Buying property in Nepal

First thing to clarify on the condo question would be to get confirmation that Nepal's Parliament actually approved that plan, originally put forward in 2012, which would allow foreigners to own apartments in apartment buildings. I think you'd have to check on current status with a lawyer. What sticks in my mind, however, was the high price tag of those condos quoted in the press and elsewhere and, if my memory serves me right, there was like $250,000 minimum amount that foreigners would be asked to pay for their purchase...And that was 6 years ago! If I now seem vague on the subject, it is because this information seemed so outlandish to me back then, I never even considered the matter any  further.
Besides, from my personal point of view, if I come to Nepal, it is not to live in a tower or high rise buildings but, rather, to enjoy the countryside and the beauty of the hills. 
As a footnote, whenever I happened to drive past so many of those high rise apartment buildings past Patan in Saddhobatto area in 2015 after that terrible earthshaking quake, I could see the heavy damage and cracks all over those buildings. Many of those tall heavily damaged buildings were either completely recovered with heavy green tarpaulins, or under re-construction or plain closed, with no one living in them. At the time, I thought to myself, "NOT for me!" - but that is a personal opinion.
Other footnote in attempt to clarify: In Nepal, either a person has a Lal Purja Land or Property ownership certificate which insures that person to have Security of Tenure of a given property - or he/she doesn't -
Alternatively, someone who is renting or leasing a property under Contract has NO comparable security of tenure, be it on a short or long let or long lease or "for life".

Why would you want to buy land in Nepal? It is much safer to buy elsewhere. Nepal is an unstable country. You should not bring anything to Nepal that you are not willing to get on a plane and leave behind.

They say, "He who can destroy a thing, controls it." That is so true. If you own land, they can destroy it (Your ownership via the culture and courts.) You need to be in control.

Listen to what Madagascar says. They have no control over her. If they say, "Leave," she leaves to another place taking her life, intact, with her. She is in control because she can leave at any time destroying the income gotten from that property rent.

Don't bring anything into Nepal that you don't consider a donation to Nepal that you can, hopefully, use while you are here.

There are 2 groups of people in Nepal: Nepali, who get some, if little, service from the government and non-Nepali, whose duty it is is to be a cash cow. This is codified in their rules, both official (One price for Nepalis and another price, 10X higher, for non-nepalis (zoo, temples, air flights) and unofficial (taxi rides.))

If you have too much money, the question is not, "Can I buy land in Nepal?" It is, "How do I give money to Nepal's rich people by buying land in Nepal so that I get minimum pain when they take it?"

You've said it all. It's true, non-nepalis are like cash cows in this country. All expats and visitors listening? Eh guys, ready to pay 10X?

Sounds to me that the sooner nepalis come to their senses and stop charging non-nepalis, tourists and other foreigners 10x, the better. Haven't they heard that cows in Nepal can also be milked dry? Now think I'll pass Nepal altogether and go elsewhere. Surely there must be other countries in that part of the world where they charge less. Besides, I don't think anybody likes to be ripped-off.

Actually, of all the things mentioned, differential pricing doesn't bother me, except for taxis. The majority are very poor. You can tell how well off a Nepali is by what he drives. (Average income in Nepal is $800. However, that includes the huge number of rural people who make <$1.00 per day and does not include bribery which can make up 90% of one's income.) ($1.00 = NPR100)

Cars = Upper class - With a tax of 250%+, tiny cars start at $30,000+. Between money from bribery and/or taxes being waved, these people have disposable income. Their numbers have probably doubled since the earthquake since none of the money seems to be going for reconstruction and most is used to reward the elites. They did announce last week finishing the foundations of 200 homes. But, after 2.5 years and $4 billion in donations, that seems like an awful small and slow. Well, if they can at least finish those 200 homes with that $4 billion,, they will only have cost $20 million per home for a 2 bedroom home. Of course, all the other Nepalis have either rebuilt their own home or (75%) are still living under tarps.

Motorcycles = Middle class - I had one clerk who worked 2 jobs, his wife was a teacher, they got a bit of money from his dad who lived with him, his wife, and their 2 kids. They owned their own tiny old house. Together, they pulled in $300 month and considered themselves well off, upper middle class. One current clerk gets $150 per month and can afford a motorcycle (about $1200 - $1500 new each after taxes. Scooters may be a bit cheaper.)

Walk/Public Transportation, bicycle = lower class. One clerk gets $100 per month and walks/buses everywhere.

For these last 2 groups (>80% of people just in Kathmandu valley), differential pricing is crucial. The zoo cost NPR750 for foreigners and NPR150 for Nepali adults. Even this puts it out of range of lower class Nepalis and severely inhibits middle class Nepalis. I only wish foreigners could pay NPR2000 or even NPR2500 for a yearly pass. It is a nice place to hang out that is near where I live and it is nice and green - a great place to walk. They could even put up a box labelled, "If you drove here in a car, please donate NPR500 per adult for the animals."

Nepalis are a very hard working people. However, their Hindu/Buddhist religion encourages them to stay pacified and they are easy fodder for the upper class, who are akin to American televangelists. If you want to help people who very nice and very hard working, this is a gold mine. But, if you want to buy property and retire in comfort - not so much.

As per the peace and friendship treaty of 1950 between India and Nepal, Indians can buy property, do business and travel in Nepal without passport or visa likewise Nepalese can do in India.
I am also planning to buy a piece of land in Nepal to start a Technical Training College in Nepal.


Regards
Dr. Asvene Sharma
Ph.D. (Biotech), PDF
Young Scientist Award (Govt. Of India)
**

You are no doubt the right man  and you've no doubt come to the right place at the right time, in a country where the people need sorely to be educated at all levels. 
In all my years there, I have noticed time and time again with nepalis I worked with that they are not good at taking initiative - on their own. Even secretaries at the office will just sit there and wait for orders before undertaking any task. Among tradespeople, plumbers for example, who came to our place  They will stand there and wait for instructions, or the nod or whatever signal one has to give, to prompt them into action - to get the job started. Passivity might be a good word to describe this kind of nepali mindset. So maybe this is something you could give thought to and include in your curriculum, in back to basics and fundamentals.
In renovation and other jobs I undertook in the country, I also noticed that half the time, tradespeople would show up without tools. And when I say tools, I mean an electrician would show up with no pliers, or a carpenter would come without a hammer. Let me say this, I have never seen one come with a tools box. Even when the gas man came to deliver a gas bottle to my office, in town, each and every time, he didn't even have a single tool on him to break to cut off and break open that little metal capsule which is present on top of those 20L gas bottles. Inevitably, the gas man would ask me to use "one of my kitchen knives"....! Caught by surprise, at first I would hand him one of my sharp knives....Result, he would hand it back to me with a damaged blade, so the knife was good for the trashcan. I hate to think how many knives I lost that way!
Then there is the unforgettable straw-carpet man! I'll never forget it! When he showed up to take my order for floor carpeting of my house in the country, this supplier got down on his knees, on the floor, and actually measured the whole floor area with his elbow! 15 elbows in length, 25 elbows in width type of thing. A meter stick, what's that?

Leo Schilts,

I'm truly sorry for your horrible experience. I was born in Nepal but do not live there anymore. I'm very shameful to hear how you were treated by Nepali people and government. They are corrupt people. Your description is very accurate. And I do speak with an experience as a Nepalese born .

USA Nerd,

It makes some sense what you are saying about buying land etc. However I would not say the country is unstable at this point.. more just chaotic in a new democracy.

If you are married to a Nepali I don't see the risk in buying land? We have several pieces without issue collectively that are more than $600,000 US.

I suppose they could deport me and if I didn't bring the money in through the Rastra bank and fill out the right forms it can be hard to take out of the country but I feel like lawsuits in the USA are just as likely to take property having spent more than 400K this year on two of them for one of our businesses.

But to be honest I can rent a home in Nepal that costs $200,000 to build for around $200-$400 so why would I buy it? I would be better putting the money there in the bank at 11-12% or having the money work for me in the US..

My suggestion is dont think about buying any property because everything is over priced and the currency is way too over valued. The economy still sustained only due to foreign employment remittance. And the foreign employment is no guarantee in the future, the likes of projects in Qatar. You are better off just rent an apartment or a whole house in suburb.

That's absolutely correct. The bubble could break at any time.

Leo Schilts is 100% correct. I was born and raised in Nepal. Migrated to Canada when I was 32.

I'll join you on that, and with Leo's comments. Why run the risk of losing one's shirt?

Hard to be optimistic in the light of latest reporting period which shows that Foreign Investment in Nepal is down by more than 50%. That should tell us something.

Hmm.. So part of me says why buy in Nepal?  A house that costs $300,000 to build can be rented for $500-600 a month if you check around ( we have found many).

I can put my money to work in the US at 12% interest and the banks in Nepal (if you are not worried about taking money back out of Nepal) pay 9-11% interest depending on the bank and the program.

SO from that respect seems wiser to let money work for you if you are not planning on selling in the near future.

On the other hand, there are places in Kathmandu for example that go up about 40% a year if you are on the main road etc.  SO if you would look at it like a business and then buy and sell every few years then it makes sense again if you are not worried about taking your money back out of Nepal. That is much different.

Otherwise yes you can have a corporation purchase some property or like many of us our spouse is Nepali and so it is titled in their name with us as partners or inheritors. My wife and I have several houses and land in KM as investments with our dear sisters.

It's true of all our brothers and sisters throughout the country. I don't know of a single soul who doesn't aspire to have a roof over his/her head - especially those very unfortunate ones who lost everything they had in that devastating quake.
But now it's billions and billions the country also requires from investors to develop the nation's hydroelectric potential, and at long last to bring electricity to each and every of those homes and to prop up the national grid in an effort to meet industrial/commercial needs.  Official figures show that the country's potential of that hydropower is 84,000MegaWatts. Nepal's installed hydroelectric capacity today stands at 753 MegaWatts, less than 1 per cent. As things now stand, they make up for the shortfall by importing more and more electricity from India. Its a long road to Tipperary.

@Nabin Phuyal

The subject of this thread is "buying property in Nepal"

Do you have information or advice you can post here that may help.

@Nabin.

Do not post contact details here on the open forum.

I have lived in Kathmandu for nearly five years. Here are several thoughts for foreigners considering long-term stays in Nepal who desire secure housing:

1. Leasing is reasonable relative to the cost of home-ownership in KTM Valley and Pokhara and is the most (only?) realistic option for most foreigners who are not married to a Nepali citizen. I have found that finding one or two-year leases is not difficult, especially once you are conversant in the Nepali language.
2. Long-term leases are also possible, but carry some risks, as there is a little that can be done if the Nepali property owner decides to breach the agreement and kick you out.
3. I am aware of some foreigners with business visas who have invested majority stakes in limited liability companies that, in turn, hold land titles in Nepal. From an investment perspective, this is not without substantial risk, as any Nepali business partners could potentially challenge the foreigner and the system is set up to favour local business partners in case of any dispute.
4. I was approached by a tout during my first ever visit to Nepal 15 years ago encouraging me to "buy" land in Pokhara for $10,000 USD. If you are a relative newcomer to Nepal do not trust offers like this, and do not rush to "buy" land without deep knowledge of the local culture, language and strong local relationships.
5. Political stability is improving in Nepal, but real estate and investments still carry additional complications not found in the US/UK/EU. That Prachanda wore the Daura Suruwal this month is a sign of some changes taking place.
6. Marriage is the safest and most (only?) realistic pathway toward land ownership in Nepal as a foreigner, but as other contributors have mentioned, will go exclusively to the Nepali partner in case of a divorce. Women can eventually acquire citizenship through marriage (though many desire to keep their original citizenship), but men will need to renew their marriage visa every year.
7. Land is still very reasonably priced in the hills outside of Kathmandu in places that are newly connected to the road network, but expensive in the valley itself. Best to let the spouse/in-laws do the negotiating if buying land through a Nepali spouse.(lest the seller shake the magic bideshi money tree...)
8. Only consider buying land in Nepal if you are happily married and truly love Nepal. Nepal is not a great country for foreign investment if making profit is a goal. I lived in Nepal for nearly five years on a 5-year study visa while doing research and working remotely (sadly, the 5-year visas are no longer available ) and only considered buying property there after proposing to my wife whom I have known for more than four years.
9. Not all Nepali spouses fit the desperately poor characterisation described in earlier posts, but do be aware of how your partner's background will shape the relationship if you are serious about marrying a Nepali. My own spouse has stayed for nearly 20 years in the UK as her father is a British Army Gurkha, so she is already familiar with western culture, but for a younger Nepali who has never lived abroad there are bound to be significant cultural differences, especially for western women marrying Nepali men. Be aware of these and don't rush into a marriage without knowing what you are getting yourself into...
10. Check Hamro Bazar regularly to get a sense of prices and market trends and try to avoid middle men as much as possible.

Peace