6 Real Estate Investment Tips For NRIs To Avoid Property Disputes
NRIs And Property Disputes • Global Indians like to make investments in the country of their origin for various reasons. Generating good financial returns is an obvious reason and so is maintaining emotional links with their ancestral land. However, such investments can turn out to be major headaches if they do not take care to avoid problems that are commonly known as NRI property disputes. Here are some tips to steer clear of such issues and conduct safe investments.
Verify Property Documents ● Verify the ownership documents of the property you are buying. ● Make sure it adheres to all applicable building regulations. ● Hire a property dispute lawyer to make the verifications.
Understand Tax Liabilities • Short-term capital assets held for less than 24 months are taxed at normal rates. • Long-term capital assets are taxed at a rate of 20% apart from additional surcharges. • Capital gains are taxed in the year during which the property transaction took place.
Use Power Of Attorney Judiciously ● Use a Power of Attorney to conduct property transactions from outside the country. ● Choose a dependable person for executing a power of attorney. ● Engage India-based NRI legal services to draft accurate documents.
Set Realistic Goals ● Identify the scope of financial risk that you are prepared to take. ● Set a limit up to which you can go while buying an asset. ● Ask for a realistic price when selling a property.
Select A Suitable Location ● Choose a location with good connectivity when planning to buy an asset. ● Make sure the necessary infrastructure like power, water, etc. is in place. ● Select an area that is expected to develop rapidly in the near future.
Learn About Legal Regulations ● Know about all the local zoning and real estate development laws. ● Consult with real estate lawyers to understand the foreign exchange guidelines. ● Make sure to know about all the applicable tax laws.
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