THE TRAPS AND PITFALLS

HT Estates - - NEWS -

It is wrong for NRIs to as­sume that they can gar­ner good re­turns by lock­ing their for­eign ex­change into high-yield­ing de­posits. More and more NRIs are choos­ing to in­vest in In­dian real es­tate be­cause this is the only route that as­sures them of op­ti­mal ben­e­fits. As long as they main­tain a broad in­vest­ment hori­zon and have cho­sen their prop­er­ties well, the cap­i­tal ap­pre­ci­a­tion on real es­tate will keep th­ese NRIs in good stead.

Most of the projects in In­dia tar­get­ted at NRIs are not pro­fes­sion­ally man­aged and this has neg­a­tive im­pli­ca­tions for some­one who is not present in In­dia. Lack of proper projects and fa­cil­i­ties man­age­ment re­sults in di­lap­i­da­tion of such units, and se­cu­rity also be­comes an is­sue. There are of­ten no pro­vi­sions for pay­ing so­ci­ety dues from abroad. So the prop­erty turns out to be a de­pre­ci­at­ing and legally com­pro­mised money trap. NRIs should not give in to sen­ti­ments or ma­nip­u­la­tive marketing while mak­ing a de­ci­sion on buy­ing prop­erty in In­dia. For NRIs, the In­dian real es­tate mar­ket def­i­nitely holds the high­est pos­si­ble in­vest­ment po­ten­tial. A healthy long-term in­vest­ment hori­zon of seven to ten years should be main­tained, as it is not ad­vis­able to buy on im­pulse

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