For a while now, “hybrid” and “remote” have been the newest catchphrases. While the epidemic has made it challenging to cross borders, technology has made it possible to organize and complete every task with a single click.
As per an Economic Times report, for years, investing in real estate has been seen as a sure thing. Having stated that, the difficulties we face as citizens of the world with immovable property have multiplied. Even if they have relocated to a foreign nation, non-resident Indians nevertheless find it profitable to invest in the real estate in India, whether it be for sentimental reasons, the accompanying tax benefits, or the exposure that buying Indian rupees provides relative to other currencies.
Given that they may prepare to settle down in their nation of origin after retirement, NRIs believe investing in real estate is a smart choice. In reality, house purchases in India became an attractive choice for NRIs thanks to the lower rupee brought on by the 2020 epidemic and historically low lending rates.
Although both residential and commercial buildings make excellent investments, they also take a lot of time, work and upkeep. Whether it’s locating the ideal property, getting it ready, locating the ideal renters, or locating the ideal individual or professional to look after the property. However, NRIs face challenges including lack of transparency, property upkeep, tax complexities, legal challenges, tenancy maintenance, etc. Proptech businesses did a fantastic job of addressing these issues.
Challenges in managing and owning remote properties:
For everyone, owning property may be a perfect way to create wealth and earn a steady income, but it can also be a hassle because of the ongoing maintenance requirements. More so for NRIs who are recognized for having a broad range of asset classes in their portfolios and who also do not reside close to their homes in India.
Occasionally, their family members and trustworthy friends in India act on their behalf on the basis of power of attorney to help execute and provide advice regarding major steps, such as buying, selling, preparing rent agreements, maintenance, painting, looking for tenants, and navigating changes to the tax code, and so forth. Additionally, because they are preoccupied with their own lives, it might be challenging to approach friends or family for assistance.
Furthermore, a lot of individuals struggle to manage these matters from distant regions without the assistance of friends or family and end up falling victim to scams or adding unnecessary expenses to an already pricey purchase. Without routine property inspections, defects to properties may lie undetected for a while before becoming an expensive problem. Additionally, nothing kills tenant retention more quickly than irregular maintenance, in the end.
Growing “Virtual Landlording”:
Both NRIs and OCIs are currently allowed to own an unlimited number of immovable properties in India, and there are a number of additional benefits as well, such as no tax consequences at the time of acquisition. This is also the reason why modern proptech firms, like NoBroker, have witnessed a sharp rise in NRI investor inquiries.
Additionally, despite lockdown restrictions, proptech platforms allow owners to virtually onboard renters with property pictures and video walkthroughs. Such remote trends have also driven the creation of new services like “complete property management”.
