Have enough savings? Go for a home abroad
Indians eye foreign real estate
Are you looking to make your next investment in property market? If yes, then buying a property may be the right option for you. In recent times, there has been an increase in Indian citizens to buy a house in foreign soils. Be it for the perpetual problem of project delays in India or the over priced real estate market in metros like Mumbai and Delhi, buying foreign properties have become an ideal option for high net worth individuals (HNI) of India.
Frustrated by the overpriced property markets in India, which is further crippled by shoddy quality and delays in delivery, a lot of Indian nationals are looking to buy everything from a studio apartment or weekend home to villas or chalets outside India.
Rise in the income level along with increased interest in properties abroad are the catalysts working behind Indians looking for a second home abroad. The maximum amount of investment that an Indian can make in a year is $2,00,000.
Why buy a house overseas?
Buying a house abroad is no longer an unusual thing for Indians. Although it had been the prerogative of non resident Indians (NRIs), more and more HNIs are looking to own a house in greener pastures. From an investor’s point of view, you can own a dream villa or cottage in Italy or France with a beautiful garden at a cost much lower than buying an apartment in Delhi or Mumbai or even a holiday home in Goa.
The economic trouble in Europe and USA have brought down the property prices over the last few years. Especially, in US, banks have been offering a number of foreclosed, non performing assets at a lower rate to liquidate them. It gives the wealthy Indians a good chance to get a foreign address at a cheaper rate.
Due to the interest among Indians in buying property abroad, property consultants like Knight Frank and Jones Lang LaSalle have offered their expertise to tap the potential of this section of buyers. Apart from the fact that recent economic crisis in the west has made properties cheaper and has made buying properties more viable for Indians, a number of potential buyers also go for properties abroad as the locations offer sound investment opportunities.
Realty destinations abroad
Traditional realty destinations like London, Singapore, Dubai and New York are the most popular among Indians. However, interest is being shown in education destinations like Sydney and Melbourne as well as in exotic resort locations in South France, Malaysia, Mauritius, Thailand, Switzerland, etc.
Most of the potential buyers are well travelled and do a well furnished research before going for an investment in foreign property. Asian destinations like Thailand, Singapore and Dubai are preferred due to their accessibility. Recent cash crisis in Greece, Turkey, Spain and Italy means that properties can be possessed at a much lower rate now.
However, owning a property abroad may not always be a smooth ride as lot of foreign locations do not allow non residents to own land but only to lease them. Thailand and Singapore are examples.
Save to own a home on foreign shores
Since banks in India do not offer loans to buy property abroad and you will not get a loan from say an UK bank unless you are a citizen of the nation to buy property there, you have to buy the property through personal savings. It is advisable to go for joint investment as the personal limit to invest in foreign properties is only $2,00,000 per year, which will keep many dream destinations out of reach.
