What NRIs should do or Not do while Investing in Real Estate Market of India
Feb 20, 2018 Home Trading Steps
Indian realty market has always interest NRIs in terms of a lucrative investment avenue as they get ample of options to choose from and developers also do not keep any stones unturned to attract the NRIs. Developers keep on coming up with attractive offers like flexible payment plans, subvention schemes and much more to woo their NRI customers. Apart from being extra cautious,
NRIs also need to cautious about and follow certain rules and regulations while investing in the real estate market of India.
•An NRI can buy or sell a property by coming to the country or if he or she can’t come then the NRI can give the Power of Attorney to any of his or her relatives and get the transaction done.
•NRIs are also eligible to avail home loans in India. But the documents required for the home loan may differ as per the country they are settled in. The loan amount depends on the factors like age, education; income etc. Usually, the loan term for NRIs will be 10 to 15 years
•In order to finance the purchase of the property, NRIs should use -resident external (NRE) account, as this will help them to take back the capital invested when they will resell the property.
•NRIs can also use their additional income to invest in a second home once their primary residence is secured. They can buy a second property to earn rental income. But in that case, they need to be aware of the bye-laws and regulations in terms of taxes because in India rental income is taxable.
•If an NRI is coming to India and checking the project then he or she buy as per his or her preference. But if an NRIs is not visiting then the NRIs should only buy from credible developers. Because a lot of time buyers have lost their money by investing in wrong projects in terms that those projects lacked in necessary clearances and are not at par even with the minimum standards of living.
•However in any case, whether the NRI is visiting or not visiting India, he or she should always check the track record of the builder, amenities available in the project, the social and civic infrastructure present in the location as well as timelines of the project completion.
•NRIs should remember that the project that is targeted towards them is no different than the other projects. Hence they should always evaluate a project with respect to builder’s image in the market, its legal validity, location and amenities on offer.
NRIs also need to cautious about and follow certain rules and regulations while investing in the real estate market of India.
•An NRI can buy or sell a property by coming to the country or if he or she can’t come then the NRI can give the Power of Attorney to any of his or her relatives and get the transaction done.
•NRIs are also eligible to avail home loans in India. But the documents required for the home loan may differ as per the country they are settled in. The loan amount depends on the factors like age, education; income etc. Usually, the loan term for NRIs will be 10 to 15 years
•In order to finance the purchase of the property, NRIs should use -resident external (NRE) account, as this will help them to take back the capital invested when they will resell the property.
•NRIs can also use their additional income to invest in a second home once their primary residence is secured. They can buy a second property to earn rental income. But in that case, they need to be aware of the bye-laws and regulations in terms of taxes because in India rental income is taxable.
•If an NRI is coming to India and checking the project then he or she buy as per his or her preference. But if an NRIs is not visiting then the NRIs should only buy from credible developers. Because a lot of time buyers have lost their money by investing in wrong projects in terms that those projects lacked in necessary clearances and are not at par even with the minimum standards of living.
•However in any case, whether the NRI is visiting or not visiting India, he or she should always check the track record of the builder, amenities available in the project, the social and civic infrastructure present in the location as well as timelines of the project completion.
•NRIs should remember that the project that is targeted towards them is no different than the other projects. Hence they should always evaluate a project with respect to builder’s image in the market, its legal validity, location and amenities on offer.
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