India's Rich Eyes on Abroad Properties

Currently, overseas homes are available at bargain prices in places like Detroit (US) or Colombo. Apparently, these overseas properties are less costly than luxury homes in upscale Indian metros. Property investors are showing keen to these abroad property markets for their perceived value as these countries are indicating early signs of revival.

Moreover, the weak rupee has not deterred the affordability of these overseas homes. “Prime beachside property in Colombo sold for around 8,000 a square foot 18 months ago, (making it) more affordable than properties in Chennai,” said Om Ahuja, CEO of Residential Services at Jones Lang LaSalle India. In fact, with the weak rupee, investors can get better return on investment.

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Unlike India, most of the overseas property markets give higher rental incomes. Rental yields are more than 5 percent in places like Singapore, Dubai and UK followed by investor’s cash flow.

Besides, a liquid market and transparent property transactions are the extra enhancements. Places like Dubai, Cyprus, Singapore and Mauritius do no charge capital gains tax on the sale of the property. Other places like Portugal, Ireland, Malaysia, Cyprus and Bahamas give extended visa to attract foreign investors. High net worth individuals, who most of the time travels to other countries for business purpose prefer to make overseas property investments for personal use instead of spending money in hotels. Also there are rich parents who make foreign investments in university towns like U.S. or in UK for their children and to earn good rentals at the same time.