Thursday 1 December 2016

Don't bottom fish in real estate, construction stocks

Real estate transactions are also a massive component of the financial economy.    Astrology and Numerology Trading Tips

Stamp duty from sales is a big contributor to the revenues of states. Mortgages are the major income stream for housing finance companies and also a major contributor to the income for banks, and other NBFCs. The marketing of real estate, with its large advertising component is another big revenue source to the media. Real estate development is a vital component in revenue assumptions for the development of toll roads and metro constructionsystems.   Stock Market Astrology Tips


Construction is dependent on real estate activity and in infrastructure projects. The bigger constructioncompanies have become real estate developers, to build, operate and transfer projects with long timelines. A lot of construction money is already stuck in projects which have stalled for various reasons (usually related to land acquisition and environmental clearances and other clearances).   Intraday Trading Tips

Demonetisation will hit real estate very hard. In the short run, all secondary transactions are frozen and the lack of easy cash flow has led to a freeze on ongoing projects. Primary real estate sales in many cases are “near white” meaning the cash (or black component) is relatively low. But, there are large cash expenses involved in project completion (black payments for the land; bribes to local government officials). So, those projects are also stalled.    Commodity Trading Tips

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