Considering purchasing a home as an investment? Here are some of the dangers you should be aware of.

 

                    One of the biggest constants we've noticed in most customer portfolios during our journey as financial planners is that they are either already real estate heavy, or their high-priority goals include buying additional homes as an investment.

This should come as no surprise: as recently as 2017, real estate accounted for an astounding 84 percent of all household investment assets in India (RBI Household Finance Committee Report, 2017). In the life of the average Indian investor, nice-looking gated communities and plushly-designed apartments play the role of Bollywood seductresses and temptresses. You bought a house a few years ago and have just begun to pay off the principal on the loan when the latest upgrade on the market catches your eye, complete with that extra half bedroom you forgot you needed and the tennis court your current apartment complex desperately needs but lacks.

This is becoming more visible as life returns to pre-COVID normalcy and the economy picks up speed. A conversation I had with a group of friends last week was eye-opening; one of them, who works in construction, confirmed that just in our small Mumbai suburb, there are currently 100+ redevelopment projects in the works, with a similar number expected to be added in the next 3-4 months. There are clearly buyers in the market driving demand for this supply, and demand is only increasing. In other words, real estate is currently looking good as an investment opportunity.

Given that many of you reading this are likely to be among those thinking about buying a house as an investment right now, it may be prudent to consider some of the investment risks associated with this asset class. While this is not an exhaustive list, each risk has the potential to significantly harm your financial independence.

India intends to increase its exports to sanctioned Russia by $2 billion.

    

     

India is looking to export products supplied by countries that have halted shipments as a result of sanctions imposed by the United States and its allies.

            According to people familiar with the situation, India plans to increase shipments to Russia by $2 billion as the two countries work out a payment system in local currencies to continue bilateral trade in the face of sweeping international sanctions imposed on Russia for invading Ukraine. 

To that end, Prime Minister Narendra Modi's administration is in talks with Moscow to liberalize market access for a number of Indian-made products, according to people who asked not to be identified because the discussions are private. This comes as the two governments work on a proposal to settle trade in rupees and rubles, as well as ways to balance trade given India's net importer of Russian goods.

According to sources, India is looking to export products supplied by countries that have halted shipments as a result of sanctions imposed by the United States and its allies.

Pharmaceuticals, plastics, organic and inorganic chemicals, home furnishings, rice, beverages such as tea and coffee, milk products, and bovine products are all on the list.

India has come under fire for increasing oil imports to take advantage of a drop in prices after the United States, Europe, Australia, and Japan imposed economic sanctions on Russia in response to its war in Ukraine. President Joe Biden met with Prime Minister Narendra Modi on Monday and told him that the United States is ready to assist India in diversifying its energy imports, reducing its reliance on Russia.

A spokesperson for the Commerce Ministry did not immediately respond to an email seeking comment.

According to a trade department analysis, India can easily increase exports to Russia in the top 20 items it needs to import. Other items India wants to send to Russia include marine products, textiles and apparel, footwear, machinery, and electronics.

Currently, India's exports to Russia total only $3 billion, compared to over $68 billion in shipments to the United States. It could be higher but for high logistics costs, sanitary regulations, a language barrier, and lower allocations in government procurement done by Russian state-owned enterprises. Total bilateral trade between the two countries reached $11.8 billion in the first 11 months of 2021, up from $8.1 billion in the previous full year.

India has historically attempted to maintain a neutral stance on major power tensions, even as it has joined groups such as the Quad security alliance with Australia, Japan, and the United States.

Petrol and Diesel are nearly a rupee more expensive, and this is the fourteenth hike in sixteen days.

 

 

    Today's Fuel Prices: Petrol in Delhi will cost 105.41 per litre, up from 104.61 yesterday, while diesel will cost 96.677 per litre, up from 95.87 yesterday.

According to a price announcement from state fuel retailers, petrol in Delhi will now cost 105.41 per litre, up from 104.61 yesterday, and diesel rates will rise from 95.87 per litre to 96.677. Petrol will be sold for 120.51 per litre in Mumbai, while diesel will be sold for 104.77 per litre. 

Hardeep Singh Puri, the Union Minister for Petroleum and Natural Gas, justified the fuel price hike on Tuesday, comparing it to that of other countries and claiming that India's increase was "only 5%."

"The increase in fuel prices in India is one-tenth of the price change in other countries. When comparing gasoline (petrol) prices between April 2021 and March 2022, the prices in the United States of America (USA) increased by 51%, Canada by 52%, Germany by 55%, the United Kingdom (UK) by 55%, France by 50%, Spain by 58%, but India only by 5% "Mr Puri in the Lok Sabha. 

As the country faces its greatest economic crisis in decades, Sri Lanka's cabinet resigns en masse.

 

According to political observers, cabinet ministers faced significant public criticism over the government's alleged'mishandling' of the economic crisis, which was sparked by a foreign exchange reserve deficit.

                         Late Sunday night, Sri Lanka's Cabinet of Ministers resigned with immediate effect, as the country faces its greatest economic crisis in history. Education Minister and House Leader Dinesh Gunawardena told reporters that Cabinet Ministers have handed in their resignations to Prime Minister Mahinda Rajapaksa.

Political experts in the city, however, said the ministers were under significant public criticism over the government's alleged "mishandling" of the economic crisis, which was precipitated by a foreign exchange reserve shortage.

Despite the implementation of a curfew that is set to terminate on Monday AM, widespread public protests were witnessed throughout the evening.

President Gotabaya Rajapaksa's resignation has been demanded by an irate people. 

On March 31, 2022, an enraged mob approached Rajapaksa's private mansion, prompting the government to proclaim a state of emergency. 

On April 3, 2022, a planned social media-triggered major demonstration was planned. The government, on the other hand, retaliated by imposing a 36-hour curfew.

Rumours have been circulating since the evening that Rajapaksa may choose an interim administration to deal with the economic crisis. 

Throughout the island, disturbing scenes were witnessed.

During a protest in the central province, Sri Lankan police used tear gas and water cannons to disperse hundreds of university students. Despite the curfew, the protest was held. The government's inadequate management of the economic crisis, which has left people without electricity for lengthy periods of time and essentials in short supply, has enraged the populace, who have planned nationwide protests for April 3, 2022.

To avoid planned demonstrations calling for President Rajapaksa's removal over growing living costs and a foreign exchange crisis, the government ordered internet service providers to ban social media access. In the second half of April 2022, the social media restrictions were relaxed.

Legislators from Sri Lanka's main opposition party, Samagi Jana Balawegaya, defied curfew orders to organise an anti-government protest in Colombo protesting President Rajapaksa's decision to establish a state of emergency and other restrictions.

The opposition MPs marched towards Independence Square in Colombo, singing slogans and holding signs that read "Stop Suppression" and "Gota Go Home." 

Barricades were placed up in front of the Independence Square, which was built to honour Sri Lanka's 1948 independence. 

Hundreds of students from the University of Peradeniya flocked to the streets in Central Province to protest the country's current condition of affairs. Police, on the other hand, erected barricades near the campus.

University students, backed by their teachers, marched to Galaha Junction, where tensions erupted when they attempted to dismantle police barricades, according to the News 1st station.

According to the report, police used water cannons to disperse the gathering before firing tear gas, adding that the atmosphere in the region is tense.

Sri Lanka is in the midst of its worst economic crisis in its history. The population has been suffering for weeks due to long queues for fuel, cooking gas, staples in short supply, and long hours of power outages.