[SmartCat]

Originally Posted by hserus

You are not factoring in the fact that you have to repay the home loan and pay several lakhs more to the bank. And then taxation savings have not been factored in. Anybody and everybody who bought housing as an "investment" generally bought it using his own money rather than through a loan.

Land prices in an average large city has historically grown at around 18 to 20% CAGR over the past 10 to 20 years. So even if land is purchased on a loan, it has proved to be profitable.

I read a Cushman & Wakefield report on apartment prices in Bangalore, and it has appreciated by 12 to 15% CAGR over the past 10 years. Add 3% rental yield and investors have got a net 15 to 18% CAGR returns.

As long as asset appreciation rate is higher than home loan rate, you can make money in real estate. Not sure about future real estate returns now though.

Originally Posted by alpha1

In addition to the excellent points that you have made, there is one more. People get cheap home loans.
In addition, the home loan allows people to utilize the leverage aspect. On his own a person may be able to invest only Rs 10 lacs, but because of home loan the same person are able to invest Rs 50 lacs. A 10% return on Rs 10 lac investment will always remain less than 10% return on Rs 50 lac investment.

Good point there.

But actually, you can take leverage in stock market too -

1) Pledging existing shares and taking a top up loan (whose proceeds are invested back into stocks). You will usually get 50% of the pledged shares value.

2) Buying Futures of a stock and "rolling" positions forward. This is equivalent to taking a position with 20% cash and 80% "loan". There is roughly 10% per annum cost involved in this exercise (of rolling forward Futures positions), and you can consider this as cost of the "80% loan"

Originally Posted by hserus

@J_Ravi sir - please pace yourself the markets may fall a bit more too.

I fully agree with you. That's why, I bought 10 shares only today. I will add more during further falls. Only one out of 3 buy orders was successful today.

[gupta_chd]

What is your view housing finance companies in general and DHFL especially.

It has got hammered down a lot, almost more than 30% in last one week.

[swiftnfurious]

Does anyone know of an online portfolio service where I can manually enter the buy price (different from CMP) & Target price and track the real time performance against these?

I have an account with Moneycontrol but I don't have the option of giving a buy price or target. It takes the CMP on the day of adding the stock to the portfolio and gives the gains / loss as per that.

Originally Posted by gupta_chd

What is your view housing finance companies in general and DHFL especially.

It has got hammered down a lot, almost more than 30% in last one week.

DHFL generally has a very positive feedback from whatever I have read. I personally think that a 30% correction is a great time to buy. I was tracking it on & off in the last month and it did move up & also posted a good result I believe.

[audioholic]

Originally Posted by swiftnfurious

Does anyone know of an online portfolio service where I can manually enter the buy price (different from CMP) & Target price and track the real time performance against these?

I have an account with Moneycontrol but I don't have the option of giving a buy price or target. It takes the CMP on the day of adding the stock to the portfolio and gives the gains / loss as per that.

I have the moneycontrol app on my phone, and there is an option to manually enter the buy price. Initially when you give the trade date, it will display the price, but this can be edited and I always do that, since there will be a slight difference.

Any picks for the coming days for short - medium term gains?

[karanraheja]

Originally Posted by audioholic

Any picks for the coming days for short - medium term gains?

Short term market might go up but eventually it might go down only. Im expecting Sub 8000 levels in Nifty. Look at Maruti , Motherson Sumi , TVS Motors , Hero Motorcorp at every dip . NBFC's like Bajaj Finance , Capital first will be attractive if they correct another 10% . Housing Finance like Repco , HDFC etc. will also be good investments with 10% correction.

Just a few minutes back, my buy order for additional 10 M&M @ 1195 was successful.

[audioholic]

Brought 50 SBI at 252.70. Plan to hold it for medium - long term.

[hserus]

Originally Posted by audioholic

Brought 50 SBI at 252.70. Plan to hold it for medium - long term.

It might grow. Who knows? Been in a fairly narrow 150..250 price band for about a year now.

And they have a massive NPA load, they are the first called upon to open branches in unprofitable rural areas, forgive debt for farmers, give loans to huge industrialists who keep "refinancing" them by borrowing more just to pay off the interest on the existing loans .. a unique privilege only extended when you borrow hundreds of crores from the bank, and they figure its best to continue to keep you afloat rather than call in the loan and sink both the industrlalist and the bank as well.

[S_U_N]

Originally Posted by swiftnfurious

Does anyone know of an online portfolio service where I can manually enter the buy price (different from CMP) & Target price and track the real time performance against these?

.

I use valueresearchonline. Their tool allows me to feed in the price at which I bought the stock. No issues!

[audioholic]

Originally Posted by hserus

It might grow. Who knows? Been in a fairly narrow 150..250 price band for about a year now.

And they have a massive NPA load, they are the first called upon to open branches in unprofitable rural areas, forgive debt for farmers, give loans to huge industrialists who keep "refinancing" them by borrowing more just to pay off the interest on the existing loans .. a unique privilege only extended when you borrow hundreds of crores from the bank, and they figure its best to continue to keep you afloat rather than call in the loan and sink both the industrlalist and the bank as well.

Lets see. Given the tight measures being taken by the Government, isnt a 20-30% return quite sensible, even if I am conservative?

[hserus]

Originally Posted by audioholic

Lets see. Given the tight measures being taken by the Government, isnt a 20-30% return quite sensible, even if I am conservative?

They have a massive influx - one time influx mind you - of cash.

There is talk that farmers, jan dhan account holders etc are going to be placated for the cash shortage by giving them a grant of Rs.10,000 each.

And then SBI just wrote off hundreds of crores of rupees in unrecoverable debt from Mallya etc. Yes unrecoverable means they won't lend there further and they will keep trying to collect, but they generally do this if and only if they see zero further chance that they'll ever recover that debt.

So they need to build up their cash corpus a lot - and there are many many more industrialists just waiting to turn into NPA sooner or later I suppose

The other thing that might help - or more likely hinder - them is this proposed merger of all the different state bank group banks (SBH, SBT, SBBJ etc) with SBI. Unless they also rationalize staff after that - which the unions aren't likely to allow - the chances are that they will suffer with a huge bloat of extra staff, similar to the Air India / Indian Airlines merger.

Further, SBI - like the LIC - is one of the perpetual cash cows that are routinely used to bail out sick PSUs by investing in them, giving soft loans etc.

Just now, I returned from Karnataka Bank, K G Road after submitting my application for my entitlement of 100 right shares of Karnataka Bank at ₹ 70 each as the last date for submission of CAF was extended from yesterday to 28 November due to the demonetization muddle.

Added 10 M&M @ ₹ 1,155 each today.

[sharninder]

What's everyone's opinion on Manappuram Finance. The stock is down almost 30% this month, although still up 150% YTD. I feel like the company is doing decently and once this whole dust settles down, it's got to grow. The results were decent this quarter and they're anyway looking to go beyond gold.