More Indians are eyeing homes here as the US housing downturn throws up bargains.
Dreaming of a sunny apartment in Battery Park City with a stunning view of the Hudson River and the Statue of Liberty? Or an East Village town house in a cul-de-sac of Georgian Revival brick houses? Or maybe just a comfy place to call your own?
Who doesn’t? But for many, these dreams have been out of reach. Till now, that is. A second address in the US no longer appears to be the preserve of business barons and Hindi film stars. More Indians are eyeing homes here as the US housing downturn throws up bargains.
Jaswant Lalwani of the Corcoran Group, New York’s largest real estate firm in the residential sphere, told DNA he had been getting more inquiries from India. He said Manhattan offered sweet deals for Indians priced out of South Mumbai, London, and Tokyo.
Anyone buying a home in Manhattan can now do so at a price 20 to 25% lower than a year ago. “The price cuts in New York from peak prices a year ago make it very attractive,” said Lalwani. “New York is now cheaper than South Mumbai, London, Hong Kong, Moscow and Tokyo.
“There is a significant uptick in interest from Indians. The entry barrier for a large one-bedroom Manhattan condo is Rs3 crore. What can you buy in South Mumbai for Rs3 crore? In cities like Houston, Phoenix, Vegas, Los Angeles, and Miami, you can get large apartments for $150,000 (Rs75 lakh).”
Relaxed norms are a bonus
A second address in the US no longer appears to be the preserve of business barons and Hindi film stars. More Indians are eyeing homes here as the US housing downturn throws up bargains.
Michael Simonsen, co-founder and chief of Altos Research, which tracks real estate, said: “Low interest rates and desperate sellers have coincided to create a kind of floor where well-financed buyers are picking up bargains.”
Emily James, owner of Remax Jaguar, which specialises in Brooklyn real estate, told DNA the Average Joe Schmoe was skittish, but this had not stopped foreign buyers from snapping up bargains. A one-bed condo in Brooklyn overlooking Prospect Park has been marked down to $600,000 (Rs3 crore). “The banks are looking at a 10% down payment. The buyer needs to put up $60,000 (Rs30 lakh) for a 30-year fixed rate mortgage,” James said.
India has relaxed norms for overseas investments so Indians can remit $100,000 a year to the US, up from $50,000 earlier. A couple can pool finances to put down $200,000 towards a US home. According to brokers, Indians like doing all-cash deals, but enjoy full access to mortgages. Foreigners can buy US condos, but cooperative-owned buildings can only sell units to US citizens and green-card holders. That still leaves enough residential property up for grabs.
One of the few places in New York with two-bedroom apartments for $180,000 (Rs90 lakh), Flatbush in central Brooklyn has the allure of affordability, which worked well in drawing H Patel from Gujarat five months ago.
“My daughter studies at New York University so we just wanted a base in the US,” said Patel.
A Mumbai rice exporter, who did not want to named, said he used the market weakness to buy a house in Florida; “I bought a three-bedroom house at Regal Palms in Orlando, Florida, for $190,000. It’s great — we can use the clubhouse. The grounds have heated pools, sun decks, and tennis courts. I wouldn’t get a deal like this in Mumbai.”
If you prefer a pretty spread to a city flat then ‘Brokeback Mountain’ country is tough to beat. Clearwater Montana Properties Inc has a listing for a 9.81-acre parcel in Philipsburg, Montana, for $220,000. You will be presiding over your own hunting cabin, trout-filled creek, and wildlife, including deer and elk.
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