Posts Tagged ‘gold’

The Best NRI Investments

October 25, 2012

It has long been debated about what is the best NRI investment. Is it gold, or is it real estate? Like with all things in life, there are differing views. While experts might suggest going with an easier & safer option like Gold; my own view is that one should go in for property instead of gold.

Let me explain some simple reasons I have:

Gold may be easy to buy with many online services and may be a safe option to invest in because it will only appreciate. But so will property. The Indian government has now made it easier for NRIs to reduce the paperwork, the red tape, and the formalities. That, combined with more and more builders and real estate developers making NRI-friendly projects where plans, payment schedules etc are tailor-made for NRIs is all making property just as compelling an investment choice as gold.
Now let us examine the safety of a gold investment vs. that of property. Again, I admit that experts say Gold is safer, and there is probably some truth in it too. But property, if bought in consultation with your well informed relatives/family/friends advice back home in India; can be much more rewarding as a return of investment, and in terms of appreciation than gold. By studying the market carefully and taking the help of a good realtor, an NRI can really get into some extremely lucrative propositions.
My last reason is personally the most important one. NRIs like me miss India. It’s as plain and simple as that. So to me, buying property in India, especially if it is in the same city as my family, or in an area where I intend to live, or in a place that I grew up; becomes the single most emotionally satisfying & fulfilling decision. And the intangible fulfilment of that emotion just cannot be measured in monetary terms. It is invaluable!

Add to that the fact that you are investing in what will in all likelihood be a sure shot good-investment; to me, there remains no debate – I would buy property over gold, any day.


Weakening of the Indian Rupee

June 25, 2012

The Indian National Rupee has seen somewhat of a record slide in the past couple of months. From trading at around the Rs. 45 to the USD mark, it has slipped to the Rs. 55 to $1 mark. What does this mean? It means big benefits for NRIs like myself. How? Simply because we are getting much more bang for our buck. Any transfers or investments to and in India right now have suddenly become much more lucrative.

Let me give you a quick example. I used to transfer around 1000 US dollars to my parents in Chennai each month. Our calculation was based on their requirement of approximately Rs. 45000 per month. Now, with the rupee having gone down in value, the same 1000 dollars gets them 10,000 rupees more.

There is in fact so much more value to be sought right now, with the current slowdown globally, and the weak rupee in an otherwise resurgent Indian market, that not only is it the right time to remit money, but also to do bigger deals. It is only natural that the larger the sum of money one is spending/investing, the better value one gets. Add to the already low rupee rate, it’s the absolute ideal investment environment in India, especially from an NRI’s point of view. With a cash crunch in the Indian market, projects are stalled and wanting for investments. And all this put together, makes it the perfect time to act and invest for long term and earn rich dividends.

1. Investments in Real Estate are very highly recommended.

2. Investments in the Gold and Silver markets are can fetch very good value right now.

3. And as far as remittances go, it’s a good time to make remittances in bulk, so that you and your loved ones can enjoy the currently low trading value of the rupee, which may not stay for too much longer.

If you are an NRI like me, I would sincerely advice you to take advantage of the many benefits of the weak rupee right away!

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