NAR-India 5th Annual Convention on 6th & 7th July @ Taj Palace Hotel, New Delhi Hurry Up & Register !!!

Why StockBrokers are aspiring to become Realtors

In the previous article we compared the product for which we provide services. In this article we will be comparing the role of a stockbroker v/s the role of a real estate broker.

Stock Broking	Real Estate Broking
No local knowledge necessary	Local knowledge very much important
Exchange is your network	You require the network to be built
Low commission per transaction	High commission per deal

As a stockbroker one needs to be aware of national and global trends, one has a standard place which functions a common network for all brokers but on the other hand commissions per deal are very low. Thus though the broker enjoys the benefits of an organised network his per deal earnings are very low.

As a real estate broker your local knowledge plays a very important role as it differentiates you from other brokers, you build your own network and there is no limit to the network you can build as you can tap into networks across the world. The most crucial thing for a stockbroker is the earning per deal. His commissions are monetarily higher per deal.

Both are brokers and both have their own points of differentiation. What can be a boon in your area may also turn out to be a bane as it might limit you. It is a decision that you make whether you want to work for an organized sector which gives negligible return per deal or you want to work for a growing sector where the returns per deal are soaring.

RE/MAX India Affiliates at the 4th RE/MAX Realty Rendezvous in Goa

RE/MAX India takes pride in informing that the 4th RE/MAX Realty Rendezvous, 2013 was organized successfully in GOA! Three days of pure excitement during the Event was summed up in a glittering awards night ceremony in Majorda Beach Resort, Goa. Many high-profile Real Estate professionals graced the occasion and the event was well received by the industry and public alike. The gathering of RE/MAX Regional Owners, Brokers Owners, Broker Associates, International Consultants & Professionals made the city, GOA, more beautiful.

Last 2 days to register for biggest Real Estate Event in GOA on 26th, 27th and 28th April, 2013

Hurry Up and get yourself registered for the 4th RE/MAX Realty Rendezvous in GOA on 26th, 27th and 28th April. Last 2 days to register. Call manpreet on 9654965003

Hurry Up ! Register for the 4th RE/MAX Realty Rendezvous @ GOA on 26th, 27th, and 28th April 2013

Only 3 days left to Register for RE/MAX Realty Rendezvous 4 @ GOA. Hurry UP and be the part of one of the biggest Real Estate Event in India. 26th, 27th and 28th April, 2013. Call 9654965003

Why Stockbrokers are aspiring to become Realtors - 2

In continuation with our previous post let us look at a comparison of equity and real estate as an asset class so that we can evaluate the products for which we offer services.

Equity	Real Estate
Highly volatile	Stable
Liquid	Not easily liquid able
Coupled with foreign markets	Relatively decoupled.
Market prices determined by handful of FIs	Market prices determined by local economies and domestic conditions

As an investment equity is highly volatile with daily fluctuations in price whereas Real Estate has a stable value which typically appreciates. It is not that sensitive to external forces.

Equity provides a liquid investment whereas real estate also is more difficult to liquidate on demand.

Equity is coupled with foreign markets and its movements are highly affected by the global scenario, and as we have currently seen it is also dependent to a large extent on foreign investors whereas real estate prices are relatively decoupled and governed more by domestic and local conditions, which was also seen in times of a global slowdown.

On comparing the merits and demerits of both the classes we realize that for a solid investment real estate is the more preferred option whereas for speculative and quick cash purpose equity is preferred. In the domestic scenario where people are risk averse real estate is becoming a more preferred option.

Stock Brokers aspiring to become Realtors

 With the current volatility in the economy on a global and domestic level we have seen the stock markets get hit. Stockbrokers have now started to look for alternatives to income generation. We shall have a series of articles on why stockbrokers are aspiring to become realtors or will aspire to.

The broker markets have seen a fall in average daily volumes to a nine month low in the wake of new tax rules for overseas investors. Prior to this the euro zone crisis had created havoc in the markets.

In an already difficult market another problem stockbroker’s face is today there is no differentiation between brokers and no unique value addition as organised broking has created a level field. Internet broking has further eaten into the independent broker’s market share.

On the other hand the real estate sector is still booming with potential. There is still scope for value addition unique to a broker. The competition by major organised players is barely a dent in the market. A stockbroker has already a network of clients who trust him which he can leverage. On comparing a person’s wealth invested in stocks and that invested in real estate we can see where the real bounty lies.

Stockbroking has reached a maturation point whereas real estate brokerage is entering the growth stage in terms of developing as an industry.

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