Not only the NRIs are interested in buying a property in India, we Indians also like to own a property abroad as an investment or vacation home or retire home. UK, Dubai, Hong Kong, etc are the top destinations that interest Indian real estate buyers. The idea is great but one need to be careful while doing so. There are many legal formalities that you need to keep in mind. You need to think ahead about the infrastructure of the country, management of the property, return in the time you are planning to make the investment, purpose of the property etc. If the investment is not well-thought, a lot of things can go wrong and you may have to suffer a great loss.
Let us see what are the things that you need to keep in mind while investing in an abroad property.
1. Know the market
Real estate market of India is considered to be quite stable and fewer risks are involved. This may not be the story of another country. Gauge the stability of the realty market of the country. The market is guided by the administration and infrastructural status of the country. When these things change, your investment can appreciate or depreciate. You can search for the reports from various rating agencies that tell which market is fairly a good bet to make the real estate investment. The developed nations are better for buying a house because the market is less risky while the developing economies have the issues like possession delays and the inferior quality.
2. Know the total cost of investment
Know the currency exchange rates. It is wise to buy a property in the foreign market at the times this rate is most suitable. Various countries have various charges on the ownership of the property and these hidden charges are different depending on the purpose of the property. You may have to hold the idea of buying if you are not prepared with such money in advance.
3. The taxes and other legalities
Different countries have different real estate laws, while in India the real estate is not a highly regulated niche, the scenario of other countries may not be the same. Know what are the registration charges and the stamp duty in these countries. They contribute to a handsome amount and one need to be prepared in advance. Also, the tax format on the ownership of the property is also different. India has some arrangements with some countries such that when you own a property there, the tax you pay abroad and the tax you pay in India are adjusted. You can save a lot if you know these things.
4. Seek a local professional
Instead of fully relying on what you read in the books and online, reach out to the property consultants of the country. They know the state of the market like the back of their hand and can give you the best advice for your money. Also, contact the local firm or consultants who know the particulars of the region like the neighbourhood, Govt. plans for the area, prices and appreciation of the property over the period of time etc. This way, you will be saving the time, money, efforts while buying a property and also do not get involved in any legal complications.
Buying an international property is a great risk. One need to be on toes while doing so. It is always better to contact the professionals before spending a dime. Team Own A Roof have experts who can guide you for buying a property in Jaipur, feel free to contact us.