Indian Immigrants Buying a Lot of US Real Estate

Biggest Buyers In Real Estate Industry

Indian Buyers In Real Estate Industry

During the last one year that is till March 2017, it has been found that Indians are the major and largest depositors in the real estate industry. The biggest buyers are Chinese Nationals. They have purchased real estate worth $31.7 billion during the same period. The majority of buyers from Mexico, China and India are found to be working and settled in the United States.

Supported by mortgage finance, real estate properties are easily purchased to use as a residence or for their child who is studying in the United States. Indians had invested around $6.1 billion in the real estate from April 2015 to March 2016. They have also occupied the third position in the biggest real estate buyers list.  But still, due to investments by other nationalities has pushed Indians to the fifth position for the year 2015-2016.

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majority of people are residents of US in real estate industryIt has also been found that the majority of buyers are residents of the United States. About one-third of Chinese purchased bought residential building in California. Indians do not seem to focus on the states. They mainly purchased property on the location they are presently working. Kentucky, Massachusetts, Texas, New Jersey, and California are top destinations and more than two out of five Indians bought in other states.

Indians always give first importance to real estate investments. According to Gaurav Mashruwala who is the founder of – real estate is immovable, illiquid, capital guzzler and indivisible. It is challenging and expensive to acquire, liquidate, maintain and give.  

Different Scenarios To Look Into

Capital guzzler: Several times, a real estate property would consist of about 70 to 80% of the customer’s portfolio. It is not recommended to consider real estate if this is the scenario.

Careful while investing in real estate

Illiquid: It is challenging to settle the real estate. If you wish to choose real estate for the sake of investment, you need to be careful and analyze liquid assets or substantial liquidity meets other financial contingency and goals. For more info, about pros and cons of investing in real estate.

Immovable: No matter, what the client thinks, real estate is not recommended if they could not guarantee personal maintenance and upkeep. They may show interest at the beginning stage but year after year, small problems such as water leakage, property tax, pigeon nest, and others will not be taken care of and it has chances to damage.  It is recommended to invest only if you have good accessibility and sufficient time to maintain. 

Indivisible: It is not possible to sell the property when you are in urgent need of money.

Moreover, selling real estate and making sure that everything is appropriately transferred involves a complicated process. Real estate easily attracts a large group of clients. it is highly preferred as the buyers can feel and touch. Several investors miss calculating the returns when they are investing in the property. They just get impressed with the appearance of the building and think it has the capacity to fetch good returns.

After retirement to buy a second house as investing

Several people have this common retirement plan- that is to invest their hard earned money in a second home. Lifestyle aspirations are almost like one-way traffic. It is common to see clients who keep searching for better and bigger houses. While you are investing in real estate, you need to think about ways to optimize returns and not to maximize. Real estate is a close and emotional investment. Most prefer to live in the house they have purchased. It gives them a feeling of security when residing in own home.

A leading architect firm confirmed that they are getting several outsourced orders. They support purchasing a house for living purposes. Most people miss to consider other expenses like education, retirement, etc. and end up working on a goal of purchasing a house. It is not possible for all people to purchase a house at the start of their career. It is necessary to calculate the EMIs and your monthly package to determine whether it is possible to handle the loan.

Consider Before You Sign Up

Nowadays, it is expensive to purchase a home. Though there are several attractive offers like purchasing a home with minimum or no down payment, it is still your burden to repay it back with the hefty interest amount. It is a long time commitment that should be considered twice or thrice before signing up.

If you have plans to repay a loan from the income that is coming from both –husband and wife, there are chances to feel challenging to repay when one leaves the job to raise a child.  

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