Foreign owned property in Goa, (part Two)

goangoangone · Jun 4th, 2007, 13:45

From today's Herald:

http://oheraldo.in/node/25245

GoanCanuck · Jun 4th, 2007, 14:43

That is one poorly written article. The land in Goa is by no stretch of the imagination the most expensive in India.

Kinrara · Jun 4th, 2007, 19:13

Quote:

Originally Posted by TDK

Hi Kinrara, just to let youknow (for a bit of solidarity), i'm in the same boat as you are as i reserved an appartment off plan in 2005 afte rmuch careful research and making sure i met all the criteria (to the best of my knowledge), but hadn't bargained on the goal posts changing prior to me registering the freehold (as you know no longer possible). Anyway at least one positive point is that property prices in Goa seem to have shot up over the last few years so even if i do decide to sell, even at a discount to shift it, hopefully should see some profit.

However, one major concern i have is can i legally sell the property (for full market value) if i only have a 5 year rolling Lease contract (with an option to apply for freehold at no extra charge and to transfer that option to aquire the freehold to any future owners.As i have already paid in full for the property (before being told that its no longer possible to get the freehold), i really need to know what the best exit strategies are in the current situation, so if any members of this forum have successfully sold their (leasehold) properties i'd be very grateful if you could please let me know how you got on,(and any potential pitfalls/advice/legalities/loopholes etc)!

Also i'm not quite clear about the law in India re: repatriating the sale proceeds back to the UK from India as i'm confused as to whether i can repatriate the original payment i made for the property (but not any profit), or if i can repatriate the orrigianl ammount paid and any capital gain (after paying CGT)? Also does anyone knows if there is a double taxation treaty between UK/India? Sorry for so many Qs but am in a bit of a muddle! Thanks for any help with this. TDK

Hi TDK

Thanks for the support.

Yes, it is a bit comforting knowing that you are not the only one in this frustrating boat. With regards to the selling of a property that you don't hold the deeds, I am not sure. I haven't really looked in to selling as I am still hoping that it won't come to that. I bought the property freehold (or so I thought)to live in for most of the year, not for an investment. I am hoping that the visa situation doesn't get worse, at the moment I can live in it most of the year, albeit having to renew my visa every 180 days. I have been visiting Goa for 12 years and still really can't believe that X visa's have been stopped 8 months after I purchased. I was on the understanding that you can repatriate the original payment, but a friend of mine received a letter from their Indian Bank saying that you could now repatriate the sale price plus the profit, I am with the same bank but I didn't receive this letter!

Good luck with your property.

Regards

TDK · Jun 4th, 2007, 22:30

Thanks Nick for your suggestion for me to check the RBI FAQs (which i'll plough through again as soon as i get the chance).

Thanks also Kinrara for your reply and for the info about your friend's letter from the bank saying that it is now possible to repatriate both the orriginal price paid and any profit (but at what exchange rates i wonder)? Anyway if that is the general rule now, then thats pretty good news even if it means possibly losing out a bit to an unfavourable exchange rate i guess.

Like you i also bought my (tiny) appartment not as an investment but as my sole owned property and as my main base as i have been visiting India for the last 15 year or so and so it seemed to make sense to buy a small place of my own (also as i'm priced out of the UK market).

Anyway inview of all the recent uncertainties, whilst i will probably try to keep my appartment (through a Lease initially), i think its important to be aware of the possible exit strategies incase i need to sell at any point.

I'd also hoped to get a 5 year X Visa initially (& went to great lengths to get a residential permit etc a few years ago) but have nmow accepted its no longer an option, and frankly considering the ammount of red tape involved i think the 6 month visa may be a less painful option (and can always renew or atleast extend in neighbouring countries to reduce the expense of returning to the UK if necessary).

Good luck with your property also and All the Best, TDK

Nick-H · Jun 4th, 2007, 22:59

The rupee seems to be plumetting just now.

A good time to be buying pounds with your rupees

(the tears are from my point of view: I want to buy rupees with my pounds, and having seen it heading for 90 last year, watching it fall back into the 70s is, err... sad.)

goangoangone · Jun 5th, 2007, 07:23

Quote:

Originally Posted by Nick-H

The rupee seems to be plumetting just now.

A good time to be buying pounds with your rupees

(the tears are from my point of view: I want to buy rupees with my pounds, and having seen it heading for 90 last year, watching it fall back into the 70s is, err... sad.)

Rupee is strong v the $ and sterling.

crvlvr · Jun 5th, 2007, 07:40

Quote:

Originally Posted by Nick-H

The rupee seems to be plumetting just now.

Actually, the official term is appreciating. Which means, you get less of it in exchange for your foreign currency (plummetting does seem more appropriate, doesn't it?). Leave it to those economists to come up with these terms..

barodian · Jun 5th, 2007, 07:50

Quote:

Quote:
Originally Posted by Nick-H
The rupee seems to be plumetting just now.

Actually, the official term is appreciating. Which means, you get less of it in exchange for your foreign currency (plummetting does seem more appropriate, doesn't it?). Leave it to those economists to come up with these terms..

It is appreciating...Not bad of a idea to convert some Rupees into Dollars and wait till the Rupees depreciates. I read on some article last week that the India Treasury are little concerned with Rupee appreciating.

Nick-H · Jun 5th, 2007, 09:21

Oh good grief; I thought it was some direct action by the government that started it off.

India has, apparently, huge foreign currency reserves, and they were concerned about too much coming into the country.

GoanCanuck · Jun 5th, 2007, 10:47

Quote:

Originally Posted by barodian

It is appreciating...Not bad of a idea to convert some Rupees into Dollars and wait till the Rupees depreciates.

Not a good idea unless you are investing large sums of money and your timing is spot on.

Right now it is better to keep your savings in rupees in fixed deposits in India. The interest rates are much higher than what is available in North America plus the appreciating rupee further adds to the overall growth. If you had invested 1 lakh rupees in a FD just 6 months ago you would have been handsomely rewarded with a return of 16%-18% when you converted back into US dollars.

That is a superior rate of return as compared to buying an ETF in US $ and which tracks the rise and fall of the Nasdaq.

GoanCanuck · Jun 5th, 2007, 11:03

Looks like the real estate developers with their shady lawyers managed to get another sucker.

Michaela took just six days to complete the deal, putting down a 30% deposit. Completion is scheduled for two years, but Michaela is already looking ahead. 'At the end of 2009 I will be on the beach near my apartment bringing in the New Year,' she says.

The apartment will be owned by a company in which Michaela will be the 100% owner. She will be able to take as dividends any rent from letting, but that is not her plan. 'This will be just for me and for family who want to use it,' she says.

http://www.thisismoney.co.uk/mortgag...in_page_id=505

Nick-H · Jun 5th, 2007, 12:22

Mail on Sunday --- Looks like that's one newspaper that Brits shouldn't be getting our property advice from

.

goangoangone · Jun 5th, 2007, 16:19

Quote:

Originally Posted by barodian

It is appreciating...Not bad of a idea to convert some Rupees into Dollars and wait till the Rupees depreciates. I read on some article last week that the India Treasury are little concerned with Rupee appreciating.

..........and when the $ depreciates further?

goangoangone · Jun 5th, 2007, 16:36

Quote:

Originally Posted by barodian

It is appreciating...Not bad of a idea to convert some Rupees into Dollars and wait till the Rupees depreciates. I read on some article last week that the India Treasury are little concerned with Rupee appreciating.

............additionally, news is always reflected in the current value of a market.

Jamie11 · Jun 5th, 2007, 17:54

Quote:

Originally Posted by GoanCanuck

Looks like the real estate developers with their shady lawyers managed to get another sucker.

Michaela took just six days to complete the deal, putting down a 30% deposit. Completion is scheduled for two years, but Michaela is already looking ahead. 'At the end of 2009 I will be on the beach near my apartment bringing in the New Year,' she says.

The apartment will be owned by a company in which Michaela will be the 100% owner. She will be able to take as dividends any rent from letting, but that is not her plan. 'This will be just for me and for family who want to use it,' she says.

http://www.thisismoney.co.uk/mortgag...in_page_id=505

That reporter must have been paid by the shady agents and lawyers to write that

Jun 4th, 2007, 13:45	#391
goangoangone What happened? Join Date: Aug 2004 Location: Goa Posts: 1,953	Goa: India’s most expensive real estate From today's Herald: http://oheraldo.in/node/25245 __________________ GoanGoan......here

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Thread	Thread Starter	Forum	Replies	Last Post
Foreign owned property in Goa, (Part One)	steven_ber	Property in India	739	Oct 22nd, 2006 01:08

Jun 4th, 2007, 14:43	#392
GoanCanuck Maha Guru Member Join Date: Oct 2004 Location: Vancouver Posts: 3,398	That is one poorly written article. The land in Goa is by no stretch of the imagination the most expensive in India.

Jun 4th, 2007, 22:30	#394
TDK Member Join Date: Nov 2004 Location: UK/India Posts: 51	Thanks Nick for your suggestion for me to check the RBI FAQs (which i'll plough through again as soon as i get the chance). Thanks also Kinrara for your reply and for the info about your friend's letter from the bank saying that it is now possible to repatriate both the orriginal price paid and any profit (but at what exchange rates i wonder)? Anyway if that is the general rule now, then thats pretty good news even if it means possibly losing out a bit to an unfavourable exchange rate i guess. Like you i also bought my (tiny) appartment not as an investment but as my sole owned property and as my main base as i have been visiting India for the last 15 year or so and so it seemed to make sense to buy a small place of my own (also as i'm priced out of the UK market). Anyway inview of all the recent uncertainties, whilst i will probably try to keep my appartment (through a Lease initially), i think its important to be aware of the possible exit strategies incase i need to sell at any point. I'd also hoped to get a 5 year X Visa initially (& went to great lengths to get a residential permit etc a few years ago) but have nmow accepted its no longer an option, and frankly considering the ammount of red tape involved i think the 6 month visa may be a less painful option (and can always renew or atleast extend in neighbouring countries to reduce the expense of returning to the UK if necessary). Good luck with your property also and All the Best, TDK

Jun 4th, 2007, 22:59	#395
Nick-H This is just a cameo appearance Join Date: Oct 2004 Location: Chennai, India Posts: 36,197	The rupee seems to be plumetting just now. A good time to be buying pounds with your rupees (the tears are from my point of view: I want to buy rupees with my pounds, and having seen it heading for 90 last year, watching it fall back into the 70s is, err... sad.)

Jun 5th, 2007, 09:21	#399
Nick-H This is just a cameo appearance Join Date: Oct 2004 Location: Chennai, India Posts: 36,197	Oh good grief; I thought it was some direct action by the government that started it off. India has, apparently, huge foreign currency reserves, and they were concerned about too much coming into the country.

Jun 5th, 2007, 11:03	#401
GoanCanuck Maha Guru Member Join Date: Oct 2004 Location: Vancouver Posts: 3,398	Looks like the real estate developers with their shady lawyers managed to get another sucker. Michaela took just six days to complete the deal, putting down a 30% deposit. Completion is scheduled for two years, but Michaela is already looking ahead. 'At the end of 2009 I will be on the beach near my apartment bringing in the New Year,' she says. The apartment will be owned by a company in which Michaela will be the 100% owner. She will be able to take as dividends any rent from letting, but that is not her plan. 'This will be just for me and for family who want to use it,' she says. http://www.thisismoney.co.uk/mortgag...in_page_id=505

Jun 5th, 2007, 12:22	#402
Nick-H This is just a cameo appearance Join Date: Oct 2004 Location: Chennai, India Posts: 36,197	Mail on Sunday --- Looks like that's one newspaper that Brits shouldn't be getting our property advice from .