Thanks Bhoothnath.....

Our property in Mumbai multiplied around 6times in 8yrs..... We have not rented it out.... And, the keys are with us..... So nobody looks after it..... We do however, keep in touch with the secretary of the building..... And he checks on our door from the outside.....

There are many options when investing in property..... And one must be familiar with the potential value of the property..... There is the residential and he commercial property....long term leasing can be done with an annual escalation clause..... There is a formula to work out the rent/deposit potential ..... But generally, it more or less covers the mortgage..... Moreover, by registering the rental agreement with the police, the risk is reduced.....Investor has to do his own research wrt interest, documentation, agent etc.....

I personally believe that if I have to invest.... Then real estate is the safest option..... I plan to buy another property in India ( if and when I have the money)..... I plan to pay for their education/down payment for their own homes -by selling the property invested for each of them..... We have investments in RESP and RRSP and TFSA..... But don't believe that they will be sufficient.....

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Originally posted by geetakhanna

Thanks Bhoothnath.....

Our property in Mumbai multiplied around 6times in 8yrs..... We have not rented it out.... And, the keys are with us..... So nobody looks after it..... We do however, keep in touch with the secretary of the building..... And he checks on our door from the outside.....

There are many options when investing in property..... And one must be familiar with the potential value of the property..... There is the residential and he commercial property....long term leasing can be done with an annual escalation clause..... There is a formula to work out the rent/deposit potential ..... But generally, it more or less covers the mortgage..... Moreover, by registering the rental agreement with the police, the risk is reduced.....Investor has to do his own research wrt interest, documentation, agent etc.....

I personally believe that if I have to invest.... Then real estate is the safest option..... I plan to buy another property in India ( if and when I have the money)..... I plan to pay for their education/down payment for their own homes -by selling the property invested for each of them..... We have investments in RESP and RRSP and TFSA..... But don't believe that they will be sufficient.....

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Yes Bhoothnath....8yrs ago property was much much cheaper.....But at that time, since we were younger and our salaries much lower.....it seemed to be too much....Our builder was good though....He gave us the flat in full white - which means we had 2 agreements - one for the basic value + 1 for the "add-ons" - totalling the flat value - and as paid for by the bank...We only had to pay for the stamp duty + the down payment (which was also too much for us then )

But then, the opener has $200k total to invest....So if he pays around $100k...For a property in India.....He should be able to get a great property....

Again, this is just one of the many suggestions that he wil receive.....At the end of the day - there are many variables to be considered by him....To buy a property in India - he would have to travel to India for atleast 3 months - to complete the househunting and paperwork....Which is difficult, if not impossible, for most people.....

Again, he might find it more suitable to buy both properties in Canada - which is geographically a more practical decision....

yes makes perfect sense. thanks for sharing. As you suggested, with $100K options are wide open...
1) pay off the house of 50 lacs in India..probably small 2 bedroom in cities like Mumbai.
2) Take the loan with 50 lacs as downpayment and may buy a property with 1 crore..again could be 2 bedrooms (bigger ones)
On both the above cases the safest option to lock the house and get the benefit of appreciation (compared to risk of renting it out)
3) pay 20% down towards investment property in Canada and buy 1 semi or 2 small towns worth 500K and see the mortgage paid off by greatfool community members at the same time see litttle appreciation as well.

so 10 years down the line $100K investment In India Vs in Canada:
India case 1(full payment): 6 times appreciation (if this continues): INR 3Crore
India case 2(50% payment):6 times appreciation: INR 5 Crore
India case 3(20% payment):6 times appreciation: INR 15 Crore

Canada (2 times appreciation) again if rally continues: $1Mil~5 Crore-$200K mortgage=$800K ~ INR 4 Crore.
Now the equation completely changes if the currency fluctuates singnificantly. e.g. 10 years back 1 CAD~INR 28
So the currency is already doubled here in Canada that probably takes the profit down by 50%.

Agreed that you can buy property in India with almost no down, but then the interest that you are paying on mortgage is much higher.
There are far too many variables involved than above simple calculation such as insterest rates, conversion rates, currency market, your flexiblity and connections, regulations, etc.
So although the benefit of buying property in India is much higher, investement here is also not bad option.
Both options are open and good.

I second that...

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Originally posted by bhootnath

Still the equation remains same..around 60-70% of that cash would towards the down payment of primary residence and remaing as investment propertie(s) may be 2 small houses or even a commercial property. Get your primary home debt-free asap let the investment properties remain debt ridden. yeah but after you have used all your RRSP, RESP and TFSA limits .

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