NRI selling property in India, Real estate in India, Selling property in India
NRIs and home investment
Buying a home is a long-term investment for everyone. In India, it is a common trend for everyone to invest in homes when there is enough fund to spare. Non-resident Indians (NRIs) are at an advantage while buying as they have a higher income cap. Selling a house property involves many things to consider too. Especially if the seller is an NRI, then there are many chances that he/ she may not know these factors.
Factors to be considered by NRI selling property in India
When to sell?
Selling a house involves proper timing. Being an NRI selling property may get difficult as you may not be aware of the market conditions. If you sell it at a wrong time, when there is a dip in prices, then you are not likely to get a higher return on investment. Not only the rates, on certain months of the year there may not be a good demand for houses. For example, during winter or during the month of August, there are not many buyers and hence, the demand is very low.
Setting up the selling price
You cannot set up whatever price you expect. Unrealistic prices would not get you many buyers and the whole exercise would become a waste of time and effort. There has to be some analysis before setting up the price. Consider checking for many other properties in the same area, look for ads in the real estate websites and also check with the owners nearby your property. This would give you a fair idea of setting up the price.
Choosing the agent
This is one of the toughest challenges that you may face while selling property in India. As you don’t get to see him often, you may have to rely on whatever the agent is saying. Select the agent based on the experience and reviews. Check for the past list of properties that he has sold and consider asking the owner of those properties. A good agent will help you fix a competitive price for your property and also helps with negotiating with the prospects.
NRI selling long-term capital gains attract TDS of 20 percent. The proceeds of the property are treated as capital gains and taxed. If you reinvest the capital gain within two years or in tax-exempt bonds within six months of selling the property, the capital gain will be exempt from tax. For example, if the capital gain is Rs. 30 lacs and the new property is Rs. 20 lacs the remaining 10 lacs would be treated as capital gains and taxed accordingly. For an inherited property the cost of the previous owner is considered as a cost of purchase.