A PROJECT

ON

“REAL ESTATE DEVELOPMENT AND FUTURE FOR

FABRICATING AND BRAND PROMOTION OF SKYARCH
ROOFS PRIVATE LIMITED”

SUBMITTED TO PANJAB TECHNICAL UNIVERSITY,

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF
MASTERS IN BUSINESS ADMINISTRATION

BY
NITESH KUMAR
RAI BUSINESS SCHOOL
A-41, ESPIRE CAMPUS, MCIE, MATHURA ROAD,
NEW DELHI

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 ACKNOWLEDGEMENT

A successful project is fruitful culmination of efforts of many people,

some directly involved, and others who have quietly encouraged and
extended their support, while being in the background. I take this
opportunity to extend my deep sense of gratitude and heartfelt thanks
to all those who have helped us directly or indirectly during the course
of my project.

My colleagues and associates at RAI BUSINESS SCHOOL continue to have

important impact on my thinking. I am in debt to Ms. Pragya
Kulshreshtha-H R executive of SKYARCH ROOFS PVT. LTD., who
have taught me a great deal as we worked together to adopt marketing
management thinking to the problems of different situations..

This dissertation could not have been written without Prof. Vikram sir
who not only served as my supervisor but also encouraged and
challenged me throughout my academic program who patiently guided
me through the dissertation process, never accepting less than my best
efforts.

He and the other faculty members, Mr. Priyank sir who trusted on me
and kept his full confidence in me. I thank them all.

I also gratefully acknowledge the invaluable suggestions and support

from Mr. Nitesh Kumar . I am also appreciative of all that I have learned
from working with industry executives who have generously shared their
insight and experiences.

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 Objective of Project

• To position the brand in the mind of customer.

• Gathering and disseminating relevant information to customers.
• Understanding and fulfilling the expressed and latent needs of customers buying
behavior.
• Building long-term relationship with customers.
• To generate the business for the company while maintaining a balance with the
company's image.
• Maintenance of adequate inventory level.
• Analyzing the current environment and work culture of store and suggesting new
ideas in order to
enhance the efficiency of the store in terms of look, sale and way of working.
• Adaptation of different marketing strategies to promote the product as well as
company.

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 REAL ESTATE DEVELOPMENT

The real estate development sector encompassing the residential townships, commercial offices,
IT parks, shopping malls, entertainment centers, multiplexes, hotels and restaurants, industrial
buildings, factories and government buildings is witnessing an unprecedented growth. There is a
spurt in suburban development of real estate for mixed use of land including residence, office,
retail shops, schools etc. Real estate sector in India is the second largest employment generator
next only to agriculture. About 250 ancillary industries directly or indirectly depend on real
estate activity.

The GDP contribution of this sector at current prices is approx. 6.5% or Rs.1,37,000 crores i.e,
over 30 billion US dollars. The steel production in India has recorded an unprecedented rise by
159.01% while Cement production has gone up by 151.64% over the last five years. Indian realty
sector is estimated to grow from US$ 15 billion in 2005 to US$ 90 billion by 2015. The
estimated demand for IT space is 66 million square feet. Similarly the commercial property
market has compounded annual growth rate of over 30% during the last 5 years across major
cities in India along with a phenomenal increase in demand for office space.

When India decided to allow 100 % FDI in this sector in construction and serviced land
development, foreign developers started eyeing India as one of the best and lucrative destinations
for Real estate development and investment. With the partial opening of FDI in retail sector, a
buoyant real estate market promises a bright tomorrow for the construction sector in India. The
real estate sector continues to receive an ever-increasing influx of funds. While more than 35
big-ticket foreign funds have already entered the real estate market, another 20 funds are likely to
enter the Indian markets in 2007. In other words, US$ 10 billion of FDI will be pumped into the
real estate sector in India.

Global giants in India's real estate sector :

Global real estate business houses like the Philippines-based Ayala, and Signature group, Och-
Ziff Capital, EurIndia and Old Lane from Dubai are keen on sizeable investments in India. And,
investors in the UK, US, Israel, Malaysia and Singapore are also eyeing the real estate sector in
India.

• Tishman Speyer of USA and ICICI have formed a Special purpose vehicle called TSI ventures
and started the real estate development in the south India.

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• US-based global investment bank Goldman Sachs and Unitech, the largest listed real estate
company in India, will set up a special purpose vehicle (SPV) with a corpus of US$ 208.7
million

• DLF Ltd is forging a 50:50 joint venture with Nakheel, a large property developer of the UAE,
for two integrated townships in India at a whopping investment of US$ 10 billion

• Zurich based Credit Suisse, the world's leading financial house, is in the process of finalising
on a US$ 1 billion fund to invest in India

• Dawnay Day International, the US$ 10 billion UK-based investment company, plans to invest
US$ 1.5 billion in the next couple of years

• Hilton Hotels Corporation (HHC) announced a joint venture company with DLF Ltd to develop
and own 75 hotels and serviced apartments over 7 years

Boom in Retail sector:

With the boom in the retail sector, there is a spurt in extremely large retail spaces. Shopping
malls with over 1 million sq ft of space have become the order of the day. About 20 such malls
are currently under construction across the country. Unitech's Great India Place is coming up In
the National Capital Region (NCR), with a million square feet (sq ft) of retail space. Atleast eight
malls covering over 1 million sq ft each are coming up In Mumbai. Three malls with 1 million sq
ft each are under development in Bangalore. With the cut-throat competition, builders are going
out of their way to be different. Specialised malls are coming up at Gurgaon, NOIDA,
Bangalore, Kolkata and Udaipur. The `Mall of India’ planned by DLF Universal along NH-8 is
the biggest mall of the world. It is proposed to have 32 acres spanning a huge entertainment area
and large city town squares offering a total retail experience.

Demand for Housing :

The demand for housing has increased phenomenally in the recent years. With the population
crossing 1027 million as per census 2001, over 200 million houses are needed for achieving the
goal of ‘Housing for All’, and nearly 30 million houses are to be built in both in urban and rural
areas. The real estate has a catalytic role in fulfilling the demand for housing for the various
socio-economic classes in the back drop of wealthier populace seeking upgraded
accommodation, shrinking household size, improved access to housing finance, tax incentives
for own properties, etc.

This responsibility should be shared by large-scale partnerships involving public, private and co-
operative sectors.

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 REAL ESTATE PRESENT WORLD

Realizing the fact that shelter is one of the basic needs according to the Maslow's Hierarchy of
needs, probably we, the human-being became conscious even about the other strata of the society
in order to go up to the higher podium. Probable cause may be different, but obviously staying in
a style and dealing reasonable with the property seem to be one of the major motivation factors,
which had stimulated the human brain to work for the idea of Real Estate.

First step to modulation of Real Estate

There was a dearth of proper planning on Real Estate until 1960, as till then the entire
highlighted area of concern was on

• Salesmanship
• Professional development
• Licensing

Rethinking

Mr. Pierson and Gordon-Howell take a bold step to show their rethinking about the Real Estate
on their well-prepared report, which makes others to evolve their thought-process up to
university-level.

Their approach led people to open up with two major idea of version:

• Multidisciplinary

• Financial Management

Those two versions gave the opportunity of:

• optimum use of socially and ethically acceptable Real Estate education

• The need of Real Estate market in order to maximize the proper allocation of resources

Main setback faced at past

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The most alarming fact that invariably took the sleep away from the eyes of the Real Estate
companies and the property owners over the last past decades, is the fluctuation and instability of
the profit or rate of the market.

Real estate email newsletters are an important information tool in a company's arsenal. They are
usually dispatched to present or earlier clients to keep in touch with them and to update them on
current market trends.Information on landscaping, relocation, financial and emergency services
is given out through various marketing activities to ensure success in the long run by soliciting
additional business.

Present scenario

During 21st century, real estate business has become a ballgame of qualified-buyers, apart from
the success of Real Estate companies. As for the last few years, people who dreamt of their
dream-house has bought one for them and even who didn't, invested money in order to gain some
profit.

Real Estate Fund evolution

Previously, the one way to invest money for foreign Real Estate is by buying it. Nowadays,
people are encashing their interest in investing money in Real Estate stock of overseas.With the
launching of Global Real Estate Fund by Charles Schwab, the global market scenario of Real
Estate business has taken a different shape.

Achievement of the evolution

About four hundred investments trusts and real estate operating companies are tracked by
Schwab Global Real Estate, out of which sixty are getting the benefit of investment by the
Schwab Global.

Graph of investment

The fund shows the following statistics:

• 35% of its assets in the U.S.

• 12% in Canada

• 25% in Europe

• 27% in Asia

Survival of the fittest

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So the Real Estate companies have become fit to survive with the guidance of buyers who
decides the focusing area of their effort. Though even without the buyers, Real Estate market has
not experienced so much of downward force on a home price as was expected, because of;

• rapid capturing of the well-researched land

• land cost depended on the final home cost

Recent dilemma in Real estate

Currently, Real Estate companies are facing a problem due to the homes with medium price-
range .Though they are confident to get buyers for low and high range houses, but now they are
overloaded with medium range houses. They constructed those houses keeping in mind the cost
effectivity, but for the reason of lack of occupancy, they are running loss on the resources of the
Real Estate companies.

Future Prospect

The future prospect of Real estate business entirely depends on the matter how the Real estate
companies deal with the clients, and gain their trust. In order to do so, few changes in current
situation are required:

1. Raising the quality of the service

2. Raising the quality of the product

3. Lowering the price

4.Providing the best possible material for customer's safety

After providing those well-planned services, Real Estate Companies can expect to gain the trust
of the customer and profit in their bag.

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 INFORMATION ON REAL ESTATE

Skyscrapers and various towers around the world shows one story of success for past few years,
and it is the running-strong achievement of Real Estate. Now we always use the word Real estate
or realty. But do we all really know the meaning?

What is real estate?

The term Real Estate is a legal terminology that emphasizes about the inherited natural land or
properties including houses, sewers, plants etc., which man further improvise to make it a
liveable space for unstoppable popularity of the entire world. It usually goes in contrast with
personalty or personal property or chattel.

What is Real Property or Realty?

Real property or Realty often serves the purpose as the synonym of Real Estate.

Distinguish Between Real Estate and Real Property:

For a layman, it may be the synonym. But from technical point of view it is further differentiated
in terms of

 Real Estate being the matter of land and their fixtures

 Realty being the right of ownership over real estate What Law says about Real Estate?

Statutory Law defines Real Estate with few legal terms and rights. It expresses that Real Estate is
not only the matter of land; it also encompasses mineral or machinery right attached to it.
Further, it includes that the property owner has to submit property tax return to the tax office.

In a Nutshell

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We can exaggerate the term Real Estate as the land and all its fixtures affixed with it including
minerals, gas. coal, machineries, trees, sewers etc, and all the right on it, and the compulsion of
paying tax on that property.

Types of Real Estate and Real Estate Profit & Loss

Before investing on any home, office, land or any property one should focus on the property one
is investing in. There are different types to categorize Real Estate for our benefit. Below is the
gist of the profit and Loss associated with each type:

1.Rental House:

Profit: It is the most common and easiest way to roll on with the Real Estate as it Will provide
long term business satisfaction.

Loss: We are always loath to deal with landlord, so it can give you the pain of waiting for big-
return.

2.Rent -to-own-house:

Profit: After buying the house, you have the facility to sell by rent-to -own arrangement. Here
buyers bear the maintenance cost, and you can earn higher profit From it.

Loss: You need to tactfully deal with the tenant as most of the time buyers have the tendency to
ignore the purchasing work done.

3.Boarding Houses:

Profit: Here your profit can sometimes be your loss, and vise versa. As in this case, you can
provide a room of a house as a rent to the college-goers or for single-office-goers.

Loss: Renting only a room to a young college-student can be never-ending headache to you.

4.Low-income rentals:

Profit: Other terms are like any other rentals but with higher cash return.

Loss: Similar like other rentals but with the hassle of more maintenance, repairing and tenants
problem.

5.Commercial Real Estate:

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Profit: Nowadays it is very encouraging field of Real Estate as it pays high return with the
facility of long term triple-net leases and without much management involved.

Loss: You have to face strong contender, and even one vacant storefront can lead you to great
loss at a year time

6.Fix uppers:

Profit: If you have creative bent of mind, then this is the work for you. It pays quick and easy
return.

Loss: Many risks are involved and after gaining profit you have to pay very high tax.

7:

Profit: If have good eyes for future of the property, then it may give you good return. As starting
with low during the growth and keep patient until the value rises would fetch you good cash in
your pocket.

Loss: Long waiting time may break your patience and expenses on transaction cost may not
fetch you good profit. This deal is little unpredictable.

8.Buy land, then sell after splitting it:

Profit: This simpler deal can fetch you good return.

Loss: Without the cash flow you may have to wait for a long time with huge expenses.

9.Buy and live in it and then sell it:

Profit: According to the tax-law, after fixing it up and then selling it after two years you can
gain the benefit of a tax-free profit. Then you can start up with the same process once again.

Loss: It will make you loathsome by the act of frequent moving.

10.Buy for cash sell for terms:

Profit: You can earn good cash by paying good cash here. It can yield you good return and
interest by selling it in easy terms.

Loss: You deal with your capital in the long term basis.

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 Real Estate Market Analysis
Real estate market has its own specific properties or characteristics and you should be aware of
them before making an investment.

The first aspect to be noted is the market value of a property. This can be found out from
listings that show the latest real estate market values in the neighborhood where you wish to
make a purchase or a sale transaction.

Before you get down to analyzing the current trends in the market and estimating market value of
a property, you need to be aware of the basic real estate terminologies that go into a transaction.

Finding current trends :

The next most important aspect is to find out the current trends in real estate. Is the real estate
market hot or cold? You need to understand the real estate climate to figure out how well you
can do with your transaction. At times the real estate market will favor buyers at time it will
favors sellers. Taking an example here, when there are more job opportunities in an area, more
people will want to relocate and hence the demand for real estate will be high and hence you cn
appreciate property value to increase. This means selling property and making a good profit
from the sale is something you can comfortably do at such times.

What is a seller's market?

Seller market - This is a situation wherein there is a more demand for homes than there is a
supply for them. This means seller will get a good price in sale. Sometime home are put up for
sale at prices well over their normal level. Reasons for this situation are more employment
opportunities and lower interest rates. In a situation where mortgage interest rates are lower,
getting a loan will also is easier so you can see lots of people vying this as an opportunity to get a
loan.

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What is a buyer's market?

Buyer's market - Here the price of real estate is low and a buyer does not have to spend some
much money in getting a decent property. This situation happens when the interest rates are high
and there are more homes available for sale than homes required. Job loss as a result of a
company closing down and moving elsewhere can also create a lot of sellers trying to sell of
their home to move to other areas in which they can put their skills and qualifications to use.
This is more of a depressed real estate market, but one that benefits the buyer. At such time a
buyer can state their price and get an assent from the seller for this as the seller is more interested
in selling off the property and realizing money from the sale.

Summary :

Even if the real estate market is not really what you want it to be still there are a couple of tips
on how to deal with this situation so that you can get the best of what you want to do in the real
estate market. In the case of a buyer , wanting to make purchase in a seller market the buyer's
enticement would be the low interest rate and the notion that the property can be sold off in a
couple of years for a tidy profit. In the case of a seller wishing to sell off in a buyer's market, the
trick of the trade is to be patient and wait till the right buyer comes along. Even a seller in a hurry
should wait, as so as to not lose their built up equity in exchanges for a quick sale.

Taking the services of a qualified real estate agent or real estate broker can really help out.
However, you need to ensure that those you seek services from are reputable, experienced and
trustworthy so that all the legal formalities pertaining to your real estate transaction go off the
right way. Better still seeking the services of a Realtor can help because you can be sure to get
expert knowledge and guidance on the subject.

Role of The Real Estate Industry

The economic significance of real estate lies in the fact that it is highly decentralized in nature
and is closely related to other industrial sectors. The force or feebleness of economic
developments in real estate has major repercussions for the rest of the economy.

Real Estate & Gross State Product:

Real estate is a major contributor to the Gross State Product (GSP) in terms of indirect business
taxes, income from property and payments received by industry workforce.Both the local and
state authorities levy taxes on commercial and residential property, which help fund additional

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services. Raising property values is necessary as it helps municipalities to offer a particular
standard of services while maintaining a set tax rate. Prohibitive tax rates are likely to holdup
economic growth; hence, the means to enlarge the tax base through new construction and
appreciation is crucial to running a healthy government.

The state requires payment of transfer tax on a one-time basis when property is transferred. The
revenue generated from the transfer tax on the brokered sale of homes has contributed
significantly to the state treasury.Thus, the real estate industry plays a key role in the economic
might of a state.

Real Estate and Property Tax

Property tax has to be paid yearly to the local and state authorities irrespective of whether a
property is transferred.A robust real estate market, where prices are inclined to go up, adds to
greater property values and better tax revenues. Municipalities generally count on growing home
value developments to raise the assessable property base leading to substantial revenues. This
eliminates the need to jack up transfer or property tax rates. The real estate industry brings about
stability in the economy and helps meet basic human requirements.

Employment opportunities

The spurt in real estate creates considerable job opportunities, particularly in the construction
industry such as real estate builders and agents, retailers and manufacturers of durable goods.
Dealing in real estate also entails intricate monetary transactions that utilize the services of
people from the financial sector and the real estate brokerage business.Thus, real estate is a
major employer and accounts for billions in national income.

Rising income levels

Real estate has positively impacted the income base. According to reports, every $1,000 profit
received from the sale of a house boosts consumer spending by about $150.The spurt in real
estate has led to rising income levels of professionals in the real estate business and the housing
services industry as well as swelled the rental income of landlords.

Growing middle class

Many households have taken advantage of low mortgage rates and tax credits to purchase homes.
As a result, sales of residences have been vigorous, the number of mortgages approved has

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increased tremendously, and the number of people owning homes has climbed higher. In
addition, the low interest rates and rising income levels have enlarged the middle class base and
boosted the performance of the real estate industry.

Increasing urbanization

Real estate fever is gripping every state leading to increasing urbanization as witnessed by
increased demand for and development of residential property, burgeoning malls and shopping
plazas, mushrooming demand for commercial space and Information Technology Parks.Real
estate has completely changed the face of cities.

Real Estate and other Sectors

The real estate industry is majorly associated with several other sectors of the economy. Every
time a new house is erected, it fuels demand for intermediate goods such as cement, gypsum,
bricks, wood and wood products, plumbing, and insulation.Prior to and following a real estate
transaction, owners buy products like paint, wallpaper, fittings, carpeting and upholstery,
furniture and appliances, plus services such as packers and movers, cleaning and landscaping.

The real estate explosion fans credit expansion and stress on consumer durables. People take
loans to purchase homes and then reborrow to furnish the homes. Buying homes involve huge
capital costs and a major part of the selling price is raised through finance. In fact, a
considerable amount of capital market funds is invested in housing. Payments made to these
associated industries also contribute to the economic development.

Real Estate and FDI

Real Estate attracts foreign direct investment (FDI). Several foreign companies either begin or
expand operations in the state. Many also establish research and development facilities. The flow
of foreign investment coupled with forming joint ventures with foreign companies has produced
increasing employment opportunities for highly skilled workforce and stimulated the growth of
the middle class.Undoubtedly, real estate is a vital contributor to economic growth and stability.

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 INTERNATIONAL REAL ESTATE

Increasing advances in technology has shrunk barriers and turned the world into a global village.
Markets have diversified and this opens new avenues for investment. It is a known fact that real
estate is an important component of an investment portfolio. Real estate no matter where it is
located remains one of the preferred investment options. Real estate has actual intrinsic value, its
price may fluctuate but its core value remains the same.

Though investing in international real estate is not a new phenomena, international real estate
has gained momentum in the last decade. Spiraling cost of living, unheard of real estate prices,
federal taxes and an increase in the crime rate and slipping value of the dollar is reason enough to
relocate. International real estate has been observed that the baby boomers shift overseas as
retirement funds have more value and for a change in lifestyle.

Investments in international real estate can appreciate more dynamically than the U.S real estate
market. With deteriorating social conditions in the country an offshore property can provide a
safe haven or simply serve as a vacation home. Alternatively it can be the home you always
desired and allow you to begin a fulfilling lifestyle. Offshore resorts, beach houses island
properties, ranch properties are in demand. On one hand it fulfills your desire to own a beach
property or a ranch, and on the other it is an appreciating investment.

There are more than two dozen countries around the world that attract expatriate investors.
Buenos Aires, Budapest, Santiago, Dublin, Panama cities, Rio De Janeiro to name a few.

Some countries do not tax capital gains on real estate like Argentina, Croatia, France, New
Zealand, Spain etc.

When you invest in real estate your team of personnel must include, very importantly a lawyer
practicing in that country, fluent in the local language. Each country has its own laws and
regulations that govern a real estate transaction. It is better to have a local lawyer look after your
interests. Laws pertaining to foreign investments are usually different from local and you need to
understand all legal ramifications before you invest.

An accountant and banker to handle your financial affairs and tax options. A property manager to
manage the property in your absence.

Let us review some offshore options

The Bahamas:

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Among the beautiful islands of Bahamas, the jewel in the crown is the unspoiled island of Great
Exumas. Located 320 miles southeast of Miami, these pictures perfect islands stretch 100 miles
from Nassau. The Bahamas consist of 700 islands lying amidst 100,000sq miles of crystal clear
waters. Sparkling palm fringed beaches,, friendly English speaking locals and a stable political
environment it is the perfect retreat for a second home.

Nassau, the capital of the Bahamas is a leading international offshore banking center. In the
Bahamas there is no income tax, capital gains tax, dividend tax or estate duty. The Bahamas
do not levy exchange controls on non-residents, no restrictions on the repatriation of profits and
has asset protection legislation. There is no financial penalty for investors purchasing land. You
pay what is the value of the land. The title to the purchased land is absolute and is registered at
the land registry in Nassau.

The Great Exumas supports the only marine park in the world and offers excellent facilities for
bone fishing, yachting, diving, snorkeling. Promoted by the Bahamian government, this beautiful
island is experiencing increasing land value, offering excellent investment opportunities. Great
Exumas also has an international airport.

Costa Rica:

Ocean front property in the U.S being prohibitingly expensive, Americans are turning their
attention overseas, purchasing property, which is 70% cheaper than home and with better
capital growth.

Costa Rica is 3hrs from the U.S and offers a fantastic lifestyle and excellent investment
opportunities. With a soaring economy due to foreign investment, equity on the purchased land
will also increase.

Cost of living is less, with a dollar giving more value. It is possible to live on $2000 a month.
Services come cheap too.

It is a stable and robust democracy in Latin America with a healthy economic growth rate and one
of the best social indices. The crime rate is nearly non-existent so life can be more relaxed and
easy. In Costa Rica you enjoy the same rights as residents. As tax and red tape are kept to a
minimum, you enjoy significant tax advantages.

The locals are friendly and speak English.

Immigrant Buyers:

Another aspect of international real estate is Permanent resident aliens purchasing or leasing

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property in their host countries. Though the complexities of a real estate transaction are
compounded when business is conducted across borders, real estate agents realize the potential of
the global economy and business represented by immigrants to the U.S.

The National Association of Realtors in association with its international real estate affiliates
recognizes the potential of this market and actively supports it. The NAR’s Research Division has
conducted a survey that sheds light on this aspect of real estate.

International real estate transactions usually involve permanent resident aliens and this business is
on the rise. Market channels for international real estate are mostly referrals. Permanent
resident aliens are expanding businesses across borders and hence require property mostly for
office space. Foreign investors and Private companies are active in international real estate.

As markets expand and open up the demand for real estate increases and this increases
investments. Real estate, located anywhere is an excellent option but tread carefully,navigating
laws and regulations sensibly.

Real Estate Stock Market

If you are thinking of good investment areas the first thing that would come to your mind is real
estate investment or investing in the stock market. However, both are two different ball games
and so how to you know why one is best? You need to examine the pros and cons and the general
environment surrounding each of these investment form before you decide which is more suitable
for you as an investment.

Real Estate Investment :

Real estate gives you many benefits. In the years to come, your real estate will rise in value. You
can use the built up equity for a home equity loan. Home equity loans can serve several
financing needs such as medical expenses, home improvement expenses, educational expenses
and so on. You can also sell off the home, making a high profit. You can rent out the home in a
real estate and receive a passive rental income which can be of great help to your finances.

You also have certain tax benefits and deductions on real estate transactions. This is some quite
welcoming as most of us want to free ourselves in some way or another from tax burdens.
Depreciation deducted over a over 27.5 years reduces a lot of tax and if you wish to sell off one
property and use the proceeds to buy another, you can use a 1031 properties exchanges and free
yourself from paying taxes on the transaction.

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Stock market investment :

The stock market otherwise known as Wall Street investments is something quite attractive.
People take up to such investments because of the quick appreciation in the value of investments
and the dividends that it pays off. However, it is a pretty volatile market; in the sense the stocks
you invest in today have a chance of going down tomorrow and then going up again. These are
aspect of the trade that an investor must be ready to digest before making investment.

Income Stocks - Income Stocks form of stock investment pays dividends and you can see your
capital investment appreciate in the years to come. Companies offering income stocks are pretty
stable ones. However, you need to be aware that the dividends paid out can be different each year
- which means it can be high or low and dividends will be defiantly taxed.

Growth Stocks - Growth Stocks stocks do not pay much dividend because these are issued by
companies who have just started out. They will be pooling their profits back into their business
for further expansions. However, in the long run the investor gains as the return will be good once
the company is up and going.

Value stock - Value stock form of stock, you will be spending a smaller amount towards
investment. It is based on the company's assets and so the company's growth is not going to
affect it. As the company stabilizes and grows, this stock in turn rises in value.

Speculative stocks - Speculative stocks is a bit of risky business because your investments can
go up and bring you good profits, or it can go bad and as the name suggests everything is up for
speculation in such stock investments. The stock in which you invest will be companies that
have just started out or even unknown companies.

Preferred Stock - Preferred Stock is a particular stock type that is issued by companies and those
who buy them have the advantage of getting preferences in dividend payments and company's
earnings. The dividend payment here is fixed.

Summary :

Thus, is stock investment you have lots of options, unlike in a real estate investment, wherein
what you invest in is just plain property be it commercial or residential, a town house or a condo.
The returns you see from your investment into real estate are not like the dividends and the profits
you see on sale of good stock. You can quickly transfer stock and buy it in small or large lots
depending on what you like. In real estate your real estate transaction closing costs and other
costs are expensive and transfer of property during a sale is not so easy. However, one aspect to
the real estate market is that buying real estate has a history of stability and security around it.
You can wait for a period of five to fifteen years and sell off the property for a sizable profit. If
you know the market well you can sell of the property in a two or three years time and make good
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