Why this real estate broker stays on rent

livemint.com:

Owning real estate in India can be a complicated affair for non-resident Indians (NRIs) due to several financial and logistical hurdles. One of the significant challenges is the tax implications for rental income. Tenants paying rent to an NRI landlord are required to deduct 30% tax at source (TDS) along with an additional 4% cess.

NRIs don’t even benefit from indexation, which adjusts the purchase price for inflation. Buyers must deduct tax on the total sale value. However, buyers can apply for a lower TDS certificate to reduce this amount.  

Besides, NRIs often face difficulties managing the property remotely. Tasks such as approving repairs, managing maintenance costs, or renewing rental agreements usually require property owners to be physically present. However, NRIs do have the option of appointing a power of attorney (PoA).

Mahesh Ahuja, a seasoned real estate broker with years of experience in the industry, shares with Mint his perspective on why residential properties may not always be the best investment choice for NRIs. 

As someone who worked in the Indian Navy earlier, I experienced the hassle of frequently shifting homes due to transfers. I didn't want to go through that again, so renting provides me the flexibility to move easily.

For most people, a house should be considered more of a consumption item than an investment. The appreciation for residential properties is often not as high as that of commercial properties, which I have focused on instead. 

My son is an NRI based in the US, and I've seen many NRI clients struggle with maintaining and transferring properties in India, especially when their children are settled abroad and have no interest in the property. I didn't want to create that kind of