-->
By Rajkamal Rao
One of the biggest luxuries of even a middle class family in the US is the size of its home. An average US household offers more living square footage than that of any other nation on earth. Given that the Indian ethnic community is amongst the wealthiest in the US, single-family homes owned by diaspora Indians are often much larger than average. A room for each additional resident in the home (other than the parents) is the norm. Additional rooms are available for a home office and a guest. These homes generally come with a spacious yard where kids can play safely, the classic American lawn, and at least a 2-car garage (which can be partly used for storage). Generous government lending programs, supported by extremely low interest rates, make owning a home natural and affordable. As in the subsection on climate comfort, size and affordability of home are luxuries an Indian family can easily get used to and find difficult to give up.
The situation in India is the polar opposite. The Indian real estate market has been in a bubble for nearly 20 years - from the early 1990’s with a small course correction in the late 1990’s (during the Asian financial crisis). Home prices are expensive by US standards. Even if an Indian family were to sell its home in the US, it won’t be able to buy an equivalent home in India from the proceeds of the sale. There are exceptions, of course, and these are based upon where the US home is located, how long it has been owned and what city in India the family is migrating to. For example, an Indian family that owns a home for 20 years in California’s Bay Area or the New York metro area can probably trade up without cost to a bigger, nicer home in a second-tier Indian city (such as Bhopal or Ahmedabad). But if the family is migrating from the suburbs of Dallas, Houston, Chicago, Denver, Atlanta or Philadelphia to the major Indian metros, the returnee family is likely to have to make deep compromises regarding the size of home and also feel a substantial financial pinch to boot.
In India, upscale villa and apartment communities offer many benefits of the traditional US home. A workaround for the returnee family is to rent in these communities rather than buy. In general, renting in India is much cheaper than buying. Housing is such an important topic that we devote a separate section to it.
A popular high-rise apartment complex in Bangalore that offers many comforts including tennis courts, swimming pools, underground parking, 24x7 security, unlimited power and water and a sports club in the enclave is beyond the reach of most Indian families. A 2,400 square foot flat on the 14th floor of this building lists for about INR 2.5 crore (about $450,000).
Some returning families prefer villa communities with manicured lawns and a driveway. A 2,200 square foot villa in the Electronic City area of Bangalore on a 2,400 square foot plot sells for INR 1.7 -2.0 crore ($350,000 - $400,000). Most villas here are 6-8 years old.
By Rajkamal Rao
Go back to Comparing Life US v. India
One of the biggest luxuries of even a middle class family in the US is the size of its home. An average US household offers more living square footage than that of any other nation on earth. Given that the Indian ethnic community is amongst the wealthiest in the US, single-family homes owned by diaspora Indians are often much larger than average. A room for each additional resident in the home (other than the parents) is the norm. Additional rooms are available for a home office and a guest. These homes generally come with a spacious yard where kids can play safely, the classic American lawn, and at least a 2-car garage (which can be partly used for storage). Generous government lending programs, supported by extremely low interest rates, make owning a home natural and affordable. As in the subsection on climate comfort, size and affordability of home are luxuries an Indian family can easily get used to and find difficult to give up.
In India, upscale villa and apartment communities offer many benefits of the traditional US home. A workaround for the returnee family is to rent in these communities rather than buy. In general, renting in India is much cheaper than buying. Housing is such an important topic that we devote a separate section to it.
A popular high-rise apartment complex in Bangalore that offers many comforts including tennis courts, swimming pools, underground parking, 24x7 security, unlimited power and water and a sports club in the enclave is beyond the reach of most Indian families. A 2,400 square foot flat on the 14th floor of this building lists for about INR 2.5 crore (about $450,000).
Some returning families prefer villa communities with manicured lawns and a driveway. A 2,200 square foot villa in the Electronic City area of Bangalore on a 2,400 square foot plot sells for INR 1.7 -2.0 crore ($350,000 - $400,000). Most villas here are 6-8 years old.
No comments:
Post a Comment
Thank you for your note. Please consider signing up for email or RSS updates on our home page www.relocationtoindia.com