US-Iran deal further locked the bad times ahead for Canada. Recovery for Alberta oil looks gloomy. With NDP sealing the minimum wage in Alberta, the local economy there will sure take a hit. The reason, why Harper is making hue and cry about the deal. He needs an oust this coming elections.
Time for Canada to look for an alternate/diverse economy and sector - Services, Manufacturing (scarred by Chinese Factories already), Tourism, Lumber, High Tech, Agriculture should be boosted by all means. Exports to Asia must be given further incentives as well. Look beyond USofA should be the immediate need of the hour.
Albertans used to laugh at BC'ers and Ontarians a few years ago, but the tide appears to be turning on them. BC has a mixed economy and close cross border movement with Washington, and Ontario's Headquarters with a mixed of Service/Manufacturing (albeit less) don't look that gloomy. High immigration should help further.
As Chinese proverb goes, "May you live in interesting times." They sure are in the offing.
Quote:
Originally posted by febpreet
How does it work out if we open a savings account in India with the high interest rates than the one here in Canada? What are the Tax implications in Canada & India, and after tax would there be a considerable savings/interest earned?
What is your view on buying a piece of land in India instead of opening an NRE/NRO account? Which one has better yield? I believe another option could be to buy one-two bedroom apartment (India) and rent it out.
I am seriously thinking about taking whatever savings I have to India for a better yield/return. In Canada, it's been a $hi++y investment unless one bought a freehold detached place a couple of years ago.
Well I think instead of going through NRE/NRO route the better option is to invest in India based mutual funds and ETF which I am doing. There are couple of them which are good. Excel Mutual Funds and there is an ETF as well. The funds can be invested through TFSA/RRSP while investing through NRE/NRO channel will have no tax advantages. These funds invest money in INR in Indian equity markets. The fund appreciates or depreciates in value based on two factors currency rate and Indian equity markets. Going by what is happening, CAD has been depreciating and Indian stock market is good on long term basis. Regardless the returns are better from long term perspective. For eg the mutual fund has given 14% return YTD which is 6 months.
just update:
in NRO account : Interest earned in current financial year is fully repatriable (after deducting tax).
in NRE account : Funds in NRE account are fully & freely repatriable.
I just opened NRE/NRO account with ICICI and they advised me that if I want my money back in CAD than put your money to NRE account and do not put in NRO account because is not fully repartriable. because exchange rate, fees, deduct taxes, etc..
In NRE account your money will stay in CAD only and not in Indian rupees.
Regards
NRO account is in the Indian economy ...You can repatriate it as long as you can provide a satisfactory trail of the money coming from abroad .
NRE a/c is off shore ..still not entered Indian money market.
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Fido.
Quote:
Originally posted by RBO
just update:
in NRO account : Interest earned in current financial year is fully repatriable (after deducting tax).
in NRE account : Funds in NRE account are fully & freely repatriable.
I just opened NRE/NRO account with ICICI and they advised me that if I want my money back in CAD than put your money to NRE account and do not put in NRO account because is not fully repartriable. because exchange rate, fees, deduct taxes, etc..
In NRE account your money will stay in CAD only and not in Indian rupees.
Regards
Well I think instead of going through NRE/NRO route the better option is to invest in India based mutual funds and ETF which I am doing. There are couple of them which are good. Excel Mutual Funds and there is an ETF as well. The funds can be invested through TFSA/RRSP while investing through NRE/NRO channel will have no tax advantages. These funds invest money in INR in Indian equity markets. The fund appreciates or depreciates in value based on two factors currency rate and Indian equity markets. Going by what is happening, CAD has been depreciating and Indian stock market is good on long term basis. Regardless the returns are better from long term perspective. For eg the mutual fund has given 14% return YTD which is 6 months.
Indian stock market is just come from a correction and hence it is a good place to invest. The Greece crisis is over for now and the Iran deal is done.
When Iran floods the market with Oil, India will grow well as cost of crude is punishing India and once crude goes down, a lot of money will be spent on infrastructure.
I am quite sure that India will be hot hot hot destination for a 3-5 year perspective. Actually Canadian $ is pretty low now and hence you will not be able to get the currency advantage, though still Cdn $ still bound to be low when compared with Indian Rs.
So either invest in Indian equity or Indian MF or the red hot Canadian housing market. At this point I will be unable to comment about the apartments appriciation in India but plots (in outskirts) will continue to do well.
You have one more year wherein the housing prices (n Canada) will go upward. When the interest rates are bound to go up, then liquidate and have the money in cash.
Murali
Murali
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