NRI Investors Must Consider These Issues
Jun 02, 2017 Home Trading Steps
Indian property market has always attracted non-resident Indians (NRIs) as a source of lucrative investment. The new laws and tax system have further simplified the process and made it safer. The government has also taken steps towards increasing affordable housing. All these contribute to a scenario which facilitates NRI’s to invest in India with many options in the market.
In case of NRI’s, there is always a risk perception because of their physical distance from the property. To make these investments risk-free, some points must be taken care of.
Here are some issues one must consider before taking the plunge.
The investor must find out all the details about the developer and make sure that the investment would be safe. With the Real Estate (Regulation and Development) Act (RERA) being enforced by the government from May 1, it would become mandatory for all developers to register with the RERA authority and provide all the details of their company and the property. This will make it difficult for unlawful and unauthentic property developers to make their way in the market. The investor must check the details of the developer before finalising on the project. It is advisable to rely on a well-established developer whose track record is good.
Usually, landlords living abroad need to appoint representatives in India to manage the property in their absence. There have been a number of cases reported where the owners were cheated by their representatives in India. In such cases, the Power of Attorney is misused. There are rules and regulations in place to prevent such cases, but the investor must exercise caution. Thus, it is important to trust close family or friends with this responsibility. In case there are no such family or friends to rely upon, such services can be hired. These representatives are bound by contracts and the risk involved is minimal.
The NRI landlords must also make sure that the tenant chosen to live in their property is genuine and their identity must be verified. This will ensure that the premise is not being used for an illegitimate purpose. Also, the tenant must have a stable source of income to be able to pay the rent on time. For this purpose, it is suggested to have a personal meeting with the person or at least a telephonic conversation. The representative of the landlord here in India must investigate the personal details of the individual carefully before finalising the tenant.
In case of NRI’s, there is always a risk perception because of their physical distance from the property. To make these investments risk-free, some points must be taken care of.
Here are some issues one must consider before taking the plunge.
The investor must find out all the details about the developer and make sure that the investment would be safe. With the Real Estate (Regulation and Development) Act (RERA) being enforced by the government from May 1, it would become mandatory for all developers to register with the RERA authority and provide all the details of their company and the property. This will make it difficult for unlawful and unauthentic property developers to make their way in the market. The investor must check the details of the developer before finalising on the project. It is advisable to rely on a well-established developer whose track record is good.
Usually, landlords living abroad need to appoint representatives in India to manage the property in their absence. There have been a number of cases reported where the owners were cheated by their representatives in India. In such cases, the Power of Attorney is misused. There are rules and regulations in place to prevent such cases, but the investor must exercise caution. Thus, it is important to trust close family or friends with this responsibility. In case there are no such family or friends to rely upon, such services can be hired. These representatives are bound by contracts and the risk involved is minimal.
The NRI landlords must also make sure that the tenant chosen to live in their property is genuine and their identity must be verified. This will ensure that the premise is not being used for an illegitimate purpose. Also, the tenant must have a stable source of income to be able to pay the rent on time. For this purpose, it is suggested to have a personal meeting with the person or at least a telephonic conversation. The representative of the landlord here in India must investigate the personal details of the individual carefully before finalising the tenant.
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