Fixed deposit or real estate:NRI investors in quandary
Although the depreciating rupee has wiped off the smile from people’s face, one group of people still seem to make the most out of the status quo-Non-Resident Indians. The two likely routes(tried and tested) for NRIs, for earning more value on individual investments are fixed deposit and real estate, however, the latter seems to be creating waves across the nation.
According to market experts, capital appreciation on real estate in the nation has been a joy ride and is much more, in comparison to high-yielding deposits for the NRIs. In accordance to the data of last two decades, because of depreciating rupee value, NRIs have missed out the anticipated capital returns when they locked in their foreign exchange into high yielding deposits.
Stocks
Another calculated approach for NRI investors to make a score and reap the benefits of long-term investments are mutual funds and stocks. According to investment advisors, dollar-denominated fixed income tools are the preferred investment pattern for the NRIs.
Stock market is the ideal platform for NRI Investors to make it big in a short-span of time. However, there are other concerns NRI’s need to make a note of before introducing their foreign exchange in the money market. Low growth rate and upcoming general elections are the two primary aspects NRIs should be concerned with before investing money in stock market.
Bottom line
Tagged as one of the safest routes for optimal benefits, NRIs consider investing money in Indian real estate is out of harm’s way, since the risk involved is less and return expected is higher. As long as NRI investors uphold a broad investment horizon and select the properties after careful analysis( such as ensuring all electricity and water bills are settled,checking the title of the property and house ownership), the capital appreciation on real estate will translate into multi-fold, which is likely to outshine other asset classes.
The current fall in rupee has been a blessing in disguise for NRI investors to buy high-net worth properties without facing a financial crunch. On the back of a weak rupee, NRIs have taken the real estate sector by a storm and has attributed to be one of the top five investor communities in the realty sector.Of lately, NRIs, with entrepreneurial or professional intentions, have been making their presence felt in the residential real estate market of big cities.
NRIs, with professional ambitions, are buying commercial properties in the country, since it yields 7-10% more that residential properties. A pre-lease property, which offers fixed flow of income for a period of 3-5 years, has recently caught the attention of a number of potential NRIs investing in Indian real estate.
