Dear All,
I am going to buy some property in mumbai....
I am falling short of some funds so thinking of getting equity out of my home here in toronto, is it a good idea to do that?
The interest rate will be around 4% on the equity loan which looks reasonable ...whereas in mumbai I might get more then 10% appreciation per annum....
Any inputs will be appreciated...
Thanks
Absolutely...! it is no brainer to use equity if you have one to fund poperty in India if you have already made the decision. Just mare sure that you can afford to make the payments.
Buying a property in Mumbai is always a good idea.....Appreciation is so quick..... If it is a ready property, then you can even enter into a long term lease with some company with an automatic annual fixed percentage rent increase clause....this will help you maintain your property, while the mortgage payments will not be a burden....Nowadays, it is very safe to rent out property in India.....Plus, the deposit amount is also a substantial amount that you get.....All the best...
Quote:
Originally posted by aditya2007
Dear All,
I am going to buy some property in mumbai....
I am falling short of some funds so thinking of getting equity out of my home here in toronto, is it a good idea to do that?
The interest rate will be around 4% on the equity loan which looks reasonable ...whereas in mumbai I might get more then 10% appreciation per annum....
Any inputs will be appreciated...
Thanks
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks All
I am relocating to Canada in October 2012, and am planning to sell off an apartment I own in Navi Mumbai. Am prepared to work out a mutually beneficial deal, if part of the payment is made in Canada. The apartment will be ready for occupation by Diwali this year. Please PM me, if interested.
Hi aditya2007,
For this reason you were looking for HELOC. In this case it make sense to have equity out of your existing home and buy a property in mumbai. You might have done your calculations of benefiting from this decision so I won't go there.
As Pramodji said if you are showing this as rental property in Canada then good to have separate HELOC. Any expenses incured, interest paid, etc you may be able to write-off for being the investment property. And yes 4% rate seems little higher. Try to shop with different banks to have HELOC at lower interest rate so that you can save some $$. Try ING, RBC or Scotia if you haven't.
Quote:
Originally posted by aditya2007
Dear All,
I am going to buy some property in mumbai....
I am falling short of some funds so thinking of getting equity out of my home here in toronto, is it a good idea to do that?
The interest rate will be around 4% on the equity loan which looks reasonable ...whereas in mumbai I might get more then 10% appreciation per annum....
Any inputs will be appreciated...
Thanks
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