dpp
10-11 09:00 PM
We cannot start a S-corp on EAD. Need to be GC holder or US Citizen.
The Internal Revenue Code provides that a Corporation filed with any U.S. state shall be taxed under "Subchapter C." This essentially means that all Corporations start out as C-Corporations for tax purposes.
Should a Corporation's owners later wish to be taxed as an S-Corporation, they would file a "Subchapter S" federal tax election (Form 2553) within 75 days of incorporating or within 75 days of the beginning of the calendar year. To do this, the Corporation would need to have less than 100 owners, all of whom must be either U.S. Citizens or permanent resident aliens ("green card" holders). Once the "S" tax election is made, the return to be filed is the 1120 "S", rather than the 1120. Whether or not you decide to be taxed as an S-Corporation, your company is still a "General Corporation" in the eyes of the state of incorporation.
http://www.incnow.com/incorporating.shtml
http://www.legalzoom.com/incorporation-guide/definition-of-s-corporation.html
But we can setup Solo or Partership or C-Corp. Don't run into legal issues by setting up S-Corp on EAD, before getting GC.
Good luck.
The Internal Revenue Code provides that a Corporation filed with any U.S. state shall be taxed under "Subchapter C." This essentially means that all Corporations start out as C-Corporations for tax purposes.
Should a Corporation's owners later wish to be taxed as an S-Corporation, they would file a "Subchapter S" federal tax election (Form 2553) within 75 days of incorporating or within 75 days of the beginning of the calendar year. To do this, the Corporation would need to have less than 100 owners, all of whom must be either U.S. Citizens or permanent resident aliens ("green card" holders). Once the "S" tax election is made, the return to be filed is the 1120 "S", rather than the 1120. Whether or not you decide to be taxed as an S-Corporation, your company is still a "General Corporation" in the eyes of the state of incorporation.
http://www.incnow.com/incorporating.shtml
http://www.legalzoom.com/incorporation-guide/definition-of-s-corporation.html
But we can setup Solo or Partership or C-Corp. Don't run into legal issues by setting up S-Corp on EAD, before getting GC.
Good luck.
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vbkris77
02-26 02:39 PM
Here is how I came up with that analysis. Last year they made changes to give GC for those stuck in FBI name check if they passed 180 days. So most of the ROW got their GC last year. There were not many labors approved from 2008. So there is no demand from EB2 ROW this year. With the economy going down, not many would get EB1s either. I don't anticipate many EB5s either this year. So major chunk of EB visas will need to come to EB2I/C. Will CIS do that or not is a different story.
Stan09
03-11 01:20 PM
Hi All,
something really strange is going on:
I485 EB2 filed at NSC Dec 3,2008, and on Feb,18 received RFE(!) requesting employment verification, divorce certificate, W2 and some other stuff that has been posted to them just 2 months ago.:confused:
something really strange is going on:
I485 EB2 filed at NSC Dec 3,2008, and on Feb,18 received RFE(!) requesting employment verification, divorce certificate, W2 and some other stuff that has been posted to them just 2 months ago.:confused:
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nojoke
09-05 09:11 PM
I remember that in the early nineties it was next to impossible to get a home loan in India. I think the only company which gave out home loans was HDFC and the interest rate was a whopping 16%. Property prices at that time conformed to what people could actually afford as the house had to be either paid in full or you had to take out a loan from your provident fund.
Fast forward to 2000 and beyond. After the Indian rupee became fully convertible and the banking regulations were relaxed every bank or finance company started to make loans. The upshot of that is that everyone could buy a house and car through taking out loans. This of course created this huge demand for new housing from the middle class which translated into a steep increase in land and property prices.
This may not exactly be a total bubble as loans are there to stay. What is happening though is that home construction is going on at a rapid pace and at some point Indian cities and their suburbs may be overbuilt. At that point you would be stuck with your house and not be able to sell as is happening in the US. Of course some markets will correct but I donot think Bombay, Bangalore or Hyderabad will.
I'm a a total layman regarding such issues and I am just trying to reason this through.
There has been a correction already going on in Bombay and Bangalore. Bombay has lost 30%. It is in the news.
Fast forward to 2000 and beyond. After the Indian rupee became fully convertible and the banking regulations were relaxed every bank or finance company started to make loans. The upshot of that is that everyone could buy a house and car through taking out loans. This of course created this huge demand for new housing from the middle class which translated into a steep increase in land and property prices.
This may not exactly be a total bubble as loans are there to stay. What is happening though is that home construction is going on at a rapid pace and at some point Indian cities and their suburbs may be overbuilt. At that point you would be stuck with your house and not be able to sell as is happening in the US. Of course some markets will correct but I donot think Bombay, Bangalore or Hyderabad will.
I'm a a total layman regarding such issues and I am just trying to reason this through.
There has been a correction already going on in Bombay and Bangalore. Bombay has lost 30%. It is in the news.
more...
akhilmahajan
10-25 11:15 PM
Same with me. I hope people understand that this is a serious issue.
GO I/WE GO
GO I/WE GO
gcisadawg
02-09 10:05 AM
This, effectively, means that if the girl stops earning for any reason such as pregnancy or is unable to earn, she immediately forfeits the right to send money to her parents. This is the most illogical statement I have ever heard.
And it also means that for any reason, if a girl remains a house wife, she has no right to send any money to the parents like you, as the earning member, do.
This is the very strange attitude that may get a marriage in trouble.
Did I even say husband shouldn't send money to his parents from his earnings?
But shouldn't that be also need-based? How come it is the right of the husband to send any amount of money he wants to his parents without the wife complaining and how come it becomes a case of "taking for granted" when a non-earning wife wants to send money to her folks in need? This is a hypothetical situation and nothing to do with OP's case.
And then how is it we, husbands, are the first ones to start complaining when our wives don't get a share of our in-laws property following their demise?
And tell me then, following a divorce why are there laws which require you to split your net worth evenly with your non-working ex-wife? Is that acceptable to you then or you want to put forth an argument that "hey, we don't have a child and she is no longer my wife and so I am not obligated to give her a dime"
My stand is based on the premise that a man is financially responsible for his wife and his kids and not to wife's parents! The point I was making is about a completely non working spouse. It is not about a wife that leaves workforce for medical reason temporarily.
Let us not confuse the responsibility towards a man's wife and kids with that of in-laws!
Using the same token, a man shouldn't expect/demand any property/cash from in-laws!
I'm perfectly OK with humanitarian and need based help. What crosses the line, according to me, is that 'taking for granted' attitude!
If the brother in OP's story is taking care of his parents, then this situation wouldn't have occurred. Look at it other way. If the man's parents are in need of money, it is better to ask the man instead of their son-in-law!
A man taking a stand and be done with it has a better chance of saving a marriage than a man caving to the demand and building resentment. Hey, if a man is willing to please his in-laws in all possible ways, then who are we to stop him! Let him enjoy!!
And it also means that for any reason, if a girl remains a house wife, she has no right to send any money to the parents like you, as the earning member, do.
This is the very strange attitude that may get a marriage in trouble.
Did I even say husband shouldn't send money to his parents from his earnings?
But shouldn't that be also need-based? How come it is the right of the husband to send any amount of money he wants to his parents without the wife complaining and how come it becomes a case of "taking for granted" when a non-earning wife wants to send money to her folks in need? This is a hypothetical situation and nothing to do with OP's case.
And then how is it we, husbands, are the first ones to start complaining when our wives don't get a share of our in-laws property following their demise?
And tell me then, following a divorce why are there laws which require you to split your net worth evenly with your non-working ex-wife? Is that acceptable to you then or you want to put forth an argument that "hey, we don't have a child and she is no longer my wife and so I am not obligated to give her a dime"
My stand is based on the premise that a man is financially responsible for his wife and his kids and not to wife's parents! The point I was making is about a completely non working spouse. It is not about a wife that leaves workforce for medical reason temporarily.
Let us not confuse the responsibility towards a man's wife and kids with that of in-laws!
Using the same token, a man shouldn't expect/demand any property/cash from in-laws!
I'm perfectly OK with humanitarian and need based help. What crosses the line, according to me, is that 'taking for granted' attitude!
If the brother in OP's story is taking care of his parents, then this situation wouldn't have occurred. Look at it other way. If the man's parents are in need of money, it is better to ask the man instead of their son-in-law!
A man taking a stand and be done with it has a better chance of saving a marriage than a man caving to the demand and building resentment. Hey, if a man is willing to please his in-laws in all possible ways, then who are we to stop him! Let him enjoy!!
more...
SkilledWorker4GC
07-15 11:23 AM
^^^^^
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glub
07-18 07:39 PM
Even though future VISA bulletins show PD way earlier than your PD, your I-485 may get approved since you are in the system.
So, who ever gets to apply I-485 are in much better shape than people with PDs in 2002 or 2003 but do not file I-485 now.
REMEMBER, USCIS USUALLY DO NOT FOLLOW ORDER AND YOU HAVE TO BE VERY LUCKY OTHER THAN TURNING ALL THE RIGHT PAPER WORK.
This is contrary to every description of the process that I have read so far... I don't believe your I-485 will get approved just because it is in the system, the PD has to be current at the time of processing...
So, who ever gets to apply I-485 are in much better shape than people with PDs in 2002 or 2003 but do not file I-485 now.
REMEMBER, USCIS USUALLY DO NOT FOLLOW ORDER AND YOU HAVE TO BE VERY LUCKY OTHER THAN TURNING ALL THE RIGHT PAPER WORK.
This is contrary to every description of the process that I have read so far... I don't believe your I-485 will get approved just because it is in the system, the PD has to be current at the time of processing...
more...
eb3_nepa
07-14 02:13 PM
I am trying to pay thru PNC Bank. When trying to add IV, there are 2 options. One is With number and the second Without number.
eb3_nepa: Could you please put some guidelines on how to use BillPAy? Sorry for the ignorance.
I think it would be without a number. Now that depends on which number? If they need an account number then, yes no account number OR you could use your IV handle as the account number. Different banks have different methods of BILL PAY.
eb3_nepa: Could you please put some guidelines on how to use BillPAy? Sorry for the ignorance.
I think it would be without a number. Now that depends on which number? If they need an account number then, yes no account number OR you could use your IV handle as the account number. Different banks have different methods of BILL PAY.
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rp0lol
06-21 01:10 PM
another 100$ from IL
PayPal Receipt ID: 70125366SU56XXXXX
GO IV!!!!
PayPal Receipt ID: 70125366SU56XXXXX
GO IV!!!!
more...
indio0617
03-09 09:52 AM
Here is the link to the full markup. SJC is going in the order of the titles. Our sections are predominantly from Title 5 but some are in 4 too.
http://immigrationvoice.org/forum/attachment.php?attachmentid=23&d=1140888843
Still talk about illegal aliens... Hope we (legal) dont get drowned amid these arguments
http://immigrationvoice.org/forum/attachment.php?attachmentid=23&d=1140888843
Still talk about illegal aliens... Hope we (legal) dont get drowned amid these arguments
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ychousa
07-18 06:47 PM
Does PD exist just to be able to file I-485? Or as some members say, does it also play a role after filing I-485 for adjudication? Does CIS go by PD or RD when the visas are limited?
Let's say A has PD(Priority date) Dec 2004 and RD(Receipt Date) Jul 25 2007, and B has PD Mar 2007 and RD Jul 2 2007. Who would be adjudicated first?
Let's say A has PD(Priority date) Dec 2004 and RD(Receipt Date) Jul 25 2007, and B has PD Mar 2007 and RD Jul 2 2007. Who would be adjudicated first?
more...
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Mouns
04-30 03:19 PM
Born in China, you can't get a Visa, even if you have a job not fillable by an US guy. And same thing if you are spouse,child you need to wait for years.
Can we estimate what kind of relief would be given in these cases?
Openheim: 225K recaptured GC family and Employment. Would provide some relief, not a lot!. As for family, about 50GC would go the husband and wife. it would be a first step.
Lowsy job and recapturing wouldn't help a lot! needs to explore other possibilities...
Can we estimate what kind of relief would be given in these cases?
Openheim: 225K recaptured GC family and Employment. Would provide some relief, not a lot!. As for family, about 50GC would go the husband and wife. it would be a first step.
Lowsy job and recapturing wouldn't help a lot! needs to explore other possibilities...
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pmat
03-13 01:03 PM
How long does it take to receive the cert in mail?
nixstor,
mine took 20 days.
nixstor,
mine took 20 days.
more...
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delax
07-20 01:32 PM
Guys,
The calculations below is not to scare anyone but it may very well a reality. Based on the assumptions below, some people may have to wait up to 20 months to get a EAD card: Ouch!
A Total I-485 Applicants: 750000 Applicants
B Each EAD processing time: 5 Minutes
C Total processing hrs: 62500 Hours
(Calculations: AxB/60)
D Daily productive Hours: 5 Hours
(It is a government body!)
E Total Man Days (Business Days): 12500 Man Days
(Calculations: C/D)
F EAD Workforce: 30 People
G Total Business Days: 417 Days
(Calculations: E/F)
H Average Business Days in a month: 21 Days
I Total Clearing Time : 20 Months
(Calculations: G/I)
Here's my estimate regarding the expected I-485 filings for July 2007 based on the approved LC petition data provided by DOL. See link below (Thanks ! DreamGC)
http://spreadsheets.google.com/pub?key=pPp-1fPOWrpRSbOSVaat9ew
LC Approvals (Expected 485 filings in July 2007)
2007: 50000(50000) Estimated since data unavailabe
2006: 79782 (79782)
2005: 6133 (6133)
2004: 43582 (34866) 80% will file in July, 20% filed earlier
2003: 62912 (31456) 50% will file in July. The rest filed earlier.
2002: 79784 (Nil) Since more than 95% would have filed 485 earlier.
I am ignoring anything before 2002.
If you add up the numbers in parentheses the total is 202,236 - primary applicants. Assuming an average family size of 2 gives us 404,472 give or take 10%
I would say 80% of the 400k people may apply for EAD - that still makes it 320k EADs - the others may not want EAD right away or could be kids less than 14 years old.
The calculations below is not to scare anyone but it may very well a reality. Based on the assumptions below, some people may have to wait up to 20 months to get a EAD card: Ouch!
A Total I-485 Applicants: 750000 Applicants
B Each EAD processing time: 5 Minutes
C Total processing hrs: 62500 Hours
(Calculations: AxB/60)
D Daily productive Hours: 5 Hours
(It is a government body!)
E Total Man Days (Business Days): 12500 Man Days
(Calculations: C/D)
F EAD Workforce: 30 People
G Total Business Days: 417 Days
(Calculations: E/F)
H Average Business Days in a month: 21 Days
I Total Clearing Time : 20 Months
(Calculations: G/I)
Here's my estimate regarding the expected I-485 filings for July 2007 based on the approved LC petition data provided by DOL. See link below (Thanks ! DreamGC)
http://spreadsheets.google.com/pub?key=pPp-1fPOWrpRSbOSVaat9ew
LC Approvals (Expected 485 filings in July 2007)
2007: 50000(50000) Estimated since data unavailabe
2006: 79782 (79782)
2005: 6133 (6133)
2004: 43582 (34866) 80% will file in July, 20% filed earlier
2003: 62912 (31456) 50% will file in July. The rest filed earlier.
2002: 79784 (Nil) Since more than 95% would have filed 485 earlier.
I am ignoring anything before 2002.
If you add up the numbers in parentheses the total is 202,236 - primary applicants. Assuming an average family size of 2 gives us 404,472 give or take 10%
I would say 80% of the 400k people may apply for EAD - that still makes it 320k EADs - the others may not want EAD right away or could be kids less than 14 years old.
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punjabi
08-02 06:17 PM
Hi Niklshah,
What time did your application reach NSC?
i am a 2nd july filer, my cheques were cashed today. filed at nebraska
What time did your application reach NSC?
i am a 2nd july filer, my cheques were cashed today. filed at nebraska
more...
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HV000
07-22 12:28 PM
NY/NJ/CT/MA Members -
Please write to Sen.HILARY CLINTON expressing your dissatisfaction or concern with regard to failure of Sen.Cornyn Amendment. It's critical that we as Indians get her opinion on this issue. She voted NO on this amendment DESPITE the indian lobby contributing to her campaign. Also its likely that she might become our next president.
Obviously, Sen.Obama does not care much for Indians!
Please write to Sen.HILARY CLINTON expressing your dissatisfaction or concern with regard to failure of Sen.Cornyn Amendment. It's critical that we as Indians get her opinion on this issue. She voted NO on this amendment DESPITE the indian lobby contributing to her campaign. Also its likely that she might become our next president.
Obviously, Sen.Obama does not care much for Indians!
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hopefulgc
09-12 11:41 AM
can we put up forum threads here for state chapters or some kind of direct link or page for each individual state chapter
Doing state chapters through list servs is just not working out.
In my opinion
(1) Community must unite
(2) People must come out of anonymity by providing true information
(3) People must walk the talk - just not open threads and keep discussing
(4) Efforts must be well organized - IV is a great organization - we have state chapters where people can organize themselves - helps us all to do things more effectively
The biggest issue is - everyone come here and open threads but it alll stops there - people join state chapters but do nothing - just want to get updates - and always blame IV for whatever happens and question IV and want to grill IV as to what IV is doing.
Can we all get organized?
Sanjeev - I am sorry I am digressing from the original plan of this thread - but lets face reality - what is the use of all these tangential efforts - you may get hundreds of replies on this thread - but is there a proper directive? No one knows what to do it all starts and ends in discussion and waste of valuble time doing nothing.
I would rather recommend
(1) Lets get organized
(2) Give out proper information
(3) Pledge wholehearted support
(4) Be committed
(5) Join a state chapter
(6) Expand the community
(7) Work hard
(8) gather support
(9) take initiatives to lead - support will follow
(10) Do not waste time on unnecessary predictions, discussing waste, roumors etc...
(11) Understand the effort - lobbying - understand that IV needs a lot of money for lobbying - please contribute - please raise funds
Is everyone ready to do the above?
Doing state chapters through list servs is just not working out.
In my opinion
(1) Community must unite
(2) People must come out of anonymity by providing true information
(3) People must walk the talk - just not open threads and keep discussing
(4) Efforts must be well organized - IV is a great organization - we have state chapters where people can organize themselves - helps us all to do things more effectively
The biggest issue is - everyone come here and open threads but it alll stops there - people join state chapters but do nothing - just want to get updates - and always blame IV for whatever happens and question IV and want to grill IV as to what IV is doing.
Can we all get organized?
Sanjeev - I am sorry I am digressing from the original plan of this thread - but lets face reality - what is the use of all these tangential efforts - you may get hundreds of replies on this thread - but is there a proper directive? No one knows what to do it all starts and ends in discussion and waste of valuble time doing nothing.
I would rather recommend
(1) Lets get organized
(2) Give out proper information
(3) Pledge wholehearted support
(4) Be committed
(5) Join a state chapter
(6) Expand the community
(7) Work hard
(8) gather support
(9) take initiatives to lead - support will follow
(10) Do not waste time on unnecessary predictions, discussing waste, roumors etc...
(11) Understand the effort - lobbying - understand that IV needs a lot of money for lobbying - please contribute - please raise funds
Is everyone ready to do the above?
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h1techSlave
07-06 10:53 AM
Do you have your 485 approved ? If not, you are not supposed to contribute to any political campaigns. You have to be a GC holder or citizen to contribute to political campaigns. Its illegal otherwise.
In 1040, we have a checkbox to contribute $3 towards presidential election contribution. If I check that box while in H1B, is that illegal?
Cheers,
h1techSlave
In 1040, we have a checkbox to contribute $3 towards presidential election contribution. If I check that box while in H1B, is that illegal?
Cheers,
h1techSlave
jamesbond007
09-09 01:44 PM
Gapala made some very good analysis in his posts on this thread.
But......
Looking at the country's GDP to analyze the price of land in a few cities does not make sense. The growth in land value is not across the length and breadth of the country. It is only limited to the big cities which are experiencing the money rush.
NRI's from the US are only one piece of the puzzle who are funneling in money to India.
There are NRIs from other countries.
Then there are business people making big profits dealing with other countries.
And local business people who have a lot of black money. All of them together are keeping up the prices.
There also seems to be a change in the thinking of the Indian middle class. Most of our parents' generations were in the habit of saving up money and making purchases with the saved money.(These were savings in a bank account mind you; not investments that grew at a rate better than the inflation.)
The current middle class seems to realize that trying to save money in a bank in order to buy something is foolish since the paper money is losing its value over time. So they are either investing; or making purchases with borrowed money as long as they can make the EMI payments. Overall, the current middle class is not backing out of buying what they need for lack of money. (This trend will probably lead India in the same path as the US i.e. huge debt for everyone)
Regarding the question "why would a farmer sit on land valued at $100K, while only making about $1K by farming that land?" Its only a matter of time before they realize their fool hardiness and then they will sell. Pretty soon when the construction begins in their neighbourhood, and prices of all commodities go up so much that they can't live in their $1K income, then they will be forced to sell. Or they might get the wind of a "someone they know" who sold, and they will follow their example.
Strictly speaking about Hyderabad, there are a lot of farmers who cashed out their lands in the city outskirts. Smart ones then moved out further away from the city and bought more land there to continue their farming. Others are spending their windfall on jewellery, cars and other bling.
All that being said, it is still scary to me.
In my opinion, anyone looking to make a quick buck should not get into it at this time.
If you want to buy because you want to go back and settle there in a couple of years, then that is different.
[quote] to add to the conversation on the price -> locals are also experiencing a glut of money due to the economic boom in the last 5 years or so. Small businesses have really taken off in a big way exporting to Europe/ US. Investors in the stock market have also hit the jackpot. And, once you have money, for most Indians the safest option to invest is in property or gold.
Also better salaries all around fueled by attrition of talent to the IT sector. [quote]
This may be correct to certain extent but only the elite class and creamy layer of 1.8% of total population. When we look at the bigger picture of the country, I could not connect the dots. GDP is just above $2500 and PPP is about $3300. How in the world will you justify $200,000 to $300,000. Plus the cost of financing the purchase.
In simple terms, median home price is 100 times the GDP and life expectancy in india is 70 years. average work life span is 40 years. Home Mortgages are 15, 20 or 25 years in India which will cover only 1/4th of the median price of a home based on even anticipated high GDP growth and considering moderate increase in cost of living. Given that the risk of default is huge and banks are running at very high risk. I believe buying a house is a big gamble in India and more to that for Banks, lending is also a big gamble.
Note that according to banks, investment in apartments capitalize only over 25 years in india. (Rent vs. Own) Is this correct? Average rentals in ONLY Big cities are Rs. 12000 ($275 / month $3300 a year) to 15000 ($340 / month $4000 a year) for the same 1000 sqft 2 bedroom apartments which itself is above the GDP :). What that tells me, even the rentals are also not affordable to majority of the population. Back to captalization part 4000 * 25 = 100,000. which is half of the investment... add the alternate investment value for 25 years, capitalization will be way below 50%.
That means it will take more than 50 years to capatilize the investment. This is more that Mod average work life span of 40 years. Note that Maintenance and Taxes for 25 years excluded in above calc. Are banks stupid?
I do not know what to tell ya man! To me its really scary
A small credit crunch (crisis is not required) might bring the entire economy to floor.
fine print: (Above analysis applies only for working taxpaying people like us who does not have unaccounted money.)
But......
Looking at the country's GDP to analyze the price of land in a few cities does not make sense. The growth in land value is not across the length and breadth of the country. It is only limited to the big cities which are experiencing the money rush.
NRI's from the US are only one piece of the puzzle who are funneling in money to India.
There are NRIs from other countries.
Then there are business people making big profits dealing with other countries.
And local business people who have a lot of black money. All of them together are keeping up the prices.
There also seems to be a change in the thinking of the Indian middle class. Most of our parents' generations were in the habit of saving up money and making purchases with the saved money.(These were savings in a bank account mind you; not investments that grew at a rate better than the inflation.)
The current middle class seems to realize that trying to save money in a bank in order to buy something is foolish since the paper money is losing its value over time. So they are either investing; or making purchases with borrowed money as long as they can make the EMI payments. Overall, the current middle class is not backing out of buying what they need for lack of money. (This trend will probably lead India in the same path as the US i.e. huge debt for everyone)
Regarding the question "why would a farmer sit on land valued at $100K, while only making about $1K by farming that land?" Its only a matter of time before they realize their fool hardiness and then they will sell. Pretty soon when the construction begins in their neighbourhood, and prices of all commodities go up so much that they can't live in their $1K income, then they will be forced to sell. Or they might get the wind of a "someone they know" who sold, and they will follow their example.
Strictly speaking about Hyderabad, there are a lot of farmers who cashed out their lands in the city outskirts. Smart ones then moved out further away from the city and bought more land there to continue their farming. Others are spending their windfall on jewellery, cars and other bling.
All that being said, it is still scary to me.
In my opinion, anyone looking to make a quick buck should not get into it at this time.
If you want to buy because you want to go back and settle there in a couple of years, then that is different.
[quote] to add to the conversation on the price -> locals are also experiencing a glut of money due to the economic boom in the last 5 years or so. Small businesses have really taken off in a big way exporting to Europe/ US. Investors in the stock market have also hit the jackpot. And, once you have money, for most Indians the safest option to invest is in property or gold.
Also better salaries all around fueled by attrition of talent to the IT sector. [quote]
This may be correct to certain extent but only the elite class and creamy layer of 1.8% of total population. When we look at the bigger picture of the country, I could not connect the dots. GDP is just above $2500 and PPP is about $3300. How in the world will you justify $200,000 to $300,000. Plus the cost of financing the purchase.
In simple terms, median home price is 100 times the GDP and life expectancy in india is 70 years. average work life span is 40 years. Home Mortgages are 15, 20 or 25 years in India which will cover only 1/4th of the median price of a home based on even anticipated high GDP growth and considering moderate increase in cost of living. Given that the risk of default is huge and banks are running at very high risk. I believe buying a house is a big gamble in India and more to that for Banks, lending is also a big gamble.
Note that according to banks, investment in apartments capitalize only over 25 years in india. (Rent vs. Own) Is this correct? Average rentals in ONLY Big cities are Rs. 12000 ($275 / month $3300 a year) to 15000 ($340 / month $4000 a year) for the same 1000 sqft 2 bedroom apartments which itself is above the GDP :). What that tells me, even the rentals are also not affordable to majority of the population. Back to captalization part 4000 * 25 = 100,000. which is half of the investment... add the alternate investment value for 25 years, capitalization will be way below 50%.
That means it will take more than 50 years to capatilize the investment. This is more that Mod average work life span of 40 years. Note that Maintenance and Taxes for 25 years excluded in above calc. Are banks stupid?
I do not know what to tell ya man! To me its really scary
A small credit crunch (crisis is not required) might bring the entire economy to floor.
fine print: (Above analysis applies only for working taxpaying people like us who does not have unaccounted money.)
tikka
07-19 02:45 PM
Hi Folks,
I just contributeD $100. I am very glad to be part of IV. Keep up the good work!!
Regards,
your first post and you contributed...:)
thank you for your contribution...
I just contributeD $100. I am very glad to be part of IV. Keep up the good work!!
Regards,
your first post and you contributed...:)
thank you for your contribution...
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