How do I avoid capital gains tax on a rental property?
If you sell rental or investment property, you can avoid capital gains and depreciation recapture taxes by rolling the proceeds of your sale into a similar type of investment within 180 days.
What is a good rate of return on rental property?
Generally, the average rate of return on investment is anything above 15%. When calculating the rate of return on a rental property using the cap rate calculation, many real estate experts agree that a good ROI is usually around 10%, and a great one is 12% or more.
Is buying property a good investment?
Real estate is generally a great investment option. It can generate ongoing passive income and can be a good long-term investment if the value increases over time.
What Is an Investment Property?
An investment property is real estate property purchased with the intention of earning a return on the investment either through rental income, the future resale of the property, or both. The property may be held by an individual investor, a group of investors, or a corporation. An investment property can be a long-term endeavor or a short-term investment. With the latter, investors will often engage in flipping, where real estate is bought, remodeled or renovated, and sold at a profit within a short time frame.
I am a foreign / institutional investor. Can I invest in India?
Yes! Foreign investors and institutional investors can invest directly in Property just like domestic investors.
What are the different investment opportunities available?
PRI offers 3 types of opportunities: Commercial: Completed and rent generating commercial properties at 8-10% rental yield Residential: Completed and rent generating residential properties at 3.5-4.5% rental yield
How are new offerings listed?
Before listing new offerings on the platform, PRI researches opportunities in the market and shortlists specific properties that fulfill our ownership criteria. Once listed, the properties dashboard will contain detailed information on the location, key highlights, pricing, indicative model and legal diligence reports that help you in making an informed decision.
How does PRI select properties?
PRI team comes with real estate investment experience. We select properties based on location, developer, quality of development, scope of price appreciation, legality of title and earning potential.
How do investors benefit?
In case of normal equity transactions, investors benefit from monthly rental returns and appreciation in the property value.
What are PRI fees?
We charge an property Investment fee of 1.0% of total value and a performance fee of 20% of returns at the time of sale after the investor has made 8% annual returns. For e.g. If a property is bought for Rs. 100 and the investor makes Rs. 105 at the time of sale we DO NOT charge any performance fees as we believe we were not able to deliver returns greater than the risk free rate. If for the same property the investor makes Rs. 115, we charge 20% of Rs. 7 (115-108) Rs. 1.4. This way our fees are aligned with investor returns.
Who takes care of tenancy and management?
PRI takes care of all asset management.
Are there any other hidden charges?
No! There are no other charges.
How do I transfer money?
Your investment will go directly in developers account before registration process.
How can I get specific questions answered on a particular property?
You are free to call or email our team or even better – visit our office for a face-to-face interaction.
Can I schedule a site visit?
Sure, we will try our best to schedule one for you
What kind of documentation will I need to sign?
You will sign a PRI form and a property management agreement with PRI.
Who decides exit timing and pricing?
PRI will guide you but you will be the decision maker.
What are the reporting standards and disclosures?
PRI believes in 100% transparency in reporting. All property documents, rental agreements, tenancy details and documents will be shared.
What if I do not want to sell the property?
No issues. You can give it on rent.
Do you offer any guaranteed return?
No we do not guarantee any return. On the contrary we advise potential investors to be wary of any scheme which provides guaranteed returns.
When will rentals be paid?
Rentals are generally paid before the 10th day of every month which will be paid by your tenants directly in your account.
Can I appoint a nominee?
You have to compulsorily appoint a nominee for all your investments.
How will I know about new listings?
Once you have registered with PRI, we will share new listings with you by email.
Does PRI recommend properties?
PRI is a platform that provides you with relevant information that helps you make informed decisions on real estate. However, PRI does not make any recommendations about any property and you should carry out your own diligence before committing to purchasing a property.
How will I be taxed on my share?
Under current income tax regulations, You will be paying two kinds of taxes Rents: Rents received from the property is distributed which is taxable directly in the hands of the investors. Capital Gains: Capital gains on sale (if sold after 2 years) is taxed at 20% after allowing for indexation benefits. The gains may be invested by the investor to avoid paying capital gains tax as per the IT exemptions