Purchase home back home

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msdev
Member since: Nov 09

Posts: 36
Location:
Post ID: #PID

Posted on: 26-02-12 22:12:02

Hi All. I need your advise regarding buying property in India.

I am a Canadian citizen but I may go back to India after some time to take care of my parents. So I am planning to buy a home now.

I am planning to take a bank loan from India as a NRI now so that I can move after I pay it off.

1) So what are the advantages or disadvantages of such an investment in India.
2) Is there any way I can take loan from Canada instead of India. It looks like it is expensive to take a bank loan from India. Interest looks like 11% and other bank fees.
3) How about the tax? Do I have to show it in Canada or do I have to pay anything in India?

Please share your experience.

Thanks in Advance.
MS

sant
Member since: Apr 07

Posts: 352
Location:
Post ID: #PID

Posted on: 28-02-12 16:04:27

Quote:
Originally posted by msdev

Hi All. I need your advise regarding buying property in India.

I am a Canadian citizen but I may go back to India after some time to take care of my parents. So I am planning to buy a home now.

I am planning to take a bank loan from India as a NRI now so that I can move after I pay it off.

1) So what are the advantages or disadvantages of such an investment in India.
2) Is there any way I can take loan from Canada instead of India. It looks like it is expensive to take a bank loan from India. Interest looks like 11% and other bank fees.
3) How about the tax? Do I have to show it in Canada or do I have to pay anything in India?

Please share your experience.

Thanks in Advance.
MS

You can borrow from your Line of credit in canada and pay it as you can and take the rest of the loan amount from india depending on your situation .

as LOC from canada should have good interest rate than loan from india and you have to pay in CAD ( the currency you are earning ) .

msdev
Member since: Nov 09

Posts: 36
Location:
Post ID: #PID

Posted on: 28-02-12 17:17:42

Thanks Ashesfc and Sant.

What do you mean by line of credit? is it the credit card limit. Yes I have it but how can I cash it.

What about the tax in canada or india

Pramod Chopra
Member since: Sep 03

Posts: 1284
Location: Pickering, ON
Post ID: #PID

Posted on: 28-02-12 17:45:30

Quote:
Originally posted by msdev

Thanks Ashesfc and Sant.

What do you mean by line of credit? is it the credit card limit. Yes I have it but how can I cash it.

What about the tax in canada or india

What they are referring is about HOME EQUITY LINE OF CREDIT because that is generally available at a lower rate than any other personal line of credit or Credit Card Limit (which is generally much less).

So, if you have a house and have built up equity then you can apply for a HELOC (Home Equity Line of Credit) and borrow money from the HELOC to buy the house in India from those funds so that you do not have to pay high interest rate there. Once you buy the house and if it generates income by way of rent, you can declare that income here and write off HELOC interest costs. You may want to consult a mortgage professional or an accountant who know about this stuff.

-----------------------------------------------------------------

Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

msdev
Member since: Nov 09

Posts: 36
Location:
Post ID: #PID

Posted on: 29-02-12 07:00:20

Thanks pramodji. I got it now.

msdev
Member since: Nov 09

Posts: 36
Location:
Post ID: #PID

Posted on: 29-02-12 17:26:49

Thanks asheddc

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