Indians look across the Atlantic to buy US property at fire-sale prices

NEW YORK: A second address in the US no longer appears to be the sole precinct of Indian business barons and Bollywood stars. More Indians are casting an eye at buying homes here as the US housing downturn promises bargain-basement prices.

At face value, anybody buying a new home in America can do so at a price 10.4 per cent lower than a year ago, reported The Sunday Times. But there is a rider; the figures are not adjusted for size and type of property — but nobody doubts prices are falling. Emily James, broker and owner of Remax Jaguar, which specialises in Brooklyn and New York real estate, told DNA that the Average Joe-Schmoe was skittish, but this hadn’t stopped Indian or foreign buyers from investing.

“It is true prices are dropping. There are distress sales. But one man’s loss is another man’s gain — there are opportunities. In fact, foreign buyers — Indians from London, Mumbai and people from Trinidad — are ready to close deals. I hear realtors saying they deal with people in India,” said James.

According to her, the housing market is throwing up steals. A one-bedroom condominium in Brooklyn overlooking Prospect Park has been marked down to $6,00,000 (Rs 2.4 crore). “The banks are looking at a 10 per cent down payment for this condo. The buyer needs to put up $60,000 (Rs 24 lakh) for a 30-year fixed rate mortgage,” said James. India has relaxed its norms for overseas investments and Indians can now remit $1,00,000 every year to the US, up from $50,000 earlier. A couple can pool finances to put down $2,00,000 towards a US home.

“This allows Indians to make kosher investments. Manhattan and San Francisco are pricey but the US is cheap compared to Mumbai and Delhi,” said a Mumbai rice exporter, who did not wish to be named. He said he used the weak US housing market to buy a townhouse in Florida.

“I bought a three-bedroom townhouse in Orlando, Florida for $1,90,000. It is a good investment. I also wanted a base here as my son studies in the US. Home owners at Regal Palms can use the club house which has a restaurant, bar and games room. The grounds have heated pools, sun decks and tennis courts. I would never get anything like this for $1,90,000 in Mumbai,” he said.

Nam Menon, who has an eye for Manhattan real estate and owns a stunningly beautiful house in the same apartment complex as Hollywood star Helen Hunt in Manhattan’s trendy Tribeca, pointed to new opportunities; “People who are sitting in the flow of these things say there are some very interesting opportunities coming up on the commercial real estate side.”

However, if you prefer a pretty spread to a dull warehouse then Montana is tough to beat. Clearwater River Realty, Inc has a current listing for a tranquil 10-acre parcel in Blackfoot Valley in Montana for $2,09,900. You will be presiding over your own trout-filled river and plenty of wildlife including deer and moose. Industry experts say the credit crunch will eventually come to pass and US property prices should climb by 2009.