A Dubai-based NRI has ignited a heated debate after announcing they will stop investing in Indian real estate. Citing "embarrassing" rental yields and restrictive tax issues for both the owner and tenants, the NRI stated they will not be purchasing a third property, having already leased out their existing two in Hyderabad and Bengaluru.

"Bought one in Hyderabad. One in Bangalore. Both tenanted. Both "doing well on paper." Here's the honest math nobody told me before I bought. The yield is embarrassing. Net rental yield after maintenance, society charges and property tax is 2 to 3 per cent. My UAE savings account pays 4 per cent," the user said in a Reddit post.

The NRI added that tenants hate the landlords settled abroad, as the onus of tax filing falls on them, with the majority unaware of how to go about the process.

"Most have no clue how to do this. Half just refuse to rent from you entirely. Found this out the hard way. The mortgage paperwork is a joke. Back and forth for months. Documents, more documents, notarised POA, overseas bank statements, employment letters. By the time it's done you've aged 5 years," they said.

Highlighting that the exit was a nightmare, the NRI said buying more real estate was 'not worth it' for them and that they will not add a third property to their portfolio.

"Look, my properties are up 30 per cent in rupee terms. FD would've given me 7 per cent annualised. Property won on paper. But for the illiquidity, the headache, the currency drag and the exit pain? Just not worth it for me. Won't be doing a third."

Source:Ndtv