Many Indians living abroad often have their own properties back in India. NRIs often invest in properties in the form of apartments or houses, or a piece of land, in order to secure their stay in India.
However, this leaves many in a dilemma as to what needs to be done with the property back home.
You have the option of leaving it as it is, and having it ready once you return home. But many prefer to give it up for rent, as this not only brings in additional income, but also keeps the house uninhabitable, and what some would call ‘alive’.
Many Indians in fact do have this system in place, that they utilize in order to get added benefits.
Investment isn’t something that Indians need a lot of help with. Land is an invaluable investment, and one that never really gets ‘old’. But nevertheless, here are a few investment tips if you are the landlord of property in India, but are settled abroad.
Reason for Investment
The first and foremost thing you must pin down is why you wish to invest in a property in the Indian real estate market.
Having a clear purpose in mind ensures that you don’t fall prey to attractive schemes that come back to haunt you in your time of financial need.
As with any property, location is of utmost importance. Of course you’d want to purchase a property closest to your home town, but the real estate market in India may not approve that since the market rates are constantly fluctuating and you’ll find that it is best to invest in a completely different city or state altogether.
Further, if you have no plans of returning to the property anytime soon, investing in one located in a metropolitan hub ensures that you will have the option of renting it out, which brings us to our next point.
Once you’ve made your investment in real estate, you successfully have it in your name. However, not being physically present in the city/area presents a few problems.
Caring for the Property
If you are under the impression that you can simply purchase a property and leave it be, you might have been misguided.
A popular choice amongst most investors is that they simply give the property up for rent until their return. But consider this: a rental might help you get immediate returns on your investment, but this can present a few problems of its own.
Tenants can make your life hell, even if they live in a faraway country.
Many NRI landlords are often faced with such demands as a state-of-the-art bathroom instalment, or they may even ask for wood flooring and what not. Obviously, these are unforeseen demands and cannot be screened when a potential tenant turns up.
Without the presence of a physical watch, it is highly likely that your tenant may damage your property and simply get away with it, because there is nothing that you, as the landlord and owner can do, except terminate the contract of their stay.
However, you do not simply want to incur damage on your property.
Chances are high that you will have to rely on brokers or word of agencies, to get you respectable tenants. This means that your property will be priced significantly low and offer you lesser returns than a similar [property going up for sale, personally from the landlord themselves.
If you’re looking for a tenant, and are settled abroad, then it may be time for you to reconsider the best ways you can make your real estate work for you!