Posted by: fountaindew November 28, 2014
Investing in Land in Nepal..worth it?
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I will go straight to the original question.
I think there's never a "right time" to buy or sell anything. It depends on your objectives, how much risk you are willing to take and what kind of reward you are expecting
If you are looking for a long term investment, then land in kathmandu will probably be a good investment. Because lets face it. Kathmandu is the Capital and will remain the center hub for at least 50 more years. By then probably people will realize it's too messed up and start moving elsewhere but for now it seems to be where all the action is happening. But it doesn't mean that only kathmandu will grow. Other cities in Nepal will grow as much or maybe more. So investing outside of Kathmandu may be even more beneficial monetarily.
It all comes down to whether u can protect the land or not. I think the biggest concern that many people have is the fact that the land will be taken away by others. But I think if you do your due diligence and go through proper government process and also strong fence your land, it will have little chance of being taken over by others.
And then the other thing is how much return u r looking for. If you spent lets say $50K to buy land in Nepal and over the course of 10 years it became $100K, then you would have gained 100% return over the span of 10 years minus the inflation indices. But u also need to consider whether investing in US stocks would have gotten you 500% over the course of 10 years.
Depending on your objectives (Like diversifying your portfolio) it may still be a good deal to invest in Nepal.
But lets consider another scenario. What if you desperately need the $50k you invested in 3 years and the land value in Nepal has crashed and you will only get $30K. Will you still sell your land? Or will you be able to hold it for 10 years so that you will get your projected income of $100K over 10 years?

Those are the important questions you should be asking before making any investment decisions.

So bottomline think of these scenarios
How much I will be investing.
How much time I don't need to draw that money
How much return I'm looking at
Does it makes sense to downsize this investment and instead diversify the $50k into land, stocks, bonds, gold etc or even start your business.
How much inflation, and taxes will I be paying that cancels my profit over the course of time
How much risk I'm putting my money though this and whether it's worth the profit that I will be realizing after 10 years.

Once you can answer all these questions, then investment will make much more sense.
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