Invest in India instead of UK

Why invest in India rather than the UK

Why investing in India has become a better option

Invest in India instead of UKFrom PropVestment’s recent visit to India and the subsequent dealing and observations from the UK property market we have found a strong case to open the mind and change investment strategies and to invest in India

Breaking this into two arguments, one a basic economic one based on macro observations and trends, and then a more micro one with the current property climate and lending situation in the UK.

Why invest in India – Macro: Economics

Population: Indian population growing by around 16 million a year
This mean there is a continued demand for new housing. Furthermore the average household size is falling so this makes demand even greater.

Income & Growth: with over or close to double digit growth.
The growing affluence means upgrading housings, smaller family units, means demand is rising.
Gujarat has experienced double digit growth and shows no signs of slowing down with huge infrastructure projects. These include new cities like Dholera in an SIR (Special Investment Region) and SEZ (Special Enterprise Zone)

Indian government are spending to develop:

  • High-speed rail freight lines.
  • Power plants to supply an additional 4,000 megawatts.
  • Three new sea ports.
  • Six new airports.
  • 12 new industrial clusters, and more.

Increasing Indian middle class — 500 million and growing
Spending their newly-earned money, ramping up retail sales growth that should average 13% or more for the next several years. This means demand for houses and retail space ultimately increases too.

Overall the Indian property market is one of capital growth rather than rental yields. Basic economics of demand and supply states that with demand rising so much, prices will keep rising, therefore there is plenty of capital gains to be made.

Why invest in India -Micro: UK Property market vs India

UK Prices:
House prices remain very high as sellers do not accept the new market house price levels and are holding out. This results in a sale not happening so the roll over sale doesn’t happen and the market stagnates.
Further the high prices have out priced many first time buyers.

UK Lending:
Even though new products such as Helpful Start and other schemes to encourage lending have come on the market, lending is still very tight. The criteria has stopped many who would have previously got a mortgage, unable to do so.

Risks Vs Returns:
Risks in India used to be fairly high, however now with legal contracts, a stronger financial and legal system it is almost as safe as the UK.
Further with your returns not coming primarily from rentals, the risk of rent is not significant.
The risks in UK have risen with higher risk of rental default as well as in some areas uncertainty with future prices. Overall the risk and reward scenario was very different across these two markets. However they are now coming together with returns significantly higher in India.

 

Criteria

UK

India

Average minimum Capital needed

£50k

£20k

Expected Annual Price rise

5%

20%

Risk

Medium

Medium

 Why invest in India -Proposal

For the young investor or experienced we believe India is a fantastic opportunity.

For the young investor or first time buyer we suggest that if you do not have enough saved for a deposit in the UK, invest in India where you can pull out within 12-24 months and then with the returns you will have enough to buy your property in the UK.

For the experienced investor, you can make significant returns in an hassle free way.

We can advise on many investment options from the top Indian developers with plots of land in excellent locations starting from under £20k.
We have links to Hiranandani, Othello, Synthesis, Ajmera, ACE, Bakeri, Gala and more….

Call us today for FREE advice to explore your options.

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