Many Indians living in the US are looking for a residential property here.This trend is beginning to gather pace in the light of the economy recovering and the brighter job prospects in the IT sector here.T RAJ BASAPPA,a realtor based in northern Virginia,shares some thoughts on whats prompting people in the US to buy property here,in a chat with B S MANU RAO
What's drawing US property investors to India
After the downturn,the property market in the US is yet to pick up.Increasingly,property investors are looking for options in India as the US realty market does not work well for them at the moment.The federal government has tightened the rules governing lending for homes,and this has made it more difficult to acquire residential property in the US.There is a lot more documentation needed now than before.It is easier for a US investor to invest in property in India at the moment..
Another factor that draws investors to markets such as India is the exchange rate advantage.The dollar goes further here.It is therefore easier to acquire a quality investment property in India than in the US for many.
What's the profile of a typical property buyer from the US
Many non-resident Indians (NRIs) who have lived there for a number of years are looking at coming back to India in the wake of the downturn.The job market here is much better in the IT sector and many are looking for career opportunities here.This segment is looking at investing in property here.
There is also the segment of people who have taken early retirement,or have been forced out of jobs thanks to downsizing and restructuring,who are looking at relocating back to India.This is another prospective segment of property investors for markets here.
Then there is the segment who wants to secure their future here.They feel they will want to relocate back home after some years and want to keep a home here for themselves to stay in then.They find this a good time to buy that home in the light of the price correction.
How does Bangalore work as a property investment destination
The 2,000 plus IT organisations here make Bangalore a great investment destination.There is opportunity in them.They offer potential careers for professionals trained and experienced in the US.The climate is good and the city's infrastructure in on the growth path.
The international airport is a good thing that has happened to the city as it makes it well-connected in the international arena.The Metro Rail will make the city easier to live in.The experience of the malls and entertainment easily available now,unlike in the past,is also a selling point for the city.
A significant plus point for this city is its high quality educational institutions.Many of those looking for a career in India prefer Bangalore for the quality education their children will get here.The fact that Bangalore is a cosmopolitan city with a diverse society helps too.
Is this new concept of affordable housing a draw for the lower income segment there
Typically,a 'lower income segment' can be defined as an earning of between $20,000 and $30,000 per annum.It would be possible for them to have some savings.They can buy 'affordable homes' here in the range of Rs 10-15 lakhs.It will take them around 3-5 years of living with a strict budget to do this.But the fact that it means a home here is a major motivation and this too is a potential segment of property buyers.
Are youngsters from here working in the US for better prospects buying property here too
Yes,this is a major segment too for the property market.There are many youngsters working in the US who send back money for their siblings to manage a property acquisition here - mostly houses - with the intention of ultimately moving into it.Many also work at acquiring a home here for the comfort and security of their aged parents.
This market is set to grow in the years ahead.In the past,parents of such youngsters would come over to live with them in the US.But this trend is changing as more are appreciating the comforts of an extended family that they don't get there.Many such parents who had come years ago are looking at relocating back to India too.
What kind of income would it take in the US to buy a property here
Anybody who makes over $1.50 lakhs per annum can by a house here comfortably while maintaining a good lifestyle there.Doctors,lawyers,engineers and entrepreneurs with their own private businesses can all make this sort of money.In case of working couples,the household income is double.This makes it easier for them to buy a home here.
There are many fresh graduates who come to the US from India,get a post-graduate qualification,and then end up with a job paying around $70,000.In 5-10 years,many of them will be in a position to buy property in India.
