Your dollar still goes a long way

We often hear people saying India has become too expensive. I've even heard some saying that its cheaper to live in US than in India. I think all this is utter non-sense, and grossly exaggerated. From all my recent trips if there is one thing that I noticed it is that the dollar still goes a long way...especially with the current exchange rate of around 48. One just needs to know how to get the maximum out of his buck.

Yes, India is definitely expensive if you dont shed your NRI image. As we all know, the key to a successful R2I is to think like a local person from day 1 and not as an NRI. This includes not feeling shy to look for discounts in everything that you buy, whether its a villa or vegetables at Raithu Bazaar. Bargain and haggle is a tradition in Indian shopping, and there is no reason for an R2ier to be uncomfortable about it. You dont need to look cheap by any means, as some NRIs do by taking this to the other extreme but you dont need to make a fool of yourself by paying the "MRP" either. During my last trip, when we came back from Tirupati we took a couple of autos to get home. I paid Rs.100 for my auto while my brother paid Rs.60 for the same distance. Its only 40 rupees and no big deal, but when my brother told me about it I realzed I had a lot to learn and really quickly.

India can seem very expensive for somebody who is coming from a place like Texas and shopping for real estate in Indian metros. They often make the mistake of comparing their 4000 sft houses on 1 acre lots with the houses in India that are typically built on much smaller lots. Then they start talking about how expensive India has gotten and how they can get a much bigger house in US for the same amount that they are paying in India. I have personally seen several people doing this, and it is non-sense because its not an apples to apples comparison. For such a comparison to be made, they need to go to a tier 2 or tier 3 city in India and look for bigger houses there. In a similar situation, somebody living in a modest condo in the Newyork area will appreciate the value he is getting for his dollars.

India can seem expensive for those NRIs who would like to eat out every day and visit the bars and pubs every other day, just because they are (or have been) NRIs. What's interesting is that these same people seldom drink or eat out when they are outside India. So again, the key is to stay grounded and get assimilated as quickly as possible.

India can seem expensive for parents who send their kids to these so called international schools. From what I heard, the most expensive international school in Hyderabad collects about 3.5 lakhs in annual fees (which btw is still cheaper than a private school education in US). But the question is, for an average NRI returning to India how important is it to send his kids to these high end international schools? One of the DPS campuses in Hyderabad has an annual fees of about Rs.40k, a decent school on a 17 acre campus which I would gladly send my kid to. It just boils down to personal choices that one makes.

So by making these subtle lifestyle changes and having the right expectations you can definitely make your dollar go much longer than you had thought possible. During my recent trip I made a conscious effort to compare the costs of some of the items that I wanted to carry from US to India. To my surprise, they are substantially cheaper in India rupees. Good food in decent family restaurants is much cheaper than what you would pay in US. Several varieties of fruits that are widely available are dirt cheap. The personal service you get from maids, drivers and other aides (by tipping them genrrously ofcourse) is priceless. So I want to say this one more time - If you have a paid off house and car, living in India is a dream. Once these big expenses are taken care of. one can live comfortably (doesnt necessarily mean luxuriously) for about 40 to 50k per month (for a family of 4). Dont let anybody fool you, India is still very affordable and your dollar does go a long way.

Hyderabad Real Estate Update

As you all know, the real estate has been down in dumps for the last year or so. Most of the projects went on hold, not many transactions and everybody looking for the rates to go down even further. So I wanted to check out if anything has changed after the recent elections. While there is a renewed optimism among the people I talked to, the overall activity is still very subdued. People got a taste of price reductions and now they are waiting for the prices to keep falling. While its alright to expect the prices to reach reasonable levels, it would be foolish to want them to go to unsustainable levels, as some of the buyers seem to be doing. No builder or seller wants to take losses on their transactions unless its absolutely unavoidable. So these buyers will be left waiting forever just like they were when the prices were going up crazily. IMHO, the prices are at very reasonable levels now, and there are some terrific values out there for serious buyers (not speculators).

Having said that, here is the current status of some of the big, and some not so big projects in the city.

Lanco Hills - Construction is going on at full speed. I don't know if it tracks to their original schedule but I did see a lot of activity on site. Some of the towers are up, and its a beautiful sight. This project is going to be the crown jewel of Hyderabad real estate. I heard the price is reduced to Rs.4500/sft, but its probably still high for the current market. But again, if the things go according to the plan there will be a certain value attached to a Lanco Hills address.














Aparna Sarovar - Another project where construction is happening in full swing. Builder seems determined to complete the project despite the market conditions, and I have a feeling they will achieve it. Location is a disadvantage, but it looks like its going to be another beautiful project.














L&T Serene County - I liked this project the best. Sits right next to the Gachibowli junction with ORR cutting right through it. Most of the blocks are sold out and occupied, but some newer blocks are coming up. A very good place to live for young families and from what I hear the flats here command a decent rental value.

Bloomfield Ecstasy - My post about Hyderabad RE wouldn't be complete without mentioning this project, as I bought my house here. Slow progress, but progress nonetheless. Deliveries are expected at the end of next year, and at this point access from Gopanapalli T-junction (the 1.5 km stretch) is still an issue. Commencement of Tishman Speyer project next door is the key, as if and when that takes off the area will come back to life.












Aditya Edenwoods (Tellapur) - I saw the project for the first time and didn't like it. The reason is simple - its located in the middle of a big HUDA layout and is surrounded by hundreds of small plots. Most of these plots are individually owned and possibly by NRIs and out of towners. So they have no urgency nor any incentive to build anything there. I think the place will remain like that for a long time to come.

Aliens Space Station 1 - Another project that I visited for the first time. What were the owners thinking, and what were the buyers thinking??? While the distance may not be a big issue, the immediate surroundings of the project are really shocking. This really goes to tell you how one can fool people with flashy brochures and designs. I have a feeling that most of the buyers didn't actually visit the place before buying. On top of all this, there is not much of activity on site. In my opinion, its very unlikely that this project will complete, at least not on the same scale as it was originally planned.

Vision Avenues (Infiniti Homes) - Lot of construction activity. Most of the houses are up, the plot sizes and distance between each house is very impressive. Going to be a very nice community when it is completed.











Indu Aranya - Lot of construction activity, but the location and quality of constructions are the big negative points

Indu Fortune Fields - Good project, but those living towards the railway tracks will have to put up with the constant noise of moving trains. I took a train to Tirupati, and when the train crossed IFF I realized how close the tracks were to some of the blocks. So check that out before you buy.

A lot of other commercial construction activity is going in the Financial district. ICICI building is coming up very nicely. Though recession slowed things down, there is still a lot of activity that's going on. Hopefully the economy will start recovering so some of the projects that went on hold can restart.

Back in US

Just came back to US after a 3 week trip to India. It was a whirlwind, fun filled and fast paced trip which I enjoyed every bit of. This is probably the longest trip that I have taken in the last two years, and it was just not enough. I spent so much time driving around and exploring several new areas in Hyderabad that the time just flew by. Hyderabad is a city that I can just never get enough of, and I am sure my fellow Hyderabadis agree with me. Even with all its chaos, the city is simply magical!!

I drove an average of 50 to 60 km everyday within the city. I love driving myself, as nothing beats the fun of driving a manual transmission in Hyderabad traffic. For all those who prefer an automatic, you just dont know what you are missing. I visited several communities that are under construction and projects, both public and private, that are in flight. Explored a few business opportunities, and am in the process of zeroing in on a couple of ideas. More updates on that later. I am fully convinced that there is a lot one can do even in this recessionary period if there is sufficient drive and proper planning.

Visted Tirupati with my siblings and other family members, and this time opted for train ride instead of a flight. Kind of disappointed with the second AC in Rayalaseema, and probably will not do it again...at least not on Rayalaseema. It got even more interesting when we had to cancel our train tickets and take a Garuda bus on our return. Though the train and the bus were sub-standard the trip was really fun. It was a good time with the family that I was looking forward to.

Lots of parties and get-togethers. I can say without a doubt that people in India (at least the middle to upper middle class) are leading more relaxed and enjoyable lives than those of typical IT guys in US...recession or not. Real estate industry is still struggling, but I think there some positive signs in the market. Affordable housing is the new success mantra and the builders both big and small are adapting to the market conditions and revising their once lofty plans. Good for the market, and the common man.

Got a surprise upgrade to Business class from London to DC while returning. British Airways business class was very good, and I thoroughly enjoyed the unexpected gift.

I"ll post on some specific issues and projects in the next couple of days.

One step closer...

Wife got her US Citizenship today. The whole process took less than 3 months, and in the end it was pretty uneventful. The oath ceremony was interesting - at least to me, as a guest - in that, it made my decision of not applying for citizenship even stronger. Even though everybody seemed to be going through the motions during the oath ceremony, giving up loyalty to one's own country needs pretty serious thinking and determination(in my opinion ofcourse). Wife was all ready and happy about it, so no complaints there.

So that brought us one step closer to our R2I.

I am visiting India next week (6/6 thru 6/25). Anybody reading my blog and wants to meet up in Hyderabad, drop me a line.

IPL, the most boring tournament ever??

I think IPL is gradually starting to kill all my interest in cricket. The extent of commercialization of cricket just boggles my mind. It doesn't feel like watching a cricket match, rather an extended advertisement. DLF maximums, City moment of successes, cheerleeders who have no clue of the game, commentators who are reduced to mouth pieces of sponsors, Preity Zintas, Shahrukh Khans.....God, give us a break!!!!

I believe in evolution, but whatever happened to the good old cricket played in white slacks and with red balls? And whatever happened to the good old honest commentary? I am sick and tired of listening to Ravi Shastri's screaming over the microphone, Sunil Gavaskar's tasteless jokes, Lakshman Sivaramakrishnan's exaggerations and most of all Ranjit Fernando's stupidity. Oh, let's not forget the likes of Rameez Raja's and Mandira Bedis. Cricket, as I knew it doesnt exist anymore. I am pretty sure people of this generation would disagree with me and call me nostalgic, but people who grew up watching the likes of Kapil, Vengsarkar, Madan Lal, Binny would know what I am saying. That charm is not there anymore.

One can even put up with all this crap if the quality of the cricket being played was good. But whats being dished out in this edition of IPL in the name of 20/20 is pathetic. Its high time the Lalit Modis of the game realized that no amount of frills can make up for the lack of quality in the game. The only good thing that happened this year was the Fake IPL player's blog, but even that is fast losing its originality.

BCCI is milking the game dry and making people lose interest. Everything looks great in the short term but they are doing irreparable damage to cricket in the long term which is never going to be the same. England opened their bowling with a spin bowler, Swann, in a Test match last week when West Indies was trying to finish their innings faster than the IPL teams.

Enough said, I rest my case.

To keep working or not?

At 34, I am already tired of a 9-5, or more like 9-7 job. When I started this blog, I was against the idea of working in India after our return. But so many things have changed since then that call for reassesing that decision. It looks like I'll have to work in India for at least the first one to two years, until we fully settle down. This will keep the cash inflow going and help us settle down faster. Even if not from a financial pov, it is still necessary to keep myself busy until I find something that wont need me to slog day in and day out.

I know the market is very tight in India right now. Not much of hiring is going on, and from what I heard its taking several months for people to find a job that they like. I haven't started any attempts yet, but think I"ll need to start tapping into my contacts later this year. I want to give myself at least 6 months to find a good position so I dont rush into something that I dont fully like. I"ll consider myself lucky if I find anything in less than 6 months.

I have several business ideas in my mind that I want to try out when I go back. I dont know if any of these will ever be successful, but I strongly believe that I am not made to work a routine job, no matter how well paying it is. Its a miracle that I was even able to work for these 11 years in US, although I did at times try to get out of the rat race by trying a couple of business ideas, which never took off. I just hope that's not going to be the case in India.

We are crossing one bridge at a time, and are very close to the destination. There are some issues that still need to be resolved but we"ll not let them impact our timeline in any way. There"ll always be issues and if you try to resolve all of them before you R2I, you"ll never find yourself back home.

I am still here

First things first...I am still alive and kicking, and the R2I plans are still very much intact. Thanks for all of you who have checked up on me while I was away.

There are severeal reasons for my prolonged absence from blogging. Firstly, there have been so many things happening in the world at a break neck speed over the last few months, that this blog took the back seat for those who visit as well as myself. Secondly, my increased responsibilities at work didnt leave me with much time to blog. Last but not the least, our pre-schooler going through his terrible 2s takes up most of our time. Combine all these things with my general laziness, and there you have it..

Coming back to our R2I plans, yes 2010 is still the year...nothing changed on that front. Construction of our house has finally started, and should complete sometime mid to late next year. Recession has effected so many proposed developments in that area, but hopefully the place will be livable by the time the house is ready.

Wife applied for her citizenship, and has her interview next month. I haven't applied and probably not going to.

I hope all you guys are doing fine. Its been a tough last few months, and some of my close friends have been hit hard by this recession. As if that was not enough, there is this Swine flu now. All this makes me real sad sometimes.

So thats my update for now. I have a couple of other things that I need to talk about and I"ll post them seperately soon. Till then, Adios!