US dream remains 'realty' for most Indians
For Suresh Alluri, who lives in New Jersey and is from an IT background, buying a home gave him a feeling of settling down. “When I came to the US 10 years ago, I wanted to buy a house, but was not sure if I would settle here. Since then, I got married and had two children. Buying my own home became the need of the hour.”
Sridhar Srinivasan, who bought his home 16 years ago in Connecticut, says he did so because he planned to stay in the US despite not having a green card. “The situation hasn’t changed even now among Indians,” he says. Besides the ‘settler’ sentiment, most Telugu customers say their need to buy a home is rooted in their Indian upbringing, which makes one want to “invest and grow”. Srinivasan says those who bought realty for investment are reaping the profits now in a sellers’ market. “A friend moving out from Connecticut to Seattle sold his house in a year. This despite it being a million dollar home!” he said.
Padma Sonti, who owns Padma Sonti Homes with Keller Williams Realty, and does business in the Greater Boston[4] Area says, investing in US realty is still a great option. “I believe that real estate is the single investment channel where there is no concept of total loss.”
Indians among top 5 buyers
India is among the top five countries of origin for homebuyers in the US, according to a 2018 report by the US-based National Association of Realtors (NAR). Buyers from China top the list with purchases worth $30.4 billion, followed by Canada with purchases worth $10 billion, UK at $7.3 billion, India at $7.2 billion and Mexico with $4.2 billion. The NAR report: ‘Profile of International Transactions in US Residential Real Estate 2018’ covers the period from April 2017 to March 2018. The report surveyed over 1.5 lakh stakeholders.
Mortgages help
The NAR report suggested that buyers from India purchase primary residences after taking mortgages from US sources. This is not as much the case with Chinese, Canadian or UK buyers.
Experts suggest the reason behind this is because interest rates in the US are very low. Realtor Padma Sonti says, “historically lowinterest rates have helped more people buy real estate than before.” She says, “A buyer can purchase a home with 5% down payment and get a mortgage for the 95% at 4.5%-5%. This is a no brainer for most people as opposed to paying thousands in rent.”
Sonti adds that “Indians also have good credit history as they are highly educated with good jobs. Most banks line up to give them loans for this very reason.”
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References
- ^ American Dream (timesofindia.indiatimes.com)
- ^ Telangana (timesofindia.indiatimes.com)
- ^ Connecticut (timesofindia.indiatimes.com)
- ^ Greater Boston (timesofindia.indiatimes.com)
from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News http://bit.ly/2ZCPwuv
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