Some great housing stocks to look at
Housing and housing finance
have been in the news lately. With prices
rising around 50 per cent across the country
in the past year, home buyers are confused
on the future direction of prices, and more
importantly, how they will finance the purchase.
The Reserve
Bank of India is worried about unabated
growth of housing loans, and has also warned
home loan players, whose fortunes are tied
to what home buyers do.
Despite property prices having
zoomed over the past three years, the housing
finance industry, which comprise of specialised
institutions like HDFC, Dewan Housing, LIC
Housing and even the banks, has also bloomed.
Or is it the other way round?
In any case, all the four
parties involved--individuals, home loan lenders,
real estate developers and investors have
gained, and this is expected to continue though
at a moderate rate going forward.
Home finance companies say
that the demand for housing loans continue
to be strong at 25-30 per cent. But the stock
prices seem to have factored in all the good
news, especially for larger players like HDFC
and ICICI Bank.
Source: Rediff Money
