Buying a property in India has become safer and more lucrative for non-resident Indians (NRIs). Thanks to the Indian Government’s initiative to regulate the real estate sector through RERA, which brings more transparency and accountability in this sector.
The number of NRIs buying real estate properties in India for investment and personal use are growing. Investing in real estate can give NRIs the benefit of earning a high return on their right investment.
If you are an NRI and aren’t sure about which property to invest in, check Ashwin Sheth Group’s residential properties in Mumbai. Our exclusive range of premium homes are located in some of the prime locations in Mumbai, can help you find the right property for real estate investment. However, NRIs should consider a few things before investing in real estate in India.
Type of property to invest
NRIs can buy any number of properties in India, including residential and commercial. However, they cannot invest in agricultural land, farmhouses, and plantation property unless it has been gifted or inherited by them.
Choosing a reputed developer
Choosing the right developer with a good reputation in the real estate industry is extremely important. You may not be physically present to check the status and the quality of the real estate property. Therefore, a trusted developer is needed to invest in. A good developer will have all the necessary clearances and certifications required, which will help you accelerate the process of buying your property.
Foreign exchange regulations
NRIs who want to invest in real estate need to abide by the Foreign Exchange Management Act of India (FEMA) regulations. The Reserve bank of India (RBI) has simplified the rules, making it easier for NRIs to buy properties. NRIs holding a valid Indian passport need no approval to invest in real estate.
Prepare to file IT returns in India
NRI buying a property in India needs to pay the property tax along with stamp duty and registration fees according to Indian laws. Therefore, accessing all the costs is crucial before planning an investment. It is advisable to get a PAN card before making an investment to ease financial procedures later.
If you earn rental income in India, it will be counted in Income tax. So, you need to hire a professional to file IT returns in India and for all the legal paperwork.
Like any other Indian citizen, even NRIs can apply for a home loan in India but need to repay the loan in Indian Rupees only. They can get a home loan up to 80% of the value of their property.
Mode of Payment
NRIs can make payments through inward remittance, non-resident rupee (NRE) accounts, non-resident ordinary rupee (NRO) accounts, or foreign currency non-resident (FCNR) deposit accounts.
Power of Attorney
Power of Attorney (POA) is required by NRIs who cannot be physically present in India at the time of the property transaction. It allows NRIs to transfer their legal rights to their relatives or trusted friends to complete all property-related procedures on their behalf. POA can be used for mortgaging, leasing, selling, borrowing, renting, and so on.
If you are an NRI who wants to invest in real estate in India, you can consider buying commercial or residential properties in Mumbai. Ashwin Sheth Group is constructing premium homes in Thane, Mulund, Kanjurmarg, and Andheri. With so many options available, you can choose to invest in the best residential property that increases its value over time.