Real estate investment overseas vs USA market

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kbandi
Posts: 1
Joined: Tue Sep 12, 2017 11:13 am

Real estate investment overseas vs USA market

Post by kbandi » Tue Sep 12, 2017 12:52 pm

Hi, I am very new to this forum so please pardon my ignorance. Let me start with my background. I am originally from India and moved to States to pursue my masters. Its been more than 4yrs I have been working with very reputed corporation here in USA. I have been thinking for quite a few months to invest in real estate. But my biggest dilemma is to do in USA or back in India. Indian real estate market specially in big metropolitan city like Mumbai have really good ROI. I do not have a home here in US as of now. So to summarize i have following qus,

1] If I buy a home in India with loan approved, will this affect my credit rating here in US when i plan to buy here as well?
2] Will bank charge me with higher interest rates here in US if I have a debt overseas?
3] Is it wise move to buy first home in my own country first and stay in rental apartment in USA for a year or so?

dbk
Posts: 17
Joined: Sat Aug 26, 2017 2:50 am

Re: Real estate investment overseas vs USA market

Post by dbk » Tue Sep 12, 2017 10:45 pm

kbandi wrote:
Tue Sep 12, 2017 12:52 pm
1] If I buy a home in India with loan approved, will this affect my credit rating here in US when i plan to buy here as well?
I discussed with a colleague of mine who is from India and owns an apartment there. He confirmed there is no impact in his case and isn't being tracked here.
kbandi wrote:
Tue Sep 12, 2017 12:52 pm
2] Will bank charge me with higher interest rates here in US if I have a debt overseas?
How much debt are you planning in India? If it's very less, the impact should be tiny.
kbandi wrote:
Tue Sep 12, 2017 12:52 pm
3] Is it wise move to buy first home in my own country first and stay in rental apartment in USA for a year or so?
It depends on cost of housing you are looking for in India. If it's too impactful and ROI is very huge, then from investment perspective, it's better to buy there. However, consider the maintenance (and travel?) costs overseas.

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unclescrooge
Posts: 1599
Joined: Thu Jun 07, 2012 7:00 pm

Re: Real estate investment overseas vs USA market

Post by unclescrooge » Wed Sep 13, 2017 6:30 am

One consideration is whether you're planing to move back to India permanently.

If not, then no. One of my friends made major real estate investments in India, which he now regrets.

The devaluation of the rupee has negated a substantial portion of his gains.

Once his elderly father dies, no one will be around to look after the properties.

Getting the money out of India is a major hassle.

Properties in India do not have positive cash flow. You're speculating on the future appreciation.

Whenever you transfer money, you always lose about 5% in transfer fees. So round trip, you're out 10%.

However, there seems to be a huge cultural emphasis on buying property back home. Maybe it's part of a diversification plan, and may have benefits that are not necessarily financially optimal.

runner540
Posts: 400
Joined: Sun Feb 26, 2017 5:43 pm

Re: Real estate investment overseas vs USA market

Post by runner540 » Wed Sep 13, 2017 6:51 am

dbk wrote:
Tue Sep 12, 2017 10:45 pm
kbandi wrote:
Tue Sep 12, 2017 12:52 pm
1] If I buy a home in India with loan approved, will this affect my credit rating here in US when i plan to buy here as well?
I discussed with a colleague of mine who is from India and owns an apartment there. He confirmed there is no impact in his case and isn't being tracked here.
kbandi wrote:
Tue Sep 12, 2017 12:52 pm
2] Will bank charge me with higher interest rates here in US if I have a debt overseas?
How much debt are you planning in India? If it's very less, the impact should be tiny.
kbandi wrote:
Tue Sep 12, 2017 12:52 pm
3] Is it wise move to buy first home in my own country first and stay in rental apartment in USA for a year or so?
It depends on cost of housing you are looking for in India. If it's too impactful and ROI is very huge, then from investment perspective, it's better to buy there. However, consider the maintenance (and travel?) costs overseas.
It might not be captured in the credit rating, but the OP should be careful when reading the mortgage application - they may require him/her to list all debts and property, and it would be fraud to exclude foreign unless the question says to exclude them.

dbk
Posts: 17
Joined: Sat Aug 26, 2017 2:50 am

Re: Real estate investment overseas vs USA market

Post by dbk » Wed Sep 13, 2017 1:24 pm

kbandi wrote:
Tue Sep 12, 2017 12:52 pm
It might not be captured in the credit rating, but the OP should be careful when reading the mortgage application - they may require him/her to list all debts and property, and it would be fraud to exclude foreign unless the question says to exclude them.
Totally agree.

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