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Tue, Mar 3🤝 NRI Life
My parents left me a flat in Pune (2BHK, currently rented for Rs 25K/month). Property value is about Rs 80 lakhs ($95K). The rental yield is terrible (3.7%) and managing it from the US is a headache. Should I sell and invest in US markets instead? Or does it make sense to keep In...
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Sold my flat in Bangalore last year after doing the same math. Here's the reality: **Reasons to sell:** - 3-4% rental yield vs 10-12% S&P 500 average return - Property management from abroad is a nightmare (tenant issues, maintenance, society politics) - Capital appreciation in India real estate has been flat (2-4% real return) in most cities - TDS on rent for NRIs is 30% (vs 0% if you invest in US index funds in Roth IRA) - Repatriation is getting easier through NRO/NRE accounts **Reasons to keep:** - Emotional attachment (family home) - Hedge against rupee depreciation - Place to stay during India trips - Indian real estate may boom in certain cities (Hyderabad, Pune IT corridors) I sold, invested in VTI (Vanguard Total Stock Market) and am up 15% in one year. No regrets. But if it's your childhood home and money isn't tight, the emotional value matters too.
If you decide to sell as an NRI, hire a CA in India who specializes in NRI taxation. The capital gains tax rules for NRIs selling property are different from residents. You'll need a lower TDS certificate from the income tax department to avoid paying 20%+ upfront.
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