As real estate prices continue to climb in metro cities like Mumbai and Bengaluru, social media is abuzz with posts over whether it’s wiser to invest in a compact yet high-value 1BHK in Mumbai or a spacious home in the US.
“So have been house hunting in Andheri West, most 1 BHKs are ₹1.80 crore. And 95% of them will go for redevelopment. For the same price, I can buy a big house in a smaller city or town in the US,” wrote one of the users, who is also a US citizen by birth.
However, he added that though the initial cost is the same, there are property taxes, and general maintenance is supremely expensive in the US.
Mumbai, known for its skyrocketing property prices and limited space, remains one of India’s most expensive cities for real estate. On the other hand, while offering larger homes and better infrastructure, the US housing market comes with its own challenges, including high property taxes and market fluctuations.
Does job insecurity in the US make Mumbai a better choice?
Users pointed out that with job insecurity in the US, buying a large home in a smaller American city may be risky compared to purchasing a 1BHK in Mumbai for the same price.
“Mumbai’s heat and dust make it feel unlivable, while Tier II and III cities aren’t viable options. Houses in the US may be affordable, but without a job, finances can deplete quickly. However, the overall quality of life is significantly better,” a Redditor wrote.
Should you rent in the US and use proceeds to buy in Mumbai?
Another Redditor suggested a strategic approach—purchasing a house in the US and renting it out while using the rental income to invest in Mumbai’s real estate market. This method leverages the higher rental yields in certain US cities, where properties can generate a steady cash flow, especially in high-demand locations. By doing so, an investor can maintain ownership of a valuable asset abroad while accumulating funds to purchase property in Mumbai.
One of the most important factors encouraging NRIs to invest in Indian real estate is the depreciation of the Indian rupee. A Redditor posted that a weaker rupee increases the purchasing power of those earning in stronger currencies like the US dollar.
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Tier 2 cities offer viable real estate alternatives
One Redditor said that Tier 2 and 3 cities are viable alternatives and significantly better and more livable than Tier 1 cities like Mumbai. They emphasized that with the same budget required for a cramped 1 BHK in Mumbai, one could build an independent house within a secure, well-planned society in the suburbs of a Tier 2 or 3 city.
According to this perspective, Mumbai’s skyrocketing real estate prices, congestion, and lack of space make it an impractical choice for homebuyers seeking a high quality of life. In contrast, Tier 2 cities provide larger living spaces, cleaner environments, and better affordability, all without compromising on necessary facilities.