Why I'm buying Real Estate in these 3 locations | Akshat Shrivastava

Summary

This video explores the real estate investment potential in Dubai and India, highlighting the tax benefits of Dubai's 0% income tax on property rental income and the challenges of India's higher taxes and operational costs. The speaker, with practical experience in both markets, compares different types of real estate investments, emphasizing the importance of growth potential, operating expenses, tax efficiency, and ease of exit. The video aims to guide investors through the complexities of the Dubai market, focusing on high-quality assets for cash flow and appreciation, and warns against the pitfalls of poor construction quality and oversupply.

Takeaways

• 🏠 In Dubai, there is no income tax on rental income, no short-term or long-term capital gains tax, and a lower stamp duty of 4% compared to India's 7-9%.
• 🌐 Dubai's real estate market is a trading market with a focus on high-quality assets and a preference for villas and townhouses among families, and apartments for tourists.
• 🔍 The Dubai Land Department's transparency and use of blockchain technology make the market safer and more secure for investors.
• 📈 High-quality properties in Dubai can offer both cash flow and appreciation, with potential yields of around 6% post-tax.
• 🌆 Dubai's real estate supply is high due to ongoing development and expansion, which can impact property appreciation and should be considered when investing.
• 🏡 Villas in Goa are highlighted as good investment options due to their limited supply and potential for high appreciation.
• 💼 Operating expenses, such as maintenance charges, can vary significantly and should be considered when investing in properties, especially in Indian metros.
• 💰 Cash flow properties are crucial for offsetting EMIs and ensuring a positive return on investment; properties in Goa and Dubai can offer strong cash flows.
• 🚫 The script warns against investing in under-construction properties in Indian metros due to the risk of projects not being completed.
• ✈️ Dubai's appeal as a tourist destination and a place for families to settle contributes to its real estate market dynamics, favoring certain types of properties.

Q & A

What are the current tax benefits for property investors in Dubai?

In Dubai, there is currently 0% operational income tax on rental income from properties, 0% short-term and long-term capital gains tax when selling properties, and a 4% stamp duty charged by the Dubai Land Department upon purchase.

Why might someone consider investing in Dubai's real estate market over Indian markets?

Dubai's real estate market offers tax benefits such as 0% income tax on rental income and 0% capital gains tax, which can be more attractive compared to the higher taxes in India, leading some to consider investing there.

What are the four dimensions to consider when analyzing property markets in Indian metros according to the video?

The four dimensions to consider are growth potential, operating expenses, tax efficiency, and ease of exit or the ability to sell the property.

What is the speaker's stance on buying under-construction properties in major Indian metros?

The speaker advises against buying under-construction properties in major Indian metros, considering it a gamble and a potential financial mistake that could lead to significant distress.

What is the significance of cash flow properties in the context of the video?

Cash flow properties are those that generate a positive monthly income, which can offset the EMIs on a home loan. The speaker emphasizes their importance, especially in the current economic climate, as they provide a steady income stream and are easier to exit.

What is the speaker's opinion on the quality of construction in Goa's real estate market?

The speaker warns against buying properties with poor construction quality, even if they offer high rental yields, as they can lead to significant maintenance issues and may not appreciate in value over time.

Why does the speaker recommend considering Villas over apartments in Goa?

The speaker recommends Villas because they are tied to land, which tends to appreciate faster in value. Additionally, Villas in tourist areas like Goa can generate good cash flows through short-term rentals.

What is the primary characteristic of Dubai's real estate market according to the video?

Dubai's real estate market is characterized as a trading market due to its low transaction costs, transparency, and the absence of short-term and long-term capital gains tax, making it attractive for investors looking for quick appreciation and sale.

What are the two main customer profiles in Dubai's real estate market mentioned in the video?

The two main customer profiles in Dubai's real estate market are tourists and families, with the former preferring apartments and the latter preferring townhouses or Villas.

What is the speaker's advice on managing properties for short-term rentals in Goa?

The speaker suggests that there are systems and processes in place, including Airbnb management companies, that can help manage properties for short-term rentals, making it feasible for outsiders to invest in Goa's real estate market.