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Experts,
I thought this is an interesting thought.
Say for an NRI who wants to work in US for next 20 years is it wise to move at least one property worth around 1.5crores to US and invest in commercial property.
Benefits:
1)Returns are more in US say for 15 years investment timeframe considering very low interest rates.
2)Diminishing or less returns if the indian property is in almost developed areas(like places where apts are going for 10,000 per square feet)
3) Positive cash flow that will help better lifestyle.
case in Point:
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Assume an apartment(2 year old) worth 1.25 crores today in an area with 10,000 sq feet.
Returns expected in 10-15 years is say it might sell for 20,000 then values goes to 2.5crores
But in the new scenario the person moves money to US say he has around 220 K and he puts 30K more and buys a commercial property for $600,000K his load for 350K(15 years) will be around 2k and tax and maintenanace around 1K even if the rent is around 5K then 2k cash flow every month. so if 15 years he will get 375K + his property worth 250K + 350K + even assuming 1% appreciation avg he can make another say $100k
In India 1.25cr becomes 2.5crores
In US 250K becomes 650K + 360k( based on cash flow of 2K per month for 15 years)
Any thoughts guys. Also am I missing anything.
People like Rajagopal who have lived in US can add some more valid points.
I thought this is an interesting thought.
Say for an NRI who wants to work in US for next 20 years is it wise to move at least one property worth around 1.5crores to US and invest in commercial property.
Benefits:
1)Returns are more in US say for 15 years investment timeframe considering very low interest rates.
2)Diminishing or less returns if the indian property is in almost developed areas(like places where apts are going for 10,000 per square feet)
3) Positive cash flow that will help better lifestyle.
case in Point:
----------------
Assume an apartment(2 year old) worth 1.25 crores today in an area with 10,000 sq feet.
Returns expected in 10-15 years is say it might sell for 20,000 then values goes to 2.5crores
But in the new scenario the person moves money to US say he has around 220 K and he puts 30K more and buys a commercial property for $600,000K his load for 350K(15 years) will be around 2k and tax and maintenanace around 1K even if the rent is around 5K then 2k cash flow every month. so if 15 years he will get 375K + his property worth 250K + 350K + even assuming 1% appreciation avg he can make another say $100k
In India 1.25cr becomes 2.5crores
In US 250K becomes 650K + 360k( based on cash flow of 2K per month for 15 years)
Any thoughts guys. Also am I missing anything.
People like Rajagopal who have lived in US can add some more valid points.
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