Moving from NYC to Delhi? Places You Can Invest In With A Salary of $80,000 Per Annum

Planning to move from New York to Delhi NCR has never been more advantageous in terms of NRI investment in real estate. While real estate prices around the world are sinking, it is one of the biggest emerging sectors in India.

Nitin Kamboj, a friend who has been living in New York for the past 15 years, recently called me seeking advice. Nitin, 35, works in an NYC-based MNC that provides corporate IT solutions and has an office in Noida. In three months, Nitin will arrive in Delhi to take charge of a division in the Noida office for a remuneration of $80,000 per annu, and will stay in India for 10 years. Nitin wanted to weigh his options before making the move and was particularly interested in residential alternatives.

Perfect opportunity for NRIs

Delhi's real estate is turning into a very lucrative investment opportunity with the value of the Indian rupee falling against the US dollar. NRIs can take loans from banks using an NRI account. As per norms set by the Reserve Bank of India, any financial institution can fund up to 80% of the property's value and NRIs are eligible to own both commercial and residential properties in India.

Apartment on rent not a good idea

Nitin wanted to maintain his New Yorker lifestyle, so we started by looking up places to rent or lease in south Delhi. Within minutes, we figured out that he would be losing money if he chose to move into a 3 or 4 BHK apartment in Delhi in localities like Greater Kailash II, Defence Colony and Saket. The average rent for apartments in these localities is in the range of Rs 50,000 to Rs one lakh per month. Nitin would get no returns if he opted for a rent or lease agreement.

Buying a resale apartment in Delhi yields relatively low returns

Old projects in Delhi's posh localities have already reached their peak value. If Nitin were to buy a 3 or 4 BHK apartment in south Delhi, his total cost would come to about Rs 2.5-3 crore. His EMIs would amount to more than Rs 3 lakh per month, which is more than half his monthly income. Over a period of 10 years, the value of the property would double. This looked like a viable option, but we decided to look further.

Buying upcoming flats for sale in Delhi NCR is the best option

Several upcoming projects in Delhi NCR are specifically meant for NRI investment in India. Many of these are located in Noida and Gurgaon and boast of excellent living facilities ranging from in-house shopping complexes and malls to parks and gardens, from clubs and gyms to multiplexes, from centrally located banks and hospitals to 24-hour power back-up and running water. Upcoming flats for sale in Delhi are also conveniently close to major business hubs in Noida and Gurgaon and well connected to the airport.

The figures add up to big profits

Since Nitin's office is in Noida, this would be a big advantage. The average price for a 3 to 4BHK in Noida or Gurgaon is about Rs 1.5 crore. Not only will it be easier to get a loan, Nitin's EMIs would amount to Rs 1.5-2 lakh a month, which he can afford very comfortably. He would have about Rs 2 lakh at his disposal every month, which would be more than enough to maintain a fairly luxurious lifestyle and still have significant monthly savings. Moreover, Nitin would not have to wait for 10 years to double his investment. These hot properties will most likely attain their peak value with the next five years. The returns Nitin can expect from investing in a hot property in Delhi NCR within five years would be exponentially more than what he could expect by investing the same amount in a resale apartment in Delhi.

That done, Nitin could heave a sigh of relief, knowing that he had quite a few investment options that would give him great returns.