r2i forum

Hello everyone, I'm 45 years old with 14 year old twins. So after landing in US 15 years ago and wanting to go back for sure, I pretty much invested most of my earnings in India. Mostly in Real estate and stocks. In and around Bangalore and Chennai. Did not invest in US apart from 401K. I would say around 500K in total combined 401k/cash.

I must have invested around 300K in India which probably worth north of 1.5M. Give or take with tax and all the stuff and if I manage to convert it into USD ~1M. The idea was to tap into these investments at a a later date for house purchase or other expenses in US. I understand its a huge hassle selling Real estate in India these days. I probably would have come even if I had that money in US with stock and housing appreciating so much in metro areas where I live.

All these were good enough if I returned but developments back home has changed the situation and we have decided to stay. With the target to retire by 55-57, all of a sudden, I'm feeling I'm hitting midlife crisis thinking I should have done better.. for my age and my earning potential. ( Single earner around 210K in a management position in a major pharma company).

What do you guys advise, do I keep my real-estate in India in tact for few more years and tap into it later or try to liquidate and invest in US .. or do it right now with houses in metro going north on a monthly basis. Or delay house purchase assuming the Indian RE will keep up with US so I wont get into a house affordability crisis.. Or jump into the market now by becoming house poor and then try to bank on repatriation later... Oh dont forget, Real estate keeps losing its value.

So what is you guys wild guesses on housing trend in both countries with India GDP growth hitting 7.7 last quarter and its effect on exchange rate.. Would a financial situation like this tilt R2I decisions ??

I would try to liquidate half of my real estate in India now and keep other half for better days.

Imagine if RE falls another 30% in India since the goal of the govt itself is affordable homes.

Since your destination is USA its better to have a home here where you will be working for next 10 years.

kingeleven;674983Hello everyone, I'm 45 years old with 14 year old twins. So after landing in US 15 years ago and wanting to go back for sure, I pretty much invested most of my earnings in India. Mostly in Real estate and stocks. In and around Bangalore and Chennai. Did not invest in US apart from 401K. I would say around 500K in total combined 401k/cash.

I must have invested around 300K in India which probably worth north of 1.5M. Give or take with tax and all the stuff and if I manage to convert it into USD ~1M. The idea was to tap into these investments at a a later date for house purchase or other expenses in US. I understand its a huge hassle selling Real estate in India these days. I probably would have come even if I had that money in US with stock and housing appreciating so much in metro areas where I live.

All these were good enough if I returned but developments back home has changed the situation and we have decided to stay. With the target to retire by 55-57, all of a sudden, I'm feeling I'm hitting midlife crisis thinking I should have done better.. for my age and my earning potential. ( Single earner around 210K in a management position in a major pharma company).

What do you guys advise, do I keep my real-estate in India in tact for few more years and tap into it later or try to liquidate and invest in US .. or do it right now with houses in metro going north on a monthly basis. Or delay house purchase assuming the Indian RE will keep up with US so I wont get into a house affordability crisis.. Or jump into the market now by becoming house poor and then try to bank on repatriation later... Oh dont forget, Real estate keeps losing its value.

So what is you guys wild guesses on housing trend in both countries with India GDP growth hitting 7.7 last quarter and its effect on exchange rate.. Would a financial situation like this tilt R2I decisions ??

I know the mixed feelings. many of us are in the same boat.
You may want to look into reliable, trustworthy asset managers in India if you intend to keep the assets for long time.
In fact, I'm even thinking of starting such a service since I haven't heard of such service..

Still.. any forum members here can recommend any professional property management service in Blr?

VadheraHalli;674990I know the mixed feelings. many of us are in the same boat.
You may want to look into reliable, trustworthy asset managers in India if you intend to keep the assets for long time.
In fact, I'm even thinking of starting such a service since I haven't heard of such service..

Still.. any forum members here can recommend any professional property management service in Blr?

If you have cancelled R2I plans, sell everything in India and get the money before you lose it all.

Property in India will not appreciate till black money is allowed to flow freely. Right now lot of fear. Plus needs lot of high paying jobs to grow. At present investors are out of market. Jobs are not in plenty. But like everything it will not stay like this forever. My wild guess is until bjp is in power it will not boom again. So it's totally up to you if you are ready to take a haircut in property in India to buy a house in US. It maybe worthwhile to start the selling process and see if you get any bites.

VadheraHalli;674990I know the mixed feelings. many of us are in the same boat.
You may want to look into reliable, trustworthy asset managers in India if you intend to keep the assets for long time.
In fact, I'm even thinking of starting such a service since I haven't heard of such service..

Still.. any forum members here can recommend any professional property management service in Blr?

Nestaway and there are some others which do it in India. They do rental managment and buying/selling of properties.

OP, I was under a similar situation with some differences. based on my experience
1. Keep your majority of financial assets in USA such as maximize 401k, invest in Roth IRA, 529, stock market and so on..
2. Liquidate your indian assets as much as possible, even if you start now may take several years as demand is low and black money is limited..at the same time you may want to hold off on the assets which are in prime location as indian real estate has started appreciating. But the appreciation may be offset by depreciating rupee for which predictions are dire

Isn't the thought process of selling now suffers from the same pitfalls as market timing. Would you sell stocks if the market is down 10% - 20% ?

Lets consider the facts

1. Growing and favorable demographics of India
2. The Indian Economy is the fastest growing economy among large economies
3. The concentration of service jobs is in few metro's (most prominently Bangalore where OP's real estate assets are)

Eventually the market will absorb the after effects of the triple whammy - RERA, demonetization and GST. If the economy is roaring, young work force is moving in and jobs are getting generated than Real Estate market will pick up. if you can afford to hold, I would suggest that. As the old man wisely said
“Fearful when others are greedy and greedy when others are fearful.” IMHO right now everyone is fearful so be greedy. :)

Thanks everyone..

Looks like I'm fearful of US market rising to an un-affordable level at the same time fearing Indian market tanking..
My gut feeling is the opposite may happen.. I'm not trying to time the market but the R2I situation is forcing me to make a decision..

I feel that I won't be making any career breakthrough or huge income in the coming years in the US to make up for enough $$$ to retire here, without the assets abroad..
The US job market is OK as we haven't seen wage growth keep up with house prices. So I have to now bet on my assets abroad..

I have no doubt that the Indian market is great in long term but the current situation is kinda messing with my mind..

IM me if you need my property mgr contact