Property in India is really not worth it today - Indian Real Estate Forum

Munish Malhautra · 05-07-12

Hi All,
I was in USA for about 7 weeks and just came in last week. Lived in East coast and then in west coast.

1. Price in east coast area ie Virginia, Maryland and some parts of washington were real worth it today if someone is willing to INVEST 50Lacs in India, he/she must look at the above options. You get a good condo/ aptt for USD 80-100K which will have excellent facilities like central HVAC, club services, Hot and Cold water, great maintainence, great carpeted flooring and interiors. To top it you can expect a rental return of ~USD 1000 per month, considering if it is a ~ 1000sqft flat. you are getting a return of 12-14% per month plus the biggest factor is SECURE DEALING on paper with white money.

2. Now if someone wants to buy a bigger property that is termed as a town house, i was amazed to town houses price at USD 350-500K viz 1.5cr- to 2.5cr, what you get is atleast 500 sqmtr of plot with excellent construction on basement, GF, FF, with total construction of atleast 3000-4000 sqft. This means that you are only occupying 30% space on plot an you have a backyard of atleast 3500sqft or 400sqyard. Interiors and services are exceptional, rental for this property is atleast USD 3000-4000pm. Meaning a 12% return. In India you would spend this money on interiors of a just a 400sqyard house.

now compare what you get in India for 1.5-2.5cr, max a bare plot of 150-200sqrmtr

, the rental you get here is peanuts, rental return is not more than 2%.

On the west coast especially silicon valley, keeping all the above paramaters similar, prices are 3x higher and rental yield is also around 8% viz still good.

All in all it makes sense to look at investing money in US(if you have some relative it is even better), as the govt now allows people to Indians to invest there.

I understand appreciation is better in India but that is due to black money.

yooddha · 05-07-12

Quote:

Originally Posted by Munish Malhautra

Hi All,
I was in USA for about 7 weeks and just came in last week. Lived in East coast and then in west coast.

1. Price in east coast area ie Virginia, Maryland and some parts of washington were real worth it today if someone is willing to INVEST 50Lacs in India, he/she must look at the above options. You get a good condo/ aptt for USD 80-100K which will have excellent facilities like central HVAC, club services, Hot and Cold water, great maintainence, great carpeted flooring and interiors. To top it you can expect a rental return of ~USD 1000 per month, considering if it is a ~ 1000sqft flat. you are getting a return of 12-14% per month plus the biggest factor is SECURE DEALING on paper with white money.

2. Now if someone wants to buy a bigger property that is termed as a town house, i was amazed to town houses price at USD 350-500K viz 1.5cr- to 2.5cr, what you get is atleast 500 sqmtr of plot with excellent construction on basement, GF, FF, with total construction of atleast 3000-4000 sqft. This means that you are only occupying 30% space on plot an you have a backyard of atleast 3500sqft or 400sqyard. Interiors and services are exceptional, rental for this property is atleast USD 3000-4000pm. Meaning a 12% return. In India you would spend this money on interiors of a just a 400sqyard house.

now compare what you get in India for 1.5-2.5cr, max a bare plot of 150-200sqrmtr

, the rental you get here is peanuts, rental return is not more than 2%.

On the west coast especially silicon valley, keeping all the above paramaters similar, prices are 3x higher and rental yield is also around 8% viz still good.

All in all it makes sense to look at investing money in US(if you have some relative it is even better), as the govt now allows people to Indians to invest there.

I understand appreciation is better in India but that is due to black money.

Which city has town home rentals for $3-4K in US?

You can check the rentals on craigslist.org for almost all US cities and get back to me. Rental for 1500sqft town home will not be more than $1500-1800/mo. You probably will have to pay $300/mo HOA for both your townhome and condo.

But yes, I do agree with you that prices and returns are better in US than in India ATM. However, your estimate is very optimistic, while the ground reality is not so rosy.

West Coast the rental yeild is close to 5% if you are lucky. But then you have to factor maintenance, insurance and property taxes (on total property values) as well.

akash.g · 05-07-12

Dude population n size bhi toh dekho...

man4ish · 05-07-12

In KL, Property price is much lower than Delhi but infrastructure is not as good as here.

Regards

shrek2011 · 05-07-12

Only reason to go for a plot of 200 sq yd in India without any infra for 2.5 crores is that same plot will be 5 crores in 2-3 years, 10 crores in 8-10 years, and then each floor will be worth 5 crores after few years making the whole thing worth 25 crores :-)

ghajab desh hai hamaara!

Quote:

Originally Posted by Munish Malhautra

Hi All,
I was in USA for about 7 weeks and just came in last week. Lived in East coast and then in west coast.

1. Price in east coast area ie Virginia, Maryland and some parts of washington were real worth it today if someone is willing to INVEST 50Lacs in India, he/she must look at the above options. You get a good condo/ aptt for USD 80-100K which will have excellent facilities like central HVAC, club services, Hot and Cold water, great maintainence, great carpeted flooring and interiors. To top it you can expect a rental return of ~USD 1000 per month, considering if it is a ~ 1000sqft flat. you are getting a return of 12-14% per month plus the biggest factor is SECURE DEALING on paper with white money.

2. Now if someone wants to buy a bigger property that is termed as a town house, i was amazed to town houses price at USD 350-500K viz 1.5cr- to 2.5cr, what you get is atleast 500 sqmtr of plot with excellent construction on basement, GF, FF, with total construction of atleast 3000-4000 sqft. This means that you are only occupying 30% space on plot an you have a backyard of atleast 3500sqft or 400sqyard. Interiors and services are exceptional, rental for this property is atleast USD 3000-4000pm. Meaning a 12% return. In India you would spend this money on interiors of a just a 400sqyard house.

now compare what you get in India for 1.5-2.5cr, max a bare plot of 150-200sqrmtr

, the rental you get here is peanuts, rental return is not more than 2%.

On the west coast especially silicon valley, keeping all the above paramaters similar, prices are 3x higher and rental yield is also around 8% viz still good.

All in all it makes sense to look at investing money in US(if you have some relative it is even better), as the govt now allows people to Indians to invest there.

I understand appreciation is better in India but that is due to black money.

planner · 05-07-12

HI MM ji,
I agree with US but again we will have to thinkl NCR only=========
What to do, this the the reality=====

Naveen · 05-07-12

MM Boss, neither everyone has got a relative in US, nor a job ... so property to wahin leni hoti hai jahan aapki job aur poori life hoti hai ... else UK London is even better these days

So no point comparing US and NCR property on IREF in Noida Thread ... for a man, his property is worth where ever his life is, whether its an investment or end use !!!

alok80 · 05-07-12

Without any doubt.. I agree whatever you are saying is right..

then??? what do you suggest ?? Sari india ki property sell kar ke US nikal chale.. and ye hi business suru kar de???

Do you think that is possible.??? I Think No..

In simple words you are comparing the facilities of a developed Country with a developing & CORRUPT country. that is not at all logical...

Even in India you can get such big space and build all those facilities if you try 100km far from Delhi. but those facilities will not work since there wont be 24hrs electricity.. when you will step out of that bungalow. you will find tooti footi roads. .. will take at least 2hrs to reach Delhi after facing traffic jams and poor road conditions.

so facilities you can buy in this budget but infra is not there.

Why dont you visit Bangladesh or Afganistan next time??

Lets see what do you get?

Quote:

Originally Posted by Munish Malhautra

Hi All,
I was in USA for about 7 weeks and just came in last week. Lived in East coast and then in west coast.

1. Price in east coast area ie Virginia, Maryland and some parts of washington were real worth it today if someone is willing to INVEST 50Lacs in India, he/she must look at the above options. You get a good condo/ aptt for USD 80-100K which will have excellent facilities like central HVAC, club services, Hot and Cold water, great maintainence, great carpeted flooring and interiors. To top it you can expect a rental return of ~USD 1000 per month, considering if it is a ~ 1000sqft flat. you are getting a return of 12-14% per month plus the biggest factor is SECURE DEALING on paper with white money.

2. Now if someone wants to buy a bigger property that is termed as a town house, i was amazed to town houses price at USD 350-500K viz 1.5cr- to 2.5cr, what you get is atleast 500 sqmtr of plot with excellent construction on basement, GF, FF, with total construction of atleast 3000-4000 sqft. This means that you are only occupying 30% space on plot an you have a backyard of atleast 3500sqft or 400sqyard. Interiors and services are exceptional, rental for this property is atleast USD 3000-4000pm. Meaning a 12% return. In India you would spend this money on interiors of a just a 400sqyard house.

now compare what you get in India for 1.5-2.5cr, max a bare plot of 150-200sqrmtr

, the rental you get here is peanuts, rental return is not more than 2%.

On the west coast especially silicon valley, keeping all the above paramaters similar, prices are 3x higher and rental yield is also around 8% viz still good.

All in all it makes sense to look at investing money in US(if you have some relative it is even better), as the govt now allows people to Indians to invest there.

I understand appreciation is better in India but that is due to black money.

**fritolay_ps** · 05-07-12

In with same investement.. one can buy "whole village" in Pakistan/Dhaka... so should we go there

Krazy Yuppie · 05-07-12

Quote:

Originally Posted by shrek2011

Only reason to go for a plot of 200 sq yd in India without any infra for 2.5 crores is that same plot will be 5 crores in 2-3 years, 10 crores in 8-10 years, and then each floor will be worth 5 crores after few years making the whole thing worth 25 crores :-)

ghajab desh hai hamaara!

Yahan RE appreciation population growth ki tarah hai.
Mera Bharat Mahannnnnnnnnn

05-07-12	#1
Munish Malhautra Veteran Member Join Date: May 2010 Location: India Posts: 2,934 Likes Received: 143 Likes Given: 5 My Mood:	Property in India is really not worth it today Hi All, I was in USA for about 7 weeks and just came in last week. Lived in East coast and then in west coast. 1. Price in east coast area ie Virginia, Maryland and some parts of washington were real worth it today if someone is willing to INVEST 50Lacs in India, he/she must look at the above options. You get a good condo/ aptt for USD 80-100K which will have excellent facilities like central HVAC, club services, Hot and Cold water, great maintainence, great carpeted flooring and interiors. To top it you can expect a rental return of ~USD 1000 per month, considering if it is a ~ 1000sqft flat. you are getting a return of 12-14% per month plus the biggest factor is SECURE DEALING on paper with white money. 2. Now if someone wants to buy a bigger property that is termed as a town house, i was amazed to town houses price at USD 350-500K viz 1.5cr- to 2.5cr, what you get is atleast 500 sqmtr of plot with excellent construction on basement, GF, FF, with total construction of atleast 3000-4000 sqft. This means that you are only occupying 30% space on plot an you have a backyard of atleast 3500sqft or 400sqyard. Interiors and services are exceptional, rental for this property is atleast USD 3000-4000pm. Meaning a 12% return. In India you would spend this money on interiors of a just a 400sqyard house. now compare what you get in India for 1.5-2.5cr, max a bare plot of 150-200sqrmtr, the rental you get here is peanuts, rental return is not more than 2%. On the west coast especially silicon valley, keeping all the above paramaters similar, prices are 3x higher and rental yield is also around 8% viz still good. All in all it makes sense to look at investing money in US(if you have some relative it is even better), as the govt now allows people to Indians to invest there. I understand appreciation is better in India but that is due to black money. humble_guy, matrix_55 and shivanand like this. __________________ MM

05-07-12	#7
Naveen Senior Member Join Date: Aug 2011 Location: Noida Posts: 698 Likes Received: 145 Likes Given: 148 My Mood:	MM Boss, neither everyone has got a relative in US, nor a job ... so property to wahin leni hoti hai jahan aapki job aur poori life hoti hai ... else UK London is even better these days So no point comparing US and NCR property on IREF in Noida Thread ... for a man, his property is worth where ever his life is, whether its an investment or end use !!! Krazy Yuppie likes this. __________________ Rgds, Naveen

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05-07-12	#3
akash.g Veteran Member Join Date: Nov 2011 Location: New Delhi Posts: 2,583 Likes Received: 373 Likes Given: 578 My Mood:	Dude population n size bhi toh dekho...

05-07-12	#4
man4ish Member Join Date: Apr 2011 Posts: 252 Likes Received: 5 Likes Given: 24 My Mood:	In KL, Property price is much lower than Delhi but infrastructure is not as good as here. Regards

05-07-12	#6
planner Veteran Member Join Date: Feb 2012 Location: Middle East Posts: 1,502 Likes Received: 738 Likes Given: 739	HI MM ji, I agree with US but again we will have to thinkl NCR only========= What to do, this the the reality=====

05-07-12	#9
fritolay_ps Ex-Moderator Join Date: Mar 2010 Location: Singapore Posts: 12,482 Likes Received: 1490 Likes Given: 745 My Mood:	In with same investement.. one can buy "whole village" in Pakistan/Dhaka... so should we go there