Property in India

F

Freddie

Registered User
Messages
186
Anyone have any comments on the apartments for sale in India re article in yesterdays Irish Indepedent property section. Starting at 25000 with guaranteed rental income of 7% (net) for 5 years
 
MOPRF said:
I would certainly seek legal advice before purchasing as the laws for foreign investors are a little more complex that if you were buying in Europe.
Click to expand...

Any suggestions on where to get this advice? I'd imagine this is outside the expertise of most local solicitors.
 
I too am considering buying one of these properties - 7% rent each year for 5 years guaranteed and they sell the apartment after that. Know nothing about India though!! Any suggestions or is this another catch?
 
doughiska said:
I too am considering buying one of these properties - 7% rent each year for 5 years guaranteed and they sell the apartment after that. Know nothing about India though!! Any suggestions or is this another catch?
Click to expand...

Personally wouldn't invest in any market that I hadn't researched thouroughly. Who is giving the guarantee? If there are problems down the line that necessitate a visit to India for a few days you could easily go through one years rent on the trip !
 
doughiska said:
I too am considering buying one of these properties - 7% rent each year for 5 years guaranteed and they sell the apartment after that. Know nothing about India though!! Any suggestions or is this another catch?
Click to expand...


Who sells the apartment doughiska? Larionovo?

They certainly are cheap. A friend of mine bought a new car today that was alot more expensive :). But has been pointed out best to do alot of research on India before any purchase. Maybe a bit too good to be true!
 
Buying property in India is risky. You really do get what you pay for as in any situation. A good property in central Dehli will set you back 90k for a good three bedroom apartment. recently there were issues with high rise buildings. Many highrise apartment blocks were constructed without planning permission. Because of the vast infringement of these rules the Indian government gave an amnesty regarding these buildings but pledged to enforce planning laws more stringently in the future. So make sure that any property has prior planning approval.

Corruption is also a problem in India and has permeated through all levels of society. You really have to know people over there to stop yourself from getting 'done'. Forgery on deeds and other paperwork is extremely common. Bribes will have to given at some of the buying stages. as previous posters mentioned if have to take a trip over there for any reason it will cost min E600 for the flight alone.

Not recommended at all unless you are willing to pay for professional assistance in aquiring and maintaining the property! If you wish to have a stake in the property market look at property bonds based on the indian property market. Much much safer. Sorry for the negativity but this is the sad reality of the Indian property market.
 
An Indian collegue of mine has passed on the following reputable Indian companies in the property market.

Here is a list of reputed property firms in India.

http://www.ltproperties.com/ - One of the most respected firms in India.

another good one http://www.krahejas.com/homepage.asp

Big shots in Bangalore http://www.mantri.info/ http://www.adarshdevelopers.com/ http://www.brigadegroup.com/index.htm​

His recommendation to me is to purchase in Mumbai in and around where all the big Muti-Nationals are located. Prices I have been supplied with are in the region of €120K - €160K but what your getting is a 3 bed apartment @ around 3000 Sq Foot. He mentioned rental in the region of €800 a month but I have not confirmed the figures. There are other costs I don't have figures for such as Maintenance Changes and I don't know the legalities around foreign property ownership, legal costs etc. so I'm still in research mode.

Hope this helps.

Regards,
MikeM
 
also looked at buying here 25k property works out at 34k total costs to buy no expert but looks like quite big gain to break even imop
 
doughiska said:
I too am considering buying one of these properties - 7% rent each year for 5 years guaranteed and they sell the apartment after that. Know nothing about India though!! Any suggestions or is this another catch?
Click to expand...

Why not ask them to give you a ten year rental guarantee? It will only put the price up by another few thousand!!!

Free lunches are only available down at the homeless shelter!
 
I was very impressed with the prices advertised and checked it out a little. Seemingly (as advertised on their own site) the apartments are 300 sq ft, which is very small (Irish 1 bed apts are about 500 sq ft minimum). This is strange given the amount of land in India.

So I checked out some indian property sites and found a few interesting properties. HOWEVER, it appears that IRISH people CANNOT BUY property in India. The following link is to India's central bank, and the relevant regulations:

http://www.rbi.org.in/scripts/FAQView.aspx?Id=33

Of particular note is the following:

Q.6. Can a foreign national of non-Indian origin resident outside India purchase immovable property in India?

A.6. No. A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India. But, he/she may take residential accommodation on lease provided the period of lease does not exceed five years.

I would be delighted if someone could show me up as being incorrect here. If I am wrong, I would be interested in acquiring a property in Bangalore, as this seems to have a lot of the IT market and is growing massively.
 
I have had personal experience of the local market and trust me, the bureaucracy and corruption in India make it a very risky investment. Very often family owned land is sold without the consent of all members of the family which means that the land or property can be tied up in litigation for years (the local judiciary is another story). The registration etc., is a nightmare.

Finally, you cannot repatriate any of your earnings/profit to this country.
 
Hi Tara,

What do you mean personal experience? Would you definitely reccommend against it then? How do you mean that you can't repatriate profits - if you sell a property that you can't get the money out of India?
 
Freddie said:
guaranteed rental income of 7% (net) for 5 years
Click to expand...


I'd be extremely wary of any guaranteeed rental income. Have a look at a few of the Bulgaria threads and you might get my gist . This has been talked about before. This guaranteed rental income is frequently a scam which inflates the price in a market where locals cant afford the properties or the rent you have been sold hence little prospect of rental income after the guarantees run out. You get your own money back as 'rent' and ironicly then end up paying income tax on your own money. It would be more transparent to get a discount from the selling price.
 
There is an article in todays Sindo about Properties in India with guarnteed rental income.....I presume its the same company that were in an article earlier in week. I think India seems a bit risky and is too far away and I dont know enough about legal system to buy an apartment.

However, I wonder are their any syndacites or funds based on the Indian market available in Ireland if there really is such potential in the market? Surely there must be products such as these available........I presume they would be a bit safer as normally risk is shared over many different properties in different areas thus reducing the risk.
 
glassoo said:
Hi Tara,

What do you mean personal experience? Would you definitely reccommend against it then? How do you mean that you can't repatriate profits - if you sell a property that you can't get the money out of India?
Click to expand...


We visit india often and thought about buying a place there. It was a nightmare - the bureaucracy gone mad, bribery expected, nothing is watertight and as foreigners there is no way of converting the local currency into euros in order to repatriate any profits/proceeds of a sale. I don't quite know how the companies advertising property there are going to get around this.
 
My husband is from India - born & reared there & he wouldn't consider buying property there as an investment. I would agree with everything Tara01 says.
 
I was also looking at this investment - it sounded to good to be true - and definitely appears to be based on commentary here. If profits cannot be repatriated and foreign investors cannot have outright ownership of the properties surely the 5 year rental guarantee deal Larionovo are offering is nothing more than a leaseback?! The sales agents mention some 'unusual hoops' which must be jumped through to purchase ... does anyone know if this can successfully be done?
 
I believe the way around repatriating funds is to buy through a company and then wind up the company when you sell the property (this is what Larionovo sales staff have told me on the advice of an accountant apparently)

I know of a businessman of Indian origin who has wound up his business interests here in Ireland and moved to india to get more involved in the property market. I also know that he has owned several properties in Delhi which he sold last year for 5 x what he paid for them (don't know when he bought them). So some people are doing ok out of it!
 
I believe the way around repatriating funds is to buy through a company and then wind up the company when you sell the property
Click to expand...
As an Irish resident be very careful when buying a property through a company as under Irish law any money received from a company in any part of the world at any time is treated as income and taxed accordingly.

Seek professional tax advise in ireland before setting up a foreign company and implications under irish law.
 
You must log in or register to reply here.
Back
Top