Posted by: eklo September 10, 2010
Buying A House in Kathmandu
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The high interest rate in Nepal banks actually is because of volatility of economics in Nepal and rapid development of India (mainly) and China. Chakka-jams, political instability, abject lack of infrastructures themselves point to the unworthiness of putting hard-earned hard currency in Nepali sectors. This is I'm talking as a foreign investor with cash in hand. As a Nepali, it is worth to put all our asset in Nepal no matter what the results are; the worst scenario is you become broke, but again "you spilled your butter in your daal". If you are a bit intelligent, put it in places like Hotels, Hydropower etc. Putting in real estate in KTM is like making the macro-economics of KTM worse all the more, but you may personally benefit from your short-term investment. Been there, done that.
I feel sad when ppl with green cards are actually selling assets in Nepal and bringing the $$$ to the USA to buy assets here.
Nepal has lost about last 15 years in terms of  development due to the political instability of Nepal, and it has played very well in favor of India (although India does not and did not need Nepal for its development).
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