Deflating Indian Rupee – A Positive Boon for Property Investors
Recent events have been a real boon in the potholes and a narrow cycle gap.
The news has been all over the world media about the historic record lows of the Indian Rupee(INR) against the US dollar and GBP (British Pound). It is an alarming situation for the Indian Government but has been a boon to many sections of the society specially investors who want to invest in property in India. It has been affecting Importers, Fuel prices, students studying abroad etc .But it has lead to a real reality growth of investment inflow in India in the current situation. The property prices in India are still soaring towards growth.
What does it really mean from an economical point of view?
It means that the economy is struggling in the current scenario of budget deficit. It is calculated in real terms of the foreign exchange reserves of the Indian Government. But it does not affect the investor in any way.
What does it mean to the Common Man?
It really means that the people in India will have to pay more for the interest rates set by the Government and which will directly impact the inflation rate. This as well does not affect the investor in any way.
What it means for the Investor?
For the investor it is a real boon. It literally means that the investor is getting a record low price for the property.
A property is valued at INR 100 and still remains the same.
The investor straightaway gets equity potential in the scenario of 18%. This means that if you were paying INR 100 for a particular property, you will still be paying INR 100 for the same. Just you will have to spend less in the Foreign Currency ieUSD or GBP to buy the same.
So this gives direct confidence to the buyer in the Foreign Market outside India to currently buy in India. The market is currently low but will regain in a couple of months. So it really means that investment of INR 100 will be INR 118 in a couple of months plus appreciation at current value. So there is a straightaway potential of earning more on Investment Property or building an Investment Portfolio.
Many NRI’s are buying more in the present situation as it gives them more value of the hard earned foreign exchange and with the exchange rates getting better it gives them an added advantage. The reality sector which is catering to the NRI’s has had sudden inflow of investment due to recent developments in the economy.
Indian market has been a trusted real estate growth market and due to recent developments it has been one of the lucky sectors of advantage of the present situation. There have current legislation but in place by the Indian Government last week to restrict the outflow of capital funds from India to stop big corporate taking advantage of the current situation.
We all know the present situation is a short lived situation and a window of opportunity for some. India has been growing at a furious rate in the last 10 years with the record development growth. So the dust will settle down quickly and things will be stable before we realize.
So if you are an Investor or a corporate who wants to Invest in India or have already invested in India and need any further guidance pertaining to Investment in India or moving your assets out from India kindly contact PERACTO LEGAL and we will be happy to assist you in your endeavors.