In the year 2007 – A 35 year old NRI who earned $ 3 Million could come to India, to Bangalore with a sum of Rs. 14 Crore, go to a place called Palace Orchards and purchase a 2 Ground Property for Rs. 8000/- per Square Foot , invest the balance in a Fixed Deposit giving him 10.5% a year. (After Taxes – $ 3M)
This is a Real Life NRI i am talking about. He sold a Encryption something for $ 3 Million liquid Cash and returned home and purchased a 2 Ground Property for Rs. 5.2 Crores in Palace Orchards (Bangalore, a very posh place where Veteran Actor Rajkumars sons live) [2 Ground = 5000 Sft roughly]. It cost him only 33% of his wealth.
He invested the rest of the money in State Bank of Mysuru at earned an excellent living of around Rs. 6.25 Lakhs a month. If he invested in US based on minimum stock trends he would get around Rs. 5.80 Lakhs.
He lived like a King, leasing a Car from a car rental agency and enjoying himself by working in an NGO with animals.
The Value of $ 3 Million in US in 2007 is equivalent to around $ 3.5 Million or Rs. 22 Crores Today
- If he goes to Palace Orchards today the Bloated Property values for 2 Grounds stands at a whopping Rs. 40,000/- per Square Feet. That means he would need Rs. 30 Crores for the same house. It now costs 140% of his wealth.
- Today if he invests with State Bank of India, he gets an income of Rs. 3.95 Lakhs instead of Rs. 6.25 Lakhs. Instead if he invested in the US Stock market he could earn the same Rs. 5.80 Lakhs at the minimum (Based on stock trends)
- In 2008 – He paid Rs. 74,000/- a month for a Toyota Innova. Today the same Innova will cost Rs. 1,80,000/- a month for the same distance.
This is the same story of Indian NRIS
India is living in a virtual reality with everything becoming much more expensive.
In 2007 – $ 3 Million in US was like a fortune in India
In 2020 – $ 3.5 Million in US is a better option than coming to India with $ 3.5 Million. You get a better lifestyle in the United States.
A Second reason is the Mumbai Syndrome
When i went to Mumbai for the first time, i was told – houses would be small, roads would be crowded, it was such a difficult place to live
Yet when we left Mumbai – I simply did not want to leave. My Wife also loved the place.
In the same way Indian NRIs are also used to US too much to go back to India.
Conclusion:-
- India is too expensive today for the same standard of living in US
- Mumbai Syndrome – No reason to leave the US and return to India.
