When the NRIs or the Non-resident Indians are investing in a property in their home that is not just an emotional decision. It is also a very strategic financial move. It is a way to stay connected to the roots and at the same time build assets in a rapidly growing market. For this kind of investment, it is important to have a thorough understanding of the Local Market, the legalities, trends and the financial nuances that are associated with owning the property. You can hire the services of the NRI real estate agents who will help to find the right property.
Tips to consider when NRIs are looking to Invest in Indian Real Estate
Given below are the tips that you should consider if you are an NRI and planning to invest in a Real Estate in India:
1. Understand the Legal Regulations
The transactions of the NRIs in India are governed by the Foreign Exchange Management Act or FEMA. The FEMA rules allow NRI, to purchase both residential as well as commercial properties in India without any kind of restrictions. They however, cannot buy plantation property, agricultural land or Farmhouse. It is necessary for NRIs to know about these rules and regulations so that they are compliant to these regulations and can avoid all sorts of legal complications.
2. Documentation and Verification
Documentation is a very important part of any property transactions. The documents that an NRI needs to invest in a property in India are PAN Card, Valid passport and an OCI/PIO card. Moreover, it is also important to verify the title and also ensure that all the legal clearances are in place. This will help you to avoid fraud. If you hire the services of reputed NRI real estate brokers, they will ensure that all your documents are processed.
3. Financial Planning and Funding
Financial planning is a very important thing that you need to consider, if you are buying a property in India. It is important for the NRIs to set up a budget and then start exploring the different funding options. It will be beneficial to open the NRE or the NRO accounts. This will be helpful as these will facilitate the remittance of funds for property transactions. Moreover, the Indian banks also offer home loans to the NRIs in India. These loans are specifically tailored to make it easier for financing properties. If you evaluate these financial tools and plan accordingly, that can simplify the entire buying process.
4. Tax Implications
If you are an NRI planning to buy property in India, it is important for you to consider the tax implications. The taxes on the properties include the registration fees and the stamp duty that vary from one state to another. The NRIs are also subject to capital gain tax if they want to sell the property. Therefore hiring the NRI real estate services from the best company will benefit a lot.
5. Make sure to select the right Location
As an NRI, it is important that you invest in a property that has a good location. Location plays a very important role in maximizing the investment potential. When investing, it is important that the NRI considers certain factors like the future growth prospects, connectivity and infrastructure development. Cities like Gurgaon attract NRI investment due to the robust Real Estate markets and also the NRI Property Management Services. If you are an NRI, you should conduct a thorough research in the various locations. This will help you make informed decisions regarding investing in properties.
Conclusion
When you are buying a property in India, as an NRI, it is surely a very attractive investment option. It however requires careful planning and consideration. This ensures proper documentation as well as planning the finances. It is important for the NRIs to be aware of the tax implications. They should also choose the right location for investment. If you hire the services of a good NRI real estate agents like Grrow Property Management, they will help you to manage your property and will also provide you with necessary legal assistance. These companies also facilitate a hassle free experience. Lastly, as an NRI, it is essential for you to understand the repatriating of the sale proceeds and this is essential so as to maximize the investment benefits.