Tips for buying properties in foreign countries

The current economic turmoil in US and European nations have led to a sharp fall in property prices there making them extremely lucrative for non-resident Indians as well as resident Indians to invest in. More and more Indians are opting for offshore properties as a second home in exotic locations. However the process of purchasing a property in foreign countries has its own share of complexities, which need to be addressed before committing the money.

 Properties owned by banks as a result of foreclosure or as non performing assets are the most sought after while there are a few places, which advertise their real estate as means of secure investments for foreigners. Indians are increasingly acquiring properties across the globe but the leading destinations for offshore properties remain London, New York, Singapore and Dubai. Exotic holiday destinations such as Thailand, Malaysia, Southern France, Florida and Mauritius are also gaining rapid popularity among those looking to invest abroad in real estate.

 London is popular due to its assured returns over a long horizon while resort locales are being used as a second home for the rich and famous. The sea side resort of Pattaya is offering three bed room independent houses at prices as little as Rs 60 to 70 lakh (Rs 607 million) which are pretty competitive compared to such houses in Tier 1 cities of India. US is, usually, preferred by Indians who have either studied there or have worked for some time.

 Despite the high prices of real estate in Dubai, it is still popular due to its proximity to India and the presence of large Indian diasporas in the city. Before even thinking of buying a property offshore one needs to be absolutely clear regarding property laws in India and other countries. Indians are permitted to buy property in foreign nations by making an annual remittance of up to $ 2000000 in a financial year. The Foreign Exchange Management Act also permits Indians to acquire property abroad as gifts or through inheritance. Additionally resident Indians can own property elsewhere in case it was acquired while they were not residents of India. However one must consult trusted legal experts in the country where they want to buy the property in regarding local taxation policies, citizenship laws and ownerships provisions.

Many nations mandate foreigners to pay a huge property transaction fees while making the purchase. Extra stamp duty costs are often levied on foreigners acquiring property in certain countries which may add up to the total cost significantly.

Here are a few practical guidelines that will come handy while setting out to buy yourself a house in some exotic location abroad or a simple investment in foreign countries.

•  Make sufficient number of visits to that place during different parts of the year to get a broad overview of the locale. 
• Remember there is adequate scope of bargaining at all places around the world and do not swayed by the quoted price. 
• Get a consolidated list of all transaction charges, stamp duties and associated fees for buying the property beforehand. 
• Always negotiate through a reputed property brokerage firm of that country. 
• Additionally hire an independent legal advisor to give detailed inputs. 
• Time your purchase when the exchange rates of that country's currency are in your favor. 
• Understand the legal implications of your purchase and rules that govern your access to that country. 

Owning a grand property in foreign nations is no more the domain of the super-rich. However there is a definite need for detailed analysis and planned approach in order to get a good deal and avoid legal complications subsequently.

Deep Pockets for Classy Apartments

Imagine a home not only defined by sophisticated style and sumptuous furnishings, but equipped with impeccable service delivered by The Ritz-Carlton. From housekeeping and valet services to gourmet dining and dedicated concierge, you'll enjoy five-star living.

A house is made of people but the people who you live with if they are happy to spend more time at home than out, you must be rest assured its one pretty house and people are willing to live in it forever.

After doing residences in Singapore, New York, Bangkok, San Francisco and elsewhere, it is in talks with Bengaluru-based developer plans to do it in Chennai.
Currently the estate is doing three projects, in Bengaluru, Chennai and Goa.

Luxury demand: The rush to build branded residences is not without reason.

According to a report by Knight Frank and Citi Private Bank, a higher number of high net worth individuals are choosing luxury properties in Asian cities such as Mumbai and Shanghai.

While almost 40 % of the world's most exclusive residential property markets increased in value during 2010, six of the 10 biggest risers were in Asia, the report says.

"We are having some serious negotiations with a few partners. We have plans to set up at least a couple of projects, starting from Mumbai and Delhi. There is a reasonably high demand for such projects in India, especially in the metros.

Our aim is to open the first property in the next three years," says K B Khachru, executive vice president, South Asia, Carlson Hotels.

Adds Reema Kundnani, vice president, marketing and communications, at Oberoi Realty: "Branded residences are a hugely successful concept internationally. Our whole strategy is to bring that international living to India. We want to cater to the demand from global Indians."

Luxury homes are priced between $1 million (Rs 4.4 crore) and $3 million (Rs 13.2 crore), depending on size and other factors.

Source: http://www.rediff.com/business
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Are you prepared for this year's life events?

Our lives are shaped by various events that come with financial consequences. Many people get swept up in such events without being financially prepared. Life events range from the significant milestones of getting married, the birth of a child, buying a home, caring for aging parents, to the loss of a loved one, planning for retirement and your estate. What are the major life events you anticipate this year? Are you prepared for them financially?

Getting married?
Are you planning to get married this year? What a thrill to plan and prepare for a wedding but far too often an important aspect of the marriage, the merging of financial lives, is ignored. Money is an important aspect of marriage and one of the most difficult topics to deal with. Open communication will help you both to align your goals, which ultimately makes for a more successful marriage. As you build financial security together you will need consensus and compromise for some money related issues. It may not sound terribly romantic, but issues such as establishing joint bank accounts are important matters that ought to be discussed. Home ownership, having children, and funding their education naturally should be on the agenda for discussion as well. Remember to review your important documents carefully to ensure that they reflect your new marital status.
Are you the parent who is expected to finance your son or daughter's wedding? Quite often, much of the financial burden of the actual wedding day is likely to fall on the shoulders of parents already in retirement. Where will this money come from? If your child's wedding is imminent, plan ahead and try to work within a budget appropriate for you so that costs do not spiral completely out of control and jeopardise your finances. Do not be in competition with your in-laws who may have far greater resources than you do.

Are you expecting a new baby?
The birth or adoption of a child is one of life's most fulfilling events. New parenthood naturally comes with new financial responsibility and raising a family presents new budgeting challenges. Start to review and estimate current and future expenses, from nappies to university fees! An equity mutual fund would make an ideal savings vehicle for all the early cash gifts that your child might receive as there are strong prospects for long-term capital growth.Child-care is likely to be a major expense, especially as many mothers must return to work. Even if you are able to stay at home with the children, bear in mind that an extended absence from work, skills and training, could limit your future career options, and therefore your lifetime earning potential. If you do wish to pursue a career, consider part-time work or pursuing training and education whilst the children are still young.
The birth of a child is a good time to make a will, if you don't already have one, and review your insurance policies to include the latest beneficiary. The will should make provisions for guardianship if both parents die while the children are still minors.

Owning your own home
Are you planning to buy or build your own home? A home is one of the most significant purchases you will make in your lifetime. If this is on the horizon this year do make sure it is within your budget and lifestyle and will not become a burden. If you know what your budget limitations are you will not be tempted to look at properties or houses outside of your price range. Location is everything, and a wonderful home in an undesirable area may not be worthwhile from the home value perspective.
Be careful with whom you deal as the real estate market can attract some unsavoury characters. Be particularly cautious and deliberate in ensuring that all essential documentation is in place.

Is retirement on the horizon?
Retirement should be a fulfilling and exciting time of life. If you plan to retire this year or fairly soon, I hope you have been preparing long before now. How would you like to live in retirement and how much is it likely to cost? Assess your sources of retirement income, which should ideally include a pension, rental, and dividend income. Then calculate how much you must save to supplement it to be able to afford the lifestyle you envisage. There are numerous online retirement planning calculators that should help you in making these estimates. Your Pension Fund Administrator ("PFA") will also be able to assist in this regard.
Don't forget to build in issues of aging, such as provision for medical health care. Estate planning should be on the front burner, as you age. As life goes naturally through its various stages, so too should your financial planning. Review your financial objectives regularly to keep them in synch with events that shape your life. Even if you have been fairly consistent with your planning since your twenties or thirties, by the time you are in your 50s or 60s you will.

Source : http://234next.com

Why you must take a joint home loan

Buying a home is a milestone goal in most people's lives and the earlier they achieve this goal, the more peaceful they feel. In current conditions building or buying a home without a loan is a difficult task especially if you are in your mid-twenties and early thirties.

True earlier generations waited for nearly a lifetime to save money for this goal, but this is not the case with the current generation, and with rising real estate prices this does not seem a sensible option as well. Nowadays, everyone wants to achieve goals early so that they can enjoy the fruits of their labour, when they are brimming with youth.

The younger you are when you take the loan the better it is, as you will be able to pay it off in the next 20-odd years, and will be able to own a home before you are well into your retirement.If taking a loan early is an advantage, taking a joint home loan is a double advantage. Why? Listed below are the reasons.

a. The most significant advantage of a joint home loan is the increase in your loan eligibility. Incomes of the individuals taking a joint home loan are combined to determine the eligibility and it results in a higher loan amount.

b. Tax rebates are yet another advantage - as each of the individuals taking a joint home loan is eligible for individual tax benefits under Section 80 C currently for principal repaid and under Section 24 for interest repaid. However, these tax deductions are capped at 1 L for the principal repaid and 1.5 L for the interest repaid for each individual.

c. The number of people who can avail a joint home loan can be anywhere between four and six, depending on their individual credit profiles.

d. There is however one condition when banks lend money to joint home loan applicants, which is, all co-owners of the property should also be co-applicants, but the reverse need not be true.

Joint home loans are very much possible, but they do have their restrictions in terms of whom you can pair with for availing the loan.

Source : Rediff Business