to be replenished.
Real estate as an asset class gives lease rent return on the invested amount of above 5 percent, on the current market value around 2.4 to 3 percent and combine the same with capital appreciation the number surely gets into double digits. So looking at long term, real estate does give you a stable and robust return.