Here is Why Real Estate is one of the Best Investment Areas for the Nris
Nov 17, 2017 Home Trading Steps
Investing in the India real estate is fruitful for the NRIs, owing to favourable political climate and the slow rise in the prices of the properties in the country. This has enhanced the interest of the global investors. Not only this but also the improved outlook of the economy has brought more investors who were on the fence debating whether it is a good investment sector or not.
We discuss how NRIs investing in India can be of advantage:
1.Low property prices:
NRIs should take the opportunity of slow real estate market of the country and try to invest in it. The time is favourable for the same. The prices of the properties have always been higher in the country as compared to the western countries. This means, that the return on the investment will be higher in few years. India can offer more lucrative investment opportunities to the NRIs then other countries. According to Maharashtra Chamber of Housing Industry (MCHI, there was an increase in 300% of total supply of affordable homes in Mumbai as compared to last year. There has also been a rise of 27% of the total project launched in top eight cities in the country.
2.Tax exemption:
NRIs can invest in the real estate of the country and enjoy tax benefits just like every another Indian. NRIs can claim tax deductions on principal repayment and interest component. Also, if an NRI sells property two years after the date of purchase, then the profit is exempted from the tax deduction.
3.Income from the rental:
NRIs can rent the property in India without any issue. Thirty percent of TDS is deducted by the tenant; the remaining amount can be repatriated under the foreign exchange management rules. The income earned by the sale of the immovable property in the country can also be repatriated under the act.
4.Benefits of retirement:
A reverse mortgage is a more popular concept in U.S; India is still working on this system. While planning their retirement, NRIs can invest in India and take the advantage of reverse mortgage. The loan taken from the bank for this kind of mortgage is not taxable. This way, the aging NRIs can enjoy the benefit of owning a property in their home country while taking the loan from the banks as a part of the reverse mortgage.
NRIs are generally confused when it comes to investing in the country. Proper awareness of the laws and acts can help them get the best deal and enjoy the benefits.
We discuss how NRIs investing in India can be of advantage:
1.Low property prices:
NRIs should take the opportunity of slow real estate market of the country and try to invest in it. The time is favourable for the same. The prices of the properties have always been higher in the country as compared to the western countries. This means, that the return on the investment will be higher in few years. India can offer more lucrative investment opportunities to the NRIs then other countries. According to Maharashtra Chamber of Housing Industry (MCHI, there was an increase in 300% of total supply of affordable homes in Mumbai as compared to last year. There has also been a rise of 27% of the total project launched in top eight cities in the country.
2.Tax exemption:
NRIs can invest in the real estate of the country and enjoy tax benefits just like every another Indian. NRIs can claim tax deductions on principal repayment and interest component. Also, if an NRI sells property two years after the date of purchase, then the profit is exempted from the tax deduction.
3.Income from the rental:
NRIs can rent the property in India without any issue. Thirty percent of TDS is deducted by the tenant; the remaining amount can be repatriated under the foreign exchange management rules. The income earned by the sale of the immovable property in the country can also be repatriated under the act.
4.Benefits of retirement:
A reverse mortgage is a more popular concept in U.S; India is still working on this system. While planning their retirement, NRIs can invest in India and take the advantage of reverse mortgage. The loan taken from the bank for this kind of mortgage is not taxable. This way, the aging NRIs can enjoy the benefit of owning a property in their home country while taking the loan from the banks as a part of the reverse mortgage.
NRIs are generally confused when it comes to investing in the country. Proper awareness of the laws and acts can help them get the best deal and enjoy the benefits.
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