H1B Visa + Online income = Trouble

I came across an article which made me aware of the issues related to H1B visa and earning income through Online.
If you are on H1B visa working in US, then you are not allowed to earn income through any means other than your employer and the investments you made. If you do so, then your legal status would be in trouble. Even though you are not working for any employer, the online earnings such as Adsense considered to be an income from other source than your employer which is not allowed.

Please do not consider this blog as legal advice and not take any actions based on this post. This is just a warning about earning income from other sources while you are working on H1B visa. Please discuss with your immigration attorney and take actions as necessary.

Aaranya Kandam - Movie preview

I believe this will be the best movie directed by S.P.Charan till now. The trailer is very promising. From the glimpse of the trailer, I could say, it's all about Chennai's underworld but presented in different way. The things that would differentiate this movie from other run of the mill movies are presentation and story telling perspective. Definitely this movie created lot of buzz when the trailer got released. Tamil movie goers are eagerly waiting for this movie for a long time now as the movie was initially refused by the state censor board and now approved by the central board after the film crew agreed to take out few scenes from the movie.

Now this movie will be releasing on June 10, 2011 and do not forget to watch.

Caution: This movie is not for children and light hearted people.

You can watch the trailer here.

Investing secret revealed

I always wonder why NRIs buy houses in US instead of buying in India. I want to know buying a house in US is financially beneficial or it's the feeling about owning a house in US makes the people to buy over there. I was in a quest to find that answer and found it. So here I present my findings.

Lets assume I am a guy who has $60,000 in cash. I could either buy a home or rent a house in US. Which option would be beneficial for me after 10 years. Lets analyze each option one by one.

Buying a home:

       Note: All values are average and assumed values.
                                       Home Cost - $200,000          Down Payment - $50,000

                                       Loan Amount - $150,000       Loan term - 30 Years            Interest Rate - 6%

          For this, my monthly  home loan premium would be $899.33. Adding home insurance($850/year), property tax($2500/year) and maintenance($2000/year) would bring my monthly total premium amount to $1345 per month.
          Total Housing expenses for 10 years = 1345 * 12 * 10
                                                                 = $161,400

On top of this, adding the down payment($50,000), selling cost($16127) and move in expenses($10,000),  my total investment and expenses on my house would be $237,527.

       Home value appreciated after 10 years - $268,783 (3% appreciation per year)
       Tax benefits in 10 years                        - $   35,876
                                                                __________________
       Total value after10 years                     $304,659

       Total Gain after 10 years = 67,132 (304659 - 237527)

So total gain is $67132. After 10 years, the remaining loan principal amount is $125799. So deducting gain from this amount gives how much amount I spent on housing to provide the roof for my family.

Total amount spent on housing for 10 years when I own a house = $58,667 (125799 - 67132).



Renting a house and investing in India:

For $1000 monthly rent with $25/month renter insurance and 3% rent increase yearly, the total rent amount paid in 10 years would be $141,286. (average monthly rent $1177).

The investment amount I have is $60,000 which is used for $50,000 down payment and $10,000 move in expenses.
Most of the properties in major cities in India appreciate 12% each year. Then in this case, my land investment would have gained almost 300% in 10 years ie. $186,351.


Total amount spent on housing for 10 years when I rent a house = $141,286 - $186,351= $-45065.

That means I earned $45065 while renting a house in US.

Conclusion:
By renting a house in US and investing in India, I will earn $45065 instead of spending $58667 when I own a house in US. Totally I gained profit of more than $100,000 that is earned amount plus the amount saved on spending.
Addition to this amount, I have additional amount $170 each month ie. monthly owning house expense $1345 - renting house expense $1177).  So yearly I save $2040. If I apply 8% compound interest, then this amount will become $31,917 in 10 years.
In my opinion and research, it becomes very clear that Investing in India is the best option.

Chennai Airport: In-line baggage screening

Chennai airport starts in-line baggage screening for International travel.Chennai is the second airport to get this facility in India, after Ahmedabad.
Hopefully this will introduce more space in the passenger halls, as X-ray machines would be removed soon.
I always hated these X-ray machines. They diminished the airport's appearence and increased the time passengers got to spend during check-in process.
I believe Chennai airport would get another face lift when the new terminal is made available for passengers. I can not wait for those days.

Saudi Arabia - Six year cap on the residency of foreigners

Saudi Arabia is planning to impose a six-year cap on the residency of foreigners in the country as part of its program to regulate the local labor market. This move will likely affect a large number of Indians working in that country.

Would this be applicable for all types of  workers? I know so many skilled workers who work in Saudi Arabia and they have been there for more than six years. This would be a big change for them. Hopefully this cap might not be applicable for all skilled categories.

Madurai New Airport Terminal - But not international yet

The newly constructed terminal in Madurai airport will be inaugurated on second week of August and will be ready for use in September 2010. This much needed project would help the development of Madurai and surrounding areas. I don’t know the reason why this terminal as of now would not be operated as an international terminal. The Aviation Minister announced that Madurai might become an international airport in near future provided more airlines and passengers use the airport.

           Is it the right decision?  When this project was initially announced, the plan was to make Madurai as an international airport. Is passengers traffic significantly reduced later? What made the ministry to reevaluate their decisions? It’s a fact that 40 percentage of the passengers traveling to and from Chennai are from Madurai area. So making Madurai as an International airport is a must thing to do. I don’t agree with the ministry that More Airlines should service Madurai to make this as an international airport. Forgive me I am wrong. Should it be cleared by the ministry to operate Customs and Immigration facilities in the airport and announce this as an international airport, so that Airlines would consider operating more service to Madurai? This is now up to the state government to push for it. Lets hope “Madurai International Airport” dream becomes reality.

Update: Madurai airport is permitted to have customs counter. Steps are undertaken to implement customs counter. The next step would be to acquire the permission to have immigration counter. Once these counters set up, Madurai airport soon will be Madurai International Airport.

Chennai desalination plant

Chennai desalination plant is going to operate starting from July 31, 2010. This project was under construction for last 3 years. Finally it is ready to serve Chennai. Lets hope that this project would be successful and solve Chennai's water problem, Although this project alone can not solve the water problem. But the project's success would encourage the government to implement more projects like this. This plant cost is Rs.400 Crores and this would supply 100 million liters drinking water to Chennai.

Srilankan Tamil and Tamil Film Industry

    I read an article which mentioned that Tamil Film Actors/Actress are planning to visit Sri Lankan tamils. In a way, it's a good thing to do. These things should not be done for publicity. If these guys are really interested in doing something for the tamils, do without announcing it big.Why there is so much controversies to do something good.

    I have recently read that Asin visited war affected areas in Sri Lanka and Tamil Film Association had decided to take actions against her. Wait a minute!!! Haven't these film association guys decided to go to Sri Lanka after She went there. Why is this contradiction? Is it because she caught the limelight first by going there without telling them? Can they really take any actions at all against any actors/actresses? I couldn't remember anyone get affected by their actions. There were so many publicity stunts happened in Tamilnadu because of the arrogant Srilankan Government.

    Enough is Enough. Help Sri Lankan tamils. Don't gain from them. All I can ask from these guys, please don't make fun of these poor people and help them and make sure they get your help. Bye.. Vazhga Tamil... Vazharga Tamil Makkal