Thread by @Akshat_World

RBI report states that ~80% of investments in India are locked in Real Estate.

The investment in Financial Assets (eg. Stocks) ~5%.

The fascination of owning a house in India is seriously crippling the financial health of folks.

Why is a house not a good investment? 👇👇👇

1. I can't argue with the emotional reasons for owning a house.

If you own a house for emotional reasons, all good. But, it is not really an investment.

2. While different reports indicate different things, the housing prices in the last decade have not grown by more than 6.5%

3. A house is a highly illiquid (you can't sell it easily); it is a high commissions oriented product (Stamp Duty, Brokerage and other charges).

You can lose around ~15% in commissions.

4. Other viable assets have come up:

- The Indian equity markets are maturing. For eg. Mutual Funds used to be very opaque just ~decade ago (plagued with very high commissions).

- Now, SEBI has capped the expense ratios for Mutual Funds between 2-3%

5. In short:

- It is only a matter of time that people in India will realise this (especially millennials and GenZ).

- Our transition from Black money economy to a white money economy would further bolster the inflow of funds from Real Estate to other asset classes.