Why don't many Indians adapt to US in terms of investments?

[quickgun_murugun]

5 hours ago, krishnaaa said:

Agree that stocks isn't everyone's cup of tea.....But ETFs are.

It actually is very simple.....10 times more simpler than Real Estate.

SnP500 has always went up long term. Average returns is 8% which is equivalent to 17% in India.

You can't say the same about Real Estate. It barely beat inflation long term.

And in future, real estate values are going to drop like a rock due to technology.

Robotics is going to drastically reduce construction costs and radically change home designs.

Closed Kitchen models are outdated now, next people would like homes with solar roofs.

We are in technology age, things are rapidly changing....people won't be able to keep up with traditional real estate. Better to invest in companies.

Some stuff is possible 

[Ryzen_renoir]

1 minute ago, quickgun_murugun said:

Ippudu anni online lo organized chesadu kada @kcr

Boss kabja , litigation ni stop cheyadaniki clauses anee alagey unnayi . 

The main issue is the courts , it is beyond Dora's scope to change these stupid laws . 

Litigations will take decades to resolve even though the litigant has no proof at all . Infact I would go far to say many judges are on the payroll of this litigation batch . 

 

[dasara_bullodu1]

Dude people don't buy houses to make money on real estate .. that's just one category. House is not just an investment, it handles tons of emotional insecurities. There are people here who live 10 yrs on rent and fed up with living like second rate citizen under paying to some guy, and don't forgot almost every guy here have American kids and parent will want to secure their future. No one know if dollar will hold value but house will give all the benefits of comfort for even 80 yrs. Being said that US is a tricky country and every investment depends on their own lifestyle. The biggest problem I see in US is people are acting like the same gorre mentality. One recession and all these gorres will wipe out like flash flood.

[LadiesTailor]

8 hours ago, krishnaaa said:

India and US are 2 completely different countries and are on completely different timelines.

Real Estate works well in India as India is a developing nation with lot population growth.

Due to less infra to take care of, you pay very less in property taxes and the labor is also very cheap.

Also, everyone invests in RE in India

 

Coming to USA, RE doesn't work in most cases if you calculate all the expenses due to property taxes, labor, upkeep, regulations etc.

When you are in Rome , be a Roman.

Stock Market is King in USA. But Indians still run behind real estate in USA.

Just do some good research and you should be able to find many undervalued stocks to invest.

If that is too much work, just invest in vanguard or Fidelity ETFs.

If that sounds complicated too, just transfer money to betterment and the robo advisor would invest in low cost ETFs......and then go chill have some beer.

 

Mana vallu running blindly behind RE in USA chusi thattukolekapothunna.....maarandi sami

 

Nuvvu edagali pardhu... ask those uncles who are investing in US real estate they might have a million dollar portfolio if not half million.. don’t underestimate desi minds 😉

[krishnaaa]

1 hour ago, dasara_bullodu1 said:

Dude people don't buy houses to make money on real estate .. that's just one category. House is not just an investment, it handles tons of emotional insecurities. There are people here who live 10 yrs on rent and fed up with living like second rate citizen under paying to some guy, and don't forgot almost every guy here have American kids and parent will want to secure their future. No one know if dollar will hold value but house will give all the benefits of comfort for even 80 yrs. Being said that US is a tricky country and every investment depends on their own lifestyle. The biggest problem I see in US is people are acting like the same gorre mentality. One recession and all these gorres will wipe out like flash flood.

I repeat, House is NOT an investment and shouldn't be treated as such.

When you buy a house, you buy it for comfort and that is fine. I just want to set the expectations right.

[krishnaaa]

1 hour ago, LadiesTailor said:

Nuvvu edagali pardhu... ask those uncles who are investing in US real estate they might have a million dollar portfolio if not half million.. don’t underestimate desi minds 😉

 

I am talking about those who don't have million dollar portfolio and buy expensive houses thinking of it as an investment like in India.

[Varshini2020]

We have been investing in US and India for the past 20 years and were  comparing the returns. Have an IRA from 2006 which gave 9% -10% return annually which made it double every 7 years. By 2020, it is 4 times our initial investment without any additions/deductions. Investments were different funds without much involvement at all.

Our indian investments made prior to 2005 did outdo these returns probably giving about 40 times return. Whatever invested in 2006 did go up 6 times but that still falls short of US returns considering the exchange rate was 42-44 at that time and now 72-75 now.

Couple properties we own now are like 1 lakh per sq yard, if stock market continues to give about 9% return and dollar appreciates at the same rate, probably the rate should go to 4 lakh per sq yard in less than 10 years to be ahead.

I might be missing something, but don't see much value holding or even worse buying at these rates in Hyderabad unless you can discover the next big area which will be speculative buy rather than gated communities/flats/mature markets.

[LadiesTailor]

1 hour ago, krishnaaa said:

 

I am talking about those who don't have million dollar portfolio and buy expensive houses thinking of it as an investment like in India.

Yeah Adi risk factor... hope people who are buying million dollar homes have some backup idea... you are right, housing market is subject to stock market and it will crash soon... 

[sunnam]

33 minutes ago, Varshini2020 said:

We have been investing in US and India for the past 20 years and were  comparing the returns. Have an IRA from 2006 which gave 9% -10% return annually which made it double every 7 years. By 2020, it is 4 times our initial investment without any additions/deductions. Investments were different funds without much involvement at all.

Our indian investments made prior to 2005 did outdo these returns probably giving about 40 times return. Whatever invested in 2006 did go up 6 times but that still falls short of US returns considering the exchange rate was 42-44 at that time and now 72-75 now.

Couple properties we own now are like 1 lakh per sq yard, if stock market continues to give about 9% return and dollar appreciates at the same rate, probably the rate should go to 4 lakh per sq yard in less than 10 years to be ahead.

I might be missing something, but don't see much value holding or even worse buying at these rates in Hyderabad unless you can discover the next big area which will be speculative buy rather than gated communities/flats/mature markets.

Those prior 2008 investments are very good decision. But now those Real Estate Returns will not come again if you invest now. When modi done demonetisation, public diverted funds to Lands purchases. So 2016 onwards rates peaked and most lands became very expensive already like suburbs lo kuda 1 acre is 5 Cr going in Hyd. GST and Registration Charges are killing the demand now for new homes. Middle class are now only buying second sales now if they need. Not much in RE now. Hyd is too much hyped. 

[Shameless]

10 hours ago, krishnaaa said:

India and US are 2 completely different countries and are on completely different timelines.

Real Estate works well in India as India is a developing nation with lot population growth.

Due to less infra to take care of, you pay very less in property taxes and the labor is also very cheap.

Also, everyone invests in RE in India

 

Coming to USA, RE doesn't work in most cases if you calculate all the expenses due to property taxes, labor, upkeep, regulations etc.

When you are in Rome , be a Roman.

Stock Market is King in USA. But Indians still run behind real estate in USA.

Just do some good research and you should be able to find many undervalued stocks to invest.

If that is too much work, just invest in vanguard or Fidelity ETFs.

If that sounds complicated too, just transfer money to betterment and the robo advisor would invest in low cost ETFs......and then go chill have some beer.

 

Mana vallu running blindly behind RE in USA chusi thattukolekapothunna.....maarandi sami

 

India is a developing nation - mana chinnappati nundi vintune unnam and future lo mana pillalu kuda same adhe vintaru....India lo black money chala circulate avthundhi compared to USA

 

Coming to USA, RE doesn't work in most cases if you calculate all the expenses due to property taxes, labor, upkeep, regulations etc. - India lo kuda idhi pani cheyadhu andharu legal ga and ethical ga pani chesthe..

coming to RE in USA, nenu 2 yearsback illu konnanu and the whole process was so smooth...the seller was even clear of all the commissions she was paying and everything was white in front of us....the closing was complete in 2 hours without any issues and received all documents without any troubles unlike India for my education loan 10 years ago, the banks demanded for so many documents that I have never heard of...

My whole home buying process from seeing the house and moving into the house was done in less than 30 days (I didn't even have bank approval letter before we saw the house...my bank process started after we made a deal on the house).

 

naaku thelisina oka ABCD, same age as mine, does flipping houses and he owns at least 100 houses in my county...he buys foreclosed houses anywhere between $20,000 and $70,000, fixes them, and sells for at least $200,000 to 400,000.  My wife's uncle works for him as a contractor and he does demolition and drywall stuff including kitchen remodeling and basement remodeling.... 

 

[krishnaaa]

1 hour ago, Shameless said:

India is a developing nation - mana chinnappati nundi vintune unnam and future lo mana pillalu kuda same adhe vintaru....India lo black money chala circulate avthundhi compared to USA

 

Coming to USA, RE doesn't work in most cases if you calculate all the expenses due to property taxes, labor, upkeep, regulations etc. - India lo kuda idhi pani cheyadhu andharu legal ga and ethical ga pani chesthe..

coming to RE in USA, nenu 2 yearsback illu konnanu and the whole process was so smooth...the seller was even clear of all the commissions she was paying and everything was white in front of us....the closing was complete in 2 hours without any issues and received all documents without any troubles unlike India for my education loan 10 years ago, the banks demanded for so many documents that I have never heard of...

My whole home buying process from seeing the house and moving into the house was done in less than 30 days (I didn't even have bank approval letter before we saw the house...my bank process started after we made a deal on the house).

 

naaku thelisina oka ABCD, same age as mine, does flipping houses and he owns at least 100 houses in my county...he buys foreclosed houses anywhere between $20,000 and $70,000, fixes them, and sells for at least $200,000 to 400,000.  My wife's uncle works for him as a contractor and he does demolition and drywall stuff including kitchen remodeling and basement remodeling.... 

 

 

Business and Investments are 2 completely different things.

We are talking about investment here.

[Varshini2020]

the most valued resource is service and creativity in US. Yes, if someone can take a dump and make it good definitely they will see most returns. But it doesn't come under plain investment.

[Shameless]

25 minutes ago, krishnaaa said:

 

Business and Investments are 2 completely different things.

We are talking about investment here.

I am not sure what your point exactly is since you were talking about RE here in the US compared to India...my point was whether its business or investment, there are fewer headaches here when compared to India...and the ease of investing or running a business is incomparable... 

[krishnaaa]

3 hours ago, Shameless said:

I am not sure what your point exactly is since you were talking about RE here in the US compared to India...my point was whether its business or investment, there are fewer headaches here when compared to India...and the ease of investing or running a business is incomparable... 

Business means that you can become a billionaire selling peanuts.

Doesn't mean that Peanuts are good investments.

I made money when I bought and sold my car.....doesn't mean that cars are good investments.

[Shameless]

32 minutes ago, krishnaaa said:

Business means that you can become a billionaire selling peanuts.

Doesn't mean that Peanuts are good investments.

I made money when I bought and sold my car.....doesn't mean that cars are good investments.

got your point...US is a good place to invest bro...just need right connections and relations...most of my wife's family members are illegals and some of them saved up some money and invested, and making good money here and building houses in mexico...