Just Equities or Your First Home

Invest in Equities Instead! as the Rental Yields are Lower than the Mortgage & Opportunity Value Creation through Equity Investment is Huge!

“Well, No Graphs, Worm Charts etc & it’s comparison with Equity Holding Performance for similar period can give the Answer”!

“You certainly don’t have to become a Property Dealer by buying Multiple Real Estates either, it’s your call finally though”

Owning Your Own First Home is an Emotional Bliss, incomparable to any other Joy & satisfaction.

Now imagine for a moment How Real Estate Sector Drives the Equity Markets when You Buy Your First Nest Emotionally called as your “Home”

1. Provides employment to several across sectors


2. Leads to increased Consumption, Education, more skilled workforce available, leads to higher GDP Rate & hence Equity Market Cheers!


3. Multiple Sectors: Steel, Cement, Utilities & Services, Electricity, White Goods etc, benefit directly


4. Banking sector Credit Growth Increases with lowest Default Ratio & better Net Interest Margins


5. Insurance sector benefits due to Banking Housing Loans, hence more Capital Market flows


6. Many Smart Home Buyers suggested by their Smart Mutual Funds Distributors also start SIP of equivalent value of EMI, tenure in Equity Funds, creating long term hedge & Returns!


7. Now Imagine if No Body buys their First Home, Then


1. Who Will Buy them at all


2. If No body Buys & Owns, then from whom will You Rent them from & the so-called Lower Rental Yields better than the Mortgage/Equity Returns etc


3. Which Builder has Cash Holding Capacity to Build & Rent Only Model & Delayed Cash Inflows, as they Operate Build & Sell Only Model, Builders don’t work for Charity, unless they will choose other lines of Business, like food delivery!
8. It gives power to Mid & Small Cap Companies, Start Ups as Micro Caps, gaining multiple factors in Equity & Debt Growth!

So, do you really believe Equity Markets will do well with Infra, Services, Consumption Companies, BFSI etc having No business due to absence of Real Estate Sector if People Don’t Buy their First Home?

From overall Allocation perspective I don’t even consider First Home as Asset Allocation, it’s beyond Portfolio Allocation.

The Second Real Estate Property You decide to own is your actual chosen Asset Allocation!

We talk about Rental & Equity Yields better than Mortgage Cost, well, if “Nobody buys their First Home”, Why Builder Build it? They certainly don’t work for Charity!

So Lower Rental Yields, Equity Performance is forgotten reality!

In fact, when Real Estate Market does well, real estate investors make their profits and buy Equity & Vice Versa

Now with this article, Not endorsing to buy Multiple Properties & become Second Shift Property Dealer, but definitely Own Your First Home for several interlinked reasons

So, don’t get influenced by various articles on “Whether Your First Flat (as home) Vs Equity Market Investments” with various complicated Graphs, as an investment option.

“Must Own Your First Home & Invest in Equities too!”