Should I buy a house in India now or later ?

maheshk · Post by **maheshk** » Sun Jul 08, 2012 2:41 am

Hi All,
I have got GC recently as part of the movement happened in EB2.
My intention is stay here for around 5-7 years (after citizenship) and move back to India. When I move back, I wanted to live in a decent sized house (~1600 sqft flat). Currently I have a house @ chennai but as its little smaller one, I wanted to go for a bigger one. Its going to cost me around 60L to buy the bigger one and I have to take housing loan.
As I am planning to R2I , I am not sure whether I can afford a house at that time. So my dilemma is whether I should buy a house in India now or later when I decide to move back? The caveat is that if I buy now, I have to pay it off within 2-3 years i.e for me to get citizenship I need to buy a house here. And to buy a house here, I cannot afford to have the india housing loan not payed off...

Any suggestions ?

Thanks!

music4u4 · Post by **music4u4** » Sun Jul 08, 2012 3:42 am

Why exactly do you need to buy a house here in US to get the citizenship? Is this something new that has come into effect?

As far as buying in Chennai is concerned, you should buy now. I would expect Indian RE to grow faster than the US RE.

maheshk · Post by **maheshk** » Mon Jul 09, 2012 8:09 am

During naturalization, one has to prove the intention to stay in US for ever and one of the way is to show the assets owned in US. for ex, Owning a house would be a easy way. As i just got the GC, may be I have not done my research yet and might be wrong..
Suggestions welcome...

kalki · Post by **kalki** » Mon Jul 09, 2012 8:21 am

You don't need to have a house in the US to get citizenship. As long as you stay here for most of the 5 years, that is a valid enough reason.

maheshk;464159During naturalization, one has to prove the intention to stay in US for ever and one of the way is to show the assets owned in US. for ex, Owning a house would be a easy way. As i just got the GC, may be I have not done my research yet and might be wrong..
Suggestions welcome...

r2kop · Post by **r2kop** » Mon Jul 09, 2012 8:23 am

maheshk;464159During naturalization, one has to prove the intention to stay in US for ever and one of the way is to show the assets owned in US. for ex, Owning a house would be a easy way. As i just got the GC, may be I have not done my research yet and might be wrong..
Suggestions welcome...

This is wrong information. You don't have to prove any intention or own any property to get USC.

srinpo · Post by **srinpo** » Mon Jul 09, 2012 9:53 am

maheshk;464056Hi All,
I have got GC recently as part of the movement happened in EB2.
My intention is stay here for around 5-7 years (after citizenship) and move back to India. When I move back, I wanted to live in a decent sized house (~1600 sqft flat). Currently I have a house @ chennai but as its little smaller one, I wanted to go for a bigger one. Its going to cost me around 60L to buy the bigger one and I have to take housing loan.
As I am planning to R2I , I am not sure whether I can afford a house at that time. So my dilemma is whether I should buy a house in India now or later when I decide to move back? The caveat is that if I buy now, I have to pay it off within 2-3 years i.e for me to get citizenship I need to buy a house here. And to buy a house here, I cannot afford to have the india housing loan not payed off...

Any suggestions ?

Thanks!

You are aware of x=x+1 syndrome right ? Everyone feels they will return someday, but when the day comes nearer, they find 'new' issues in India like DIL cant get well with MIL, pollution etc. So even if you think and sure you are going to return someday, emphirical evidence suggests that it is very less likely. In that case better to wait and if you really move you can have more data based on your life style , financial capability, location etc. and buy. In fact even then you should rent for a few years before buying.
Thats what I did and have survived last 13 yrs after R2I.

maheshk · Post by **maheshk** » Mon Jul 09, 2012 9:03 pm

srinpo;464169You are aware of x=x+1 syndrome right ? Everyone feels they will return someday, but when the day comes nearer, they find 'new' issues in India like DIL cant get well with MIL, pollution etc. So even if you think and sure you are going to return someday, emphirical evidence suggests that it is very less likely. In that case better to wait and if you really move you can have more data based on your life style , financial capability, location etc. and buy. In fact even then you should rent for a few years before buying.
Thats what I did and have survived last 13 yrs after R2I.

I have heard numerous instances from others of postponing the decision to R2I and I agree with you.
R2I'ing now (or earlier like you) and 7 years later might be little different. i.e standard of basic amenities (Road, traffic, pollution etc.,) might improve (I know I am being very optimistic).
Basically its always my desire to buy a nice and decent house in chennai and it (partially) happened couple of years ago. As the market is always ahead of my affordability, even to buy now, its going to be 5 year plan to pay it off. Being conservative in my life so far, wanted to think thru better, before signing something...Hope it clarifies

mobi · Post by **mobi** » Wed Jul 11, 2012 6:49 pm

I would say, unless you are sure of exactly when you want to do R2I, buy a house in USA now.

By doing so, you can enjoy the house for next few years rather than paying rent.

If you buy a house in India now, there is no guarantee what will happen after few years, your money will be tied to that house and if you return to a different city the house won't be of any use.

Enjoy your present without worrying too much about future.

Although it is very difficult to predict economy, I personally believe that real estate price in India will come down in future. The current level of growth is not sustainable. Price has already stabilized in many parts of the country.

dbs · Post by **dbs** » Thu Jul 12, 2012 2:21 am

mobi;464663Although it is very difficult to predict economy, I personally believe that real estate price in India will come down in future. The current level of growth is not sustainable. Price has already stabilized in many parts of the country.

Agreed that the current rate of growth is not sustainable, but it is not going to crash like it did in usa. It is still going to be profitable.

lourdessmith · Post by **lourdessmith** » Tue Jul 31, 2012 1:10 pm

Having a debt is not good! If you are self sufficient then go ahead but I suggest that you should buy a home that you will want to stay there for a long time!