Real Estate has other options too….
I have been hearing from friends about good real estate deals in US and UK. Not that real estate there is a good deal or a bad deal, but when you compare it to Indian prices, it surely looks attractive.
It may also be some kind of a protection for people investing only in India. You can look at condos at US $ 50,000 – at such prices the real estate agent in Mumbai and Delhi will not even look at you. Given Indian prices and terrible rental yields, it may be worthwhile to invest in US and UK.
Most of us are today sure that it is India and China are the only growth stories and all US and Europe is doomed. Please understand it takes a couple of world wars to dethrone those in power. US and Europe will not give up the domination very easily – this means the real estate investment cannot be too bad.
I am neither saying ‘buy’ or ‘sell’ – just read this article by Deepa Venkatraghvan – in Economic Times – and take your own decision..Please remember US is an extremely ‘agent’ oriented country – so while taking a buying decision remember Estate management fee, taxes, currency risk, brokerage and commissions while taking a decision…and as usual have at least ONE BUSINESS CYCLE – 7 years view…shorter views could kill you or maim you at the least.
Statspotting
The simplest way to solve US housing price crisis is to offer green cards to foreigners who buy a house for more than 150,000 USD. Do this and watch the fun.
In no time. housing prices would be back to where they were in 2007, if not more.
Forget Indians – look at the chinese !
pravin
@statspotting. you are assuming that many foreigners are dying to buy houses in the US. with the economy in the doldrums,there is a reverse migration happening with many americans actually leaving for singapore etc.
the simpler medicine is to let the housing prices fall.but ofcourse,the keynesian and monetarist modellers dont like that.
subra
Pravin
do remember owning a property in the US or Europe is an aim of most people in the world! You may be different, but the power and attraction of ‘America’ is really strong! There is a scheme where you can get a ‘Non Immigrant Status’ – you may have to invest Rs. 500,000 US$ – and not just $ 150,000.
Akash
On “it takes a couple of world wars to dethrone those in power.” :
the earlier WW scenarios were where the countries getting stronger were trying to have supremacy on others. also, their grown was “on their own”.
but in the current scenario, US and European economies are “imploding” – they have bad fundamentals, and as a result, their own taxpayer shall stand against US fighting a war, isnt it ?
only one new superpower : china can shoot for WW for supremacy, but again, it knows that its power is dependent on rest of the world’s consumerism.
in a nutshell, i am unable to see how it would take a WW to change powers…
Landsmith
Thanks for posting this nice blog .you are provide very good information .Good real estate deals in US and UK. Not that real estate there is a good deal or a bad deal, but when you compare it to Indian prices, it surely looks attractive.Keep it up