indian property investment

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briancbyrne

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Hi,

Has anyone any thoughts / experiences on investment in the growing Indian property market - have read various "experts" articles and it does seem to warrant further investigation.
Have read articles where expectations exceed 600% return on property investments of 2 bed apartments and larger over 10 years - this seems excessive but even so if there was any truth to these claims......

It would seem that it might be a safer option than the ballooning Chinese market, and given the level of third level education in the country (particularly in the science & technology sector) it would stand to reason that the current lack of good quality homes for these students who in a nr of years you would reasonably expect to trade up would seem like a good opportunity....any thoughts?
 
Previous thread here.

FWIW, The Economist sounded a warning shot about the Inidan economy in a recent issue.
 
Guys I am from India, India has huge potential for excellent returns, but it got plethora of risks ( legal issues, inheritance laws{the sale deed i have 23 signatures of grandsons and sons}, corruption, land grabbing and mafia, taxation, rental problems), i am a property investor myself , i feel safe buying in this part of world and hence got chunk of all my portfolio here in Ireland, i do have investment lands , but it took 2 years to do research and to over come all problems.

Land is big demand due to huge population, if some one can de-risk themselves against complex inheritance laws, Land investment will yield returns in excess of 100% per annum. so the trick is how to do it and local knowledge. firsly Indian laws dont allow foreign nationals to buy Lands, foreign companies can buy - capital gains tax for foreign companies is 36%

Apartments and apartment schemes in India -this is big 'congame' going in UK and India to entice gullible public showing rental yields etc, i know a company selling apartments in Goa for £30K, and locals they dont buy themselves to live in... firstly Indians have large families and there was no culture of adults moving out, people of 3 generations stay as families in large houses. Thats the culture, people live in apartments are single and divorced and divorce rates are lowest in world (culturally impossible) . only bet is on Young families who want live in apartments for 1-2 years untill their parents join them.

There are several issues - wake up guys and try to see whole picture , if the roof in my apartment house in Ireland starts leaking and tenant not vacating, i have insurance, legal covers, in India , you dont have any of those for indians living there,how could foreigners get those?Having said that one can apply a Greater fool theory to buy the Hype market-so in summary Indian apartments are purely for speculators.

Land is good investment- focus on de risking
 
Goa is being spoken about by a number of companies but investment there depends on your personal circutsant obviously. There is no form of local mortgaeg finance available so property is cheap at say 30k for an apartment but thats 30k out of your pocket (albeit over the construction of the property) without the ability to gear the investment with local finance.
 
im interested in buying an apartment in Chicagos financial loop for around 260000 usd anyone any comments or advice.
 
Weston, research office supply in chicago before you do anything. If you are thinking about investing in the same scheme i read about recently get some advice.

I looked into it myself and while it sounded great, I have been told by a friend operating on the ground in Chicago that there is a problem of oversupply in the market so rents may be a problem.
 
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