8 tips for you to invest your money in your home country
People who live outside their home country are always looking for ways to invest their hard earned money. There are varying interest rates in home country compared to the country they live in. And also they might better understand the investment in their home country than in the foreign country. For that, one has to look forward for the future investments that one can make in their home country to reap the benefits of it at a later stage.
In this article, we bring forth some tips that anyone who lives abroad till find useful to invest in their home country.
#1. Buy a House in the home country
One would definitely want to own an house in his native land and there is no best time to buy a home in the country than the time when you are residing abroad and still working and earning a good amount of salary. The home prices are on a run and buying a home will make a good investment in the future. At the same time, one should remember that there might be some legal issues or stay order from court due to any unforeseen reasons! So, investing in real estate should be done, but only after proper investigation of a project. Also, one should investigate the general property appreciation per year and compare it with the general deposit rates (say fixed deposit rate per year). If the investment in property is not giving good returns on an yearly basis, it might be better to go for fixed deposit unless one plans to live in the home and not buy it for purely investment purpose.
#2. Political, economic and social environment
The overall political and economic environment of the country should also keep in consideration before making an investment in the country as the overall economic scenario should also be favorable before one is looking to invest in the country. As an example, if the government is promoting financial inclusion, it might be useful to invest in stock market in those stocks which are in area of microfinance. Or if the govertment has plans for building infrastructure (say roads, bridges, etc) then one might invest in stock market in real estate related stocks.
#3. Invest in stable and regular income
A less risk averse should look more towards having a stable income and invest in securities such as municipal corporation bonds and government as wells as non- government debentures which can reap an investor a regular income and at a stable rate. Or one might simply do fixed deposit and get a good interest rate which might not be possible to get in foreign country.
#4. NRI Benefits
A foreigner investor should also look for other benefits that he can reap. While being an NRI living in an outside country, he can explore the benefits of those investments which are exclusively for the foreigners.
#5. Spend according to your saving plan
An investor who is looking to avail benefits in the future should always pull back his current expenses in order to make an investment. He should look back at his savings plan and the future needs to be taken care of and then an investment for reaping the timely benefit should be made.
#6. Beware of the TAX laws
One should be aware of the tax liability of the home country that one belongs to. If one makes an investment in the country, he has to pay taxes to the government so before going to put money in any fund an investor should be aware of the tax liabilities and should settle it on time.
#7. Changes in currency exchange rate
The investor has to take into consideration, the exchange rates of the country in which he/she is residing. If there are many fluctuations or the currency is so volatile, then it is not recommendable to invest at that point of time and the investor should wait for conditions to ease. Also, one should regularly transfer money to home country rather than keep waiting for the right time. As an example, if one earns 4000 USD per month (after taxes), he/ she might transfer 2000 USD on a monthly basis. Rather than waiting for few months in expectation of better currency rates. That way, one can keep doing fixed deposit on a regular basis and enjoy the power of compounding.
#8. Take advantage of funds
One of the great investing inventions is the fund. Index funds and exchange-traded funds (ETFs) are great products that can provide you with access to a variety of assets while limiting your risk through instant diversity. Additionally, these types of funds are often low-cost. One should be aware of the latest ETF’s and other avenues of investment that can earn money and a good return on cost of capital.
We hope you enjoyed this article. Do leave your comments below as to what you think is the best strategy to invest in your home country. For regular updates, subscribe us via email and we will deliver our next article, right in your mailbox!