Advantage and disadvantage of offshore property investing in real estate
by Mejo John
The most important thing is that you realize that you have to do something to secure your future. Property offshore real estate investing refers to a huge variety of investment strategies, which capitalized on investor's home country. Investing offshore just means investing in a place other than where you live. The key to building a portfolio of offshore properties is double: education, and emotional intelligence. Its little wonders that so many people today are turning to offshore property as their primary investment to funding their pension, retirement or to draw an income from it.
Investing property in offshore companies could be very money-spinning with many of the offshore investment openings being things like hotels in visitor locations and malls in high density population centers. The most excellent feature is it offers a very high return on investment if played properly. Following are the advantage and disadvantage of offshore real estate investing.
Advantage of property offshore real estate investing
* Tax reduction: Many of offshore investment countries today offer tax reduction to foreign investor. According to U.S Internal Revenue Service (IRS) The citizen of U.S are now taxed on their global income. As result U.S people could as well go for the offshore property real estate investing.
* Confidentiality: Many offshore property jurisdictions provide you with additional benefit of having the legislation secret. This confidentiality does not mean something to hide; it is just some high profile investors might like to leak out on the shares where they are investing their property. Hence this is another added benefit of investing in offshore property real estate.
Disadvantage of offshore real estate investing
* Tax laws are now tightening: One cannot afford to avoid the tax agencies like IRS. It becomes extremely difficult to invest in offshore property real estate investing due to tax problem.
* High Cost: Offshore is actually not cheap to be set up. Investing in offshore property real estate investing steeps you in many type of fees like legal fees, corporate fees, finance charge etc. hence one require to think about all the aspect before he invest in offshore real estate.
Showing posts with label Chennai Real Estate. Show all posts
Showing posts with label Chennai Real Estate. Show all posts
Tuesday, February 24, 2009
Chennai Real Estate-its Consumer's Market
Chennai Real Estate-its Consumer's Market
by George Gonigal
Undergoing the period of correction for the past 6-months, Chennai real estate markets have finally started to stabilize, however the demand curve is still observed moving horizontally. As per industry reports, the city absorbed meager 13 per cent of the total supply of the residential space in the past quarter.
Chennai real estate received fresh additions of 3.4 million sq. ft of housing in the past quarter although a meager 0.47 million sq. ft of space was absorbed, studies point out.
Now that the prime banks like SBI, HDFC and ICICI have cut the interest rates on home loans, the markets are likely to catch up and real estate developers expect good time ahead this winter season.
Impact on prices
According to the Chennai based professionals, capital values in the residential real estate in Chennai had reached staggering levels that in fact were termed as unrealistic by buyers.
But now prices are almost down by 20 per cent, says R Ajay of Tirupati Real Estates. "But you cannot actually gauge that whether price corrections are spiking demand or not. Most of the new projects in the property markets of Chennai are actually making an oversupply and there is no junction between the volume of demand and supply," he adds.
Meanwhile, the prices of residential units in the sub-urban areas have moderated at the levels of Rs 2,500-4,000 per sq. ft, after peaking at Rs 5,000-Rs 6,000. The basic notion behind development of sub-urbs is generally low price range and if this factor escalates, there is no point people will consider buying properties in sub-urbs, Professor Raghu Aiyar commented.
Also, the investors who were expecting instant returns of 25-30 per cent on their property investment in Chennai are at tenterhooks, as the markets have been gradually shedding off all the speculative tendencies.
Outlook
It's consumer's market. Chennai Real Estate will add as many as 25,000 apartments in the next 12-24 months, from more than a dozen of townships alone and construction of standalone apartment buildings will further accumulate over the total additions.
In this scenario, the supply side would outstrip demand curve and of course, property sellers and developers have to downscale their margin expectations, say market analysts.
by George Gonigal
Undergoing the period of correction for the past 6-months, Chennai real estate markets have finally started to stabilize, however the demand curve is still observed moving horizontally. As per industry reports, the city absorbed meager 13 per cent of the total supply of the residential space in the past quarter.
Chennai real estate received fresh additions of 3.4 million sq. ft of housing in the past quarter although a meager 0.47 million sq. ft of space was absorbed, studies point out.
Now that the prime banks like SBI, HDFC and ICICI have cut the interest rates on home loans, the markets are likely to catch up and real estate developers expect good time ahead this winter season.
Impact on prices
According to the Chennai based professionals, capital values in the residential real estate in Chennai had reached staggering levels that in fact were termed as unrealistic by buyers.
But now prices are almost down by 20 per cent, says R Ajay of Tirupati Real Estates. "But you cannot actually gauge that whether price corrections are spiking demand or not. Most of the new projects in the property markets of Chennai are actually making an oversupply and there is no junction between the volume of demand and supply," he adds.
Meanwhile, the prices of residential units in the sub-urban areas have moderated at the levels of Rs 2,500-4,000 per sq. ft, after peaking at Rs 5,000-Rs 6,000. The basic notion behind development of sub-urbs is generally low price range and if this factor escalates, there is no point people will consider buying properties in sub-urbs, Professor Raghu Aiyar commented.
Also, the investors who were expecting instant returns of 25-30 per cent on their property investment in Chennai are at tenterhooks, as the markets have been gradually shedding off all the speculative tendencies.
Outlook
It's consumer's market. Chennai Real Estate will add as many as 25,000 apartments in the next 12-24 months, from more than a dozen of townships alone and construction of standalone apartment buildings will further accumulate over the total additions.
In this scenario, the supply side would outstrip demand curve and of course, property sellers and developers have to downscale their margin expectations, say market analysts.
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