Posts: 1628
Location: carl sagan's universe
Posted on: 27-12-09 19:40:02
Location: carl sagan's universe
Posted on: 27-12-09 19:40:02
Quote:
Originally posted by investpro
Quote:
Originally posted by Nightmare
Couple of things to remember.
India is a lawless country. Contracts have a little sanctity in law (Ref Ambani brothers dispute on Gas deal). If you buy a property on India and somebody occupies illegaly , you will not be able to get back posssession. In India, justice system is dysfunctional and it takes decades to resolve any dispute. Further Indian rupee depreciates every year which will reduce value of your investment.
Further very soon Indian Govt will be entering in information exchange treaty with foreign Govt including Canada and you might find yourself in trpuble with incomeax dept in Canada.
India is lawless?
If so if somebody occupies illegally you retake illegally.
Aur kya?
Also if India is lawless- what is the meaning of illegal?
Quote:How much down payment did you put up?
Originally posted by investpro
Is that now or before?
I bought a property in the US just last year with a loan from a Canadian bank.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by Nightmare
Further Indian rupee depreciates every year which will reduce value of your investment.
Further very soon Indian Govt will be entering in information exchange treaty with foreign Govt including Canada and you might find yourself in trpuble with incomeax dept in Canada.
Hi,
I like to hear your comprehensive perspectives about these two points. For the first one, you could take the history of last 10 years, taking both the currency exchange and gross property appreciation in Non-Metro cities where the majority find affordable.
On the second point, why do you think it could be an issue? there are some exemptions on declaration and even then the tax treaty, ability to close the property on black + white together etc., still make things attractive. Unlike a certain doom in property is something I see imminent, I do not see the same with India for next 7-8 years, Any peak needs to see its low so near-long term still appear rational to me than brunt of risk here.
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Quote:
Originally posted by Nightmare
Further Indian rupee depreciates every year which will reduce value of your investment.
Further very soon Indian Govt will be entering in information exchange treaty with foreign Govt including Canada and you might find yourself in trpuble with incomeax dept in Canada.
Hi,
I like to hear your comprehensive perspectives about these two points. For the first one, you could take the history of last 10 years, taking both the currency exchange and gross property appreciation in Non-Metro cities where the majority find affordable.
On the second point, why do you think it could be an issue? there are some exemptions on declaration and even then the tax treaty, ability to close the property on black + white together etc., still make things attractive. Unlike a certain doom in property is something I see imminent, I do not see the same with India for next 7-8 years, Any peak needs to see its low so near-long term still appear rational to me than brunt of risk here.
The dispute with tenants (illegal occupancy) does pose a great threat than the other two and as such things have evolved to mitigate the threat to some extent. The more the value of the property, the greater it is susceptible to similar risks.
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Posts: 1628
Location: carl sagan's universe
Posted on: 28-12-09 18:51:40
Location: carl sagan's universe
Posted on: 28-12-09 18:51:40
Quote:
Originally posted by pratickm
Quote:How much down payment did you put up?
Originally posted by investpro
Is that now or before?
I bought a property in the US just last year with a loan from a Canadian bank.
25% downpayment.Also the property I am eyeing in one of the islands is with 20% down.
The Canadian bank for the US prop has US tie-ups.The one in the islands has branches on that island, so maybe it is registered in the island and is an island bank.
Quote:OK, now you've piqued my curiosity - you've got to tell me which is this mysterious, exotic island that you're planning your secret house at.
Originally posted by investpro
Also the property I am eyeing in one of the islands is with 20% down.
The Canadian bank for the US prop has US tie-ups.The one in the islands has branches on that island, so maybe it is registered in the island and is an island bank.
Regarding the mortgage from bank, I had been hearing about folks having trouble getting mortgage for US properties with less than 50% down.
There was also a similar article in November issue of MoneySense magazine about early retirees having trouble securing loans for retirement properties in the US.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by JRF
Quote:
Originally posted by Nightmare
Further Indian rupee depreciates every year which will reduce value of your investment.
Further very soon Indian Govt will be entering in information exchange treaty with foreign Govt including Canada and you might find yourself in trpuble with incomeax dept in Canada.
Hi,
I like to hear your comprehensive perspectives about these two points. For the first one, you could take the history of last 10 years, taking both the currency exchange and gross property appreciation in Non-Metro cities where the majority find affordable.
On the second point, why do you think it could be an issue? there are some exemptions on declaration and even then the tax treaty, ability to close the property on black + white together etc., still make things attractive. Unlike a certain doom in property is something I see imminent, I do not see the same with India for next 7-8 years, Any peak needs to see its low so near-long term still appear rational to me than brunt of risk here.
The dispute with tenants (illegal occupancy) does pose a great threat than the other two and as such things have evolved to mitigate the threat to some extent. The more the value of the property, the greater it is susceptible to similar risks.
I believe that in future , due to abundance of natural resources in Canada, Canadian dollar should appreciate against the world currencies , more so against Indian rupee as the Congress Govt has bankrupted the economy. Present relative strength of rupee is due to heavy inflow of foreign currency in India for portfolio investment (hot money which can be withdrawn any time) and ECB / FCCB borrowings. When chickens will come home to roost in 5 years, Rupee should and would depreciate heavily. Just look at the Indian companies who borrowed by issuing FCCB. The stupid guys had nice time while FCCB interest rates were low and then boom... Rupee depreciated so quickly against Japanese Yen (Most borrowing were in Yen) and in a year they lost their clothes. So my friend, do not bank upon strength of Rupee which is artificial. India has HUGE trade deficit.
As regards tax treaty, once the treaty is signed, one may be in trouble because Canada taxes WORLDWIDE income.
As regards illegal occupation, its very common , especially if youa re NRI and there is no one supervising the property. India is truly a lawless country. Where the court disputes take decades to get resolved, how do you have to have justice?
