India’s rich invest in foreign properties
The changing lifestyle and the increased amount of disposable income are giving an opportunity for the Indians to invest in foreign countries. Now the ultra rich Indian investments have increased in various countries for luxurious villas and apartments.
Indian investors are looking to invest in high-end properties in countries like Dubai, Canada, UK, Switzerland and others. However, due to the fluctuations in the European and US economy people are moving to places like French Riviera and Monte Carlo for luxury projects. The ultra rich who are opting to invest in foreign properties are quite niche and most of them were not aware about the possibilities of investing in foreign countries and the returns. Fortunately, the investments by ultra rich in such countries have evoked others to invest too.
Property prices are one of the key aspects attracts Indians to invest in foreign countries. Properties in countries like Spain and others are far more affordable than in Delhi and Mumbai. In Europe and US, due to the downfall, property prices have decreased and this has attracted more Indian investors. Investors are finding luxury projects cheaper and worthier in foreign countries when compared to India.
Various studies have shown that Indian investments in foreign countries have doubled in the past few months and the customers are likely the ultra rich from Mumbai, Andhra Pradesh, Karnataka, Maharashtra, Punjab, etc.
Is real estate investment abroad vulnerable to scams?
Indians who are investing abroad need to be careful about the land scams before making investments. Research shows that a lot of investments made by the Indian investors in the UK and US comprise of the land which falls under the no development zones.
There arises the confusion of the remittances wherein the Reserve Bank of India (RBI) does not allow the transactions which fall under the remittance for margins/margin calls to overseas exchanges or overseas counter-parties. Also the RBI’s scheme does not allow the ultra rich Indians abroad to purchase lotteries, sweepstakes or tickets which are present in international magazines. This scheme also does not allow a person to make remittances to places like Bhutan, Nepal, Mauritius or Pakistan.
Property investment destinations abroad:
If you are planning to buy a home abroad, ensure that you choose a property in idyllic countryside. Due to the global recession, many markets are offering properties at attractive prices with great incentives and hence creating an opportunity for Indians to invest abroad.
Countries such as Singapore, Malaysia, New York, Dubai and various cities in the UK have been opted by most of the Indian investors. Most of the property buying queries are from ultra rich Indians from cities such as Punjab, Delhi, Mumbai, Karnataka, Kerala and Chennai.
Indians are opting for locations like Ontario, Winnipeg in Canada, Victoria in Australia, California, Arizona, and Florida in USA, homes in Central London and Cape Town in South Africa for investments.
Talking about the cost of the properties abroad, a 3 BHK/4 BHK will cost about $100k-250k in countryside areas of California and Arizona in the USA. A two-bedroom independent house in areas like Victoria in Australia will cost about 200,000 Australian dollars and a 3 BHK independent house in Cape town suburbs in South Africa can cost 500,000 Rands.
The RBIs scheme also plays a vital role in the investment process abroad. The maximum an Indian can invest abroad is $200,000 in a year. Due to this, the central city locations of a country are out of reach for a maximum number of Indian investors and this eventually makes it possible to invest in peripheral areas which are quite cheap.
