Real Estate in India, Living in USA: Experiences?

srir2i · Post by **srir2i** » Tue Sep 12, 2017 4:47 am

R2I status: Unsure
Real estate ownership: Both India (Investments & Inheritance) and USA (Primary Home)
LIA: Long term

Any of you in a situation where you cannot emotionally bring yourself to sell the property that you have in India but also worry that it does not produce any income (growth, a possibility but unsure of true profits given currency fluctuations), and wonder how you or your descendants will take care or address the situation?

Have you taken any steps or how do you deal with this constant thoughts-backlog? Do you have a plan or have acted upon it?

Experiences, personal or what you have heard?

znan · Post by **znan** » Tue Sep 12, 2017 5:22 am

Yes both me and my brother. Slightly different situations. My case first. As you could see from my posts we always wanted to go back. My dad used to manage my finances back in India and has invested in some properties in a tier 3 city in Andhra. A total of about 30L. And then I also invested in couple of properties in Bangalore say around 45 L and some group investments around 20 L. What is my plan, nothing :). Sorry to sound this relaxed but for some reason I have been feeling quite detached from with the catching the next big wave stuff like real estate, bitcoin, stock etc., I am happy where I am (finances wise). I plan to build a home sometime in one of the tier3 lots I have. But nothing serious though. I know this is not what you are looking for from what can be done with those properties perspective

So let us talk about my brother's situation, he invested heavily in Bangalore real estate (mostly plots/land etc.,) and some investments in the same tier 3 city. He could not stay back in India and when the opportunity knocked he packed his bags and came back to us in 2012. Now he badly wants to sell off the properties. Unfortunately the time is not right it seems, he has been trying and there are no potential buyers. I too keep trying on his behalf and keep checking with my friends back in India. No luck yet.

I believe if it is like an apartment or other residential property then one is slightly better in terms of demand otherwise it all seems very slow. One suggestion I had for my brother was to build an apartment complex because some of his properties in Bangalore are sizable and sell off the apartments. Unfortunately he has money crunch and can not invest in even building the apartments. May be that is something you could explore?

srir2i;662561R2I status: Unsure
Real estate ownership: Both India (Investments & Inheritance) and USA (Primary Home)
LIA: Long term

Any of you in a situation where you cannot bring yourself to sell the property that you have in India but also worry that it does not produce any income (growth, a possibility but unsure of true profits given currency fluctuations), and wonder how you or your descendants will take care or address the situation?

Have you taken any steps or how do you deal with this constant thoughts-backlog? Do you have a plan or have acted upon it?

Experiences, personal or what you have heard?

direstraits88 · Post by **direstraits88** » Tue Sep 12, 2017 6:01 am

srir2i;662561R2I status: Unsure
Real estate ownership: Both India (Investments & Inheritance) and USA (Primary Home)
LIA: Long term

Any of you in a situation where you cannot bring yourself to sell the property that you have in India but also worry that it does not produce any income (growth, a possibility but unsure of true profits given currency fluctuations), and wonder how you or your descendants will take care or address the situation?

Have you taken any steps or how do you deal with this constant thoughts-backlog? Do you have a plan or have acted upon it?

Experiences, personal or what you have heard?

If you've no plan to move back to India in near term, you are better off selling any investment in RE. Unfortunately market is down and will likely remain down for next several years.

4-5 years ago, the family member who helped me in India passed away. So i started divesting my RE in India by selling few of the plots in the outskirts. Last year, I was lucky to find a buyer for my flat in BLR just before Demonetization before prices went down 20%. Neighbors in the apartment said i was selling too low and were unhappy. But when i met them this year, they were asking me to find buyers for their flats at the price that i sold. I'm still left with couple of plots in Chennai and Mysore which i'm ready to sell at the price i purchased, 7 years ago. Yet no buyers.

If you've inherited a house in a well developed locality in a Large city, it will retain value and may keep up with inflation.

So investing in RE has not been successful when i consider the opportunity loss of the locked up capital over the past 12+ years. Add to it, the cost of paying capital gains, tax filing, etc. The only benefit was that my parents lived in the flat for 5 years.

srir2i · Post by **srir2i** » Tue Sep 12, 2017 6:05 am

znan;662564
I believe if it is like an apartment or other residential property then one is slightly better in terms of demand otherwise it all seems very slow. One suggestion I had for my brother was to build an apartment complex because some of his properties in Bangalore are sizable and sell off the apartments. Unfortunately he has money crunch and can not invest in even building the apartments. May be that is something you could explore?

Nice post! As for building in India, cost & logistics of building and the expected return on that investment are a concern.

znan · Post by **znan** » Tue Sep 12, 2017 6:13 am

agreed. a very close friend of mine has converted a 40 * 60 lot into some 8 apartments (bangalore). he sold 6 of them keeping two for himself and is upbeat on the ROI and says unless one has experience with construction in Indian markets it would be next to impossible to build (the logistics of building). If at all I build anything this friend of mine is my goto person, implying if one has such help things could become lot easier including selling them off...

srir2i · Post by **srir2i** » Tue Sep 12, 2017 6:14 am

direstraits88;662565 Last year, I was lucky to find a buyer for my flat in BLR just before Demonetization before prices went down 20%.
So investing in RE has not been successful when i consider the opportunity loss of the locked up capital over the past 12+ years. Add to it, the cost of paying capital gains, tax filing, etc.

That's good luck!
In our case, still feel good on the opportunity utilized for it turned out to be good investments in comparison to spending or the fear of holding back from the markets.
You are right, the dollar appreciation, tax situation, and capital that stays locked with no easy way to realize returns are the cons.

krivan1 · Post by **krivan1** » Tue Sep 12, 2017 6:59 pm

Just sharing my exp. I had two flats in B'lore and thought of keeping it to myself. But then remote management especially during vacate and rerenting was proved bit difficult. On top of it, whatever rent collected used to go in repair to make it ready for the next tenant.

I don't know what is the issue with the secondary market in B'lore, it is too difficult to find buyers even while they are prime location. Offered with some decent discount, hardly there were any takers.

I could quickly realise that what the seller and neighbour thinks 'right price' for the property might not be accepptable to the market. If sellers are blind to see the truth, had seen many properties are on sale for so many years and no trace of buyers.

With self realization, offered 50% discount and got rid of the properties in no time.

The OP asked how do we manage the properties without selling while we are abroad. From B'lore experience, I can say it is too difficult. In B'lore, RE discussion is everywhere and almost everyone who enters the city is brainwashed. Eventually every tenant would bite the RE bandwagon and moves on. Turnover ratio of the renters is very high. Keeping it locked also has many hazards. It is tough and personally would be happy to get rid of them.

srir2i · Post by **srir2i** » Tue Sep 12, 2017 10:19 pm

[QUOTE=krivan1;662607
With self realization, offered 50% discount and got rid of the properties in no time.

The OP asked how do we manage the properties without selling while we are abroad. From B'lore experience, I can say it is too difficult. In B'lore, RE discussion is everywhere and almost everyone who enters the city is brainwashed. Eventually every tenant would bite the RE bandwagon and moves on. Turnover ratio of the renters is very high. Keeping it locked also has many hazards. It is tough and personally would be happy to get rid of them.

Appreciate the sincere addition, 50% is creepy.

sundarkannan · Post by **sundarkannan** » Fri Aug 10, 2018 6:12 pm

I have no personal experience in this aspect, but from what I’ve heard apparently RE in India has really picked up in the last few years, especially for NRIs. After the government launched RERA and FEMA, NRI can buy and sell property with ease and get loans approved quicker, too. If you’ve got any property in India I suggest renting them out. It will be a secondary income for you. And if you’re looking to buy a property, consider a reputed builder only. My cousin who is an NRI has invested with House of Hiranandani, he says he is getting good returns.

kingeleven · Post by **kingeleven** » Sat Aug 11, 2018 5:59 am

sundarkannan;679279I have no personal experience in this aspect, but from what I?ve heard apparently RE in India has really picked up in the last few years, especially for NRIs. After the government launched RERA and FEMA, NRI can buy and sell property with ease and get loans approved quicker, too. If you?ve got any property in India I suggest renting them out. It will be a secondary income for you. And if you?re looking to buy a property, consider a reputed builder only. My cousin who is an NRI has invested with House of Hiranandani, he says he is getting good returns.

Everyone make sure you never buy from these Hirchandanis... If anyone you know who is trying, make sure they don't..:wink:wink:wink:wink