Real Estate vs. Equity Debate

Jul 14, 2024

Real Estate vs. Equity Debate

Introduction

  • Special episode to discuss whether real estate or equity is a better asset class.
  • Common belief in India: real estate is the best for making money.
  • Previous generations have become wealthy through real estate.
  • Recent debate: whether real estate still gives good returns.

Experts Introduction

  • Rahil Ghosh: Expert in the equity industry.
    • 15 years in financial markets.
    • Founder and CEO of Autonome Tech.
    • Managed significant funds in equity and derivatives.
  • Mr. Chintan Vani: Expert in the real estate industry.
    • 10 years in real estate market research, strategic planning, and closure management.
    • Founder of Wise Biz.

Current Net Worth and Asset Allocation

  • Rahil Ghosh:
    • Net worth:
    • 80% in equity and structured products.
    • 15% in specific real estate.
    • 5% in gold and silver.
  • Chintan Vani:
    • Net worth: 25-30 CR.
    • 70% in real estate.
    • 10% in stock market.
    • 5% in gold.
    • 5% in ULIP/LIC plans.

Returns on Investments

  • Rahil Ghosh:
    • 25-30% CAGR in equity over 15 years.
  • Chintan Vani:
    • Investment doubles every 5 years in real estate.
    • Additional rental income.

Steps to Invest in Real Estate

  1. Consult with a real estate consultant.
  2. Diversify by including commercial properties.
  3. Focus on rental yields.
  4. Monitor market through apps like CRE Matrix.

Steps to Invest in Equity

  1. Diversify across sectors.
  2. Check promoter holding.
  3. Monitor institutional investments.
  4. Invest in growing sectors (e.g., equity derivatives).

Sector Outlook

  • Rahil Ghosh: Bullish on equity, especially large caps in upcoming years.
  • Chintan Vani: Bullish on real estate across residential and commercial properties.

Opinions on Each Other’s Views

  • Rahil: Emphasizes control and liquidity in equity markets.
  • Chintan: Highlights the stability and tangible nature of real estate.

Advices for Young Investors

  • Rahil Ghosh: Invest in a mix of liquid assets, structured products, and mutual funds.
  • Chintan Vani: Start with affordable properties and look for rental income.

Final Thoughts

  • Both experts agree on the need for a balanced portfolio.
  • Importance of liquidity in investment decisions.
  • Comprehensive approach towards understanding market trends before investing.

Conclusion

  • The debate showcases two distinct yet viable paths to wealth generation.
  • Personal preferences and market conditions should guide investment choices.