I am on H1b currently and planning on investing the cash I have on hand in a property in India. My reasons: 1. H1B is temp work visa and I have to go back once the validity is over. I would need a place to live in that case. 2. I have already invested some money in both US and Indian stock market. So I want to diversify. I don't want to live just anywhere in India and I want to live in my home city and in a good neighborhood. Considering these, a 24 yr old condo/apt is costing me around $200k - $250k. And that is the cash I have at hand for investing in real estate. Any thoughts/comments? Has anyone already done something like this and if yes, could you please share your experience. Thanks in advance!
200-250K is way too much for India. You can never recoup in rental income. If you plan on living there then it may be okay but consider investing the money and using the investment income to pay rent.
What kind of investment? I want to diversify and real estate and gold are the only things that I have not invested in yet. Not considering crypto as of now.
Not sure that Gold is an investment. Real estate is but try to buy it cheaper especially since the currency also depreciates. If the property goes up 10% but currency depreciates 10% you are flat
Just invest in a REIT. Individual real estate holdings especially those on the other side of the world are too illiquid.
If it’s a place you would actually consider living in, then go for it. If not, then you should maybe just buy something you will rent out indefinitely, and treat it as a rental property. India has fairly low real estate cap rates. A $200K-$250K property in India will yield far lower rent than a similarly priced property in the US, or a place like Dubai. So if you want a pure investment, buy in the US and have a property manager rent it out (they’ll take a cut of around 10%).
Which city in India? Mumbai and Delhi may cost that much for condo but you should get it a lot cheaper in South Indian tech cities
Bullshit... south India is far more expensive than say delhi
Don't invest in real estate in India right now. Demonetization and gst have slowed down the market considerably. Demand has gone down but builders have not marked down prices yet since they bought the land and built it before demonetization with a high black component. High probability of that asset not appreciating at all over next few years till things get streamlined.
That is very true but when do you think is the right time to buy? When the price is stagnant or going up? I am afraid I wouldn't be able to estimate when it will start to improve again. I am fine with it being constant as long as it doesn't go down. Also my parents live in a rented house, so buy moving into this house, they can save up on rent.
I'm doing the same in my home country (Poland). You need to report in US for tax purposes but don't end up paying much due to depreciation. better to have a local agency that manages the lease past a certain amount of apartments, so that you don't bother your family to much...
So what kind of taxes should I pay here? I read that my country already taxes me on the property. I wouldn't be renting the apartment out so there will be no rental income for me. And this is my very first home. I don't own any other home/house anywhere else in the world.
See if the US would allow you to deduct any mortgage interest you pay in acquiring that condo. It would be a nice tax break.