14Apr

Keep these Aspects in Mind If you are Planning to Take NRI Home Loans

Owning a home is perhaps the biggest dream of the working class man. People toil for years to save enough money to be able to afford a down-payment into a place they can call their home. Some even leave the country to improve their prospects of owning a home, buy finding means to earn in countries with stronger currencies. Such individuals are called NRIs. Due to high conversion rates in foreign currencies, NRIs can save more and have a secure place to call their home when they return to their motherland. There is a huge scope for NRI investment in real estate in India. NRIs wishing to invest in a home in India must be aware of factors that make them eligible for a loan. Here is everything you need to know about procuring NRI home loans.

Type of NRI loans

If you are planning to invest in a property, then as an NRI you might want to consider applying for home loans. It majorly includes:

•    Upgrading an existing property
•    Property under construction
•    Construction of property on the land already owned
•    Ready to move in property

Loan Amount Can Be Availed

NRI loan amount is decided on a number of factors. It majorly includes income of the NRI, which should be consistent and steady. Besides, Gross Monthly Income is also taken into consideration. This further helps in deciding on the Monthly Equated Income or EMI. As the name suggests, an NRI has to pay on a monthly basis with certain amount as interest. Get in touch with banks and financial institutions for every agency tends to have different eligibility criteria.

Home Loan Tenure and Rate of Interest

It is vital to know that an NRI can avail home loan for a limited period of time. Say for example, 5 – 15 years. The extension for the nri property investment in india is dependent on the bank’s decision. The bank exercises its discretion regarding loan extension. However, for whatever reasons, if the bank does not comply, the loan must be repaid in the pre-decided, stipulated period. It is vital to know that the rate of interests on NRI home loan is high. So, seek expert help in case of any queries.

Documents Needed

To facilitate easy and hassle-free loan disbursals, NRIs must provide the following documents, as requested by the bank.

1.    Passport Copies
2.    Employment contract
3.    Salary Slips
4.    Valid work visa and permit
5.    Bank statements in NRO and NRE accounts

These are some factors every NRI planning to invest in Indian real estate with the help of home loan should be aware of. Go through the nri corner on the bank’s or realtor’s website or for more details.

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22Feb

NRI Property Investment – Types of Properties an NRI can Invest In

Indian real estate is a thriving industry. It has captivated the attention of every investor looking to make profitable purchases and reaping long-term benefits. The nature and scope of property investment is such that it remains a primary source of investment among both Residents and Non-Resident Indians. The latter earn in foreign currencies and make savings, converting their earnings into lucrative investments. The dynamic financial environment in India serves as a catalyst for NRI property investment.

What properties can an NRI invest in?

Before you decide on the property you wish to invest in, understanding the types of properties an NRI can buy is vital. NRIs can purchase as many residential, industrial and commercial properties in India as they please. However, this group of investors is not allowed to invest in or purchase agricultural properties, farm houses or plantations. These properties however, can be owned by NRIs if received as a gift or inherited.

Residential properties

Purchasing residential properties as an investment is the wisest decision an NRI can make, purely because these properties offer high returns. However, ensure you choose the right residential property based on location, market rates and other crucial factors. Residential land can be easily acquired either directly from the owner or also as part of a gated community. You can even consider purchasing apartments or flats which promises higher returns. You can earn cash flow by renting out these apartments. In order to earn good returns, you are advised to buy apartments in the pre-launch phase. Choose a location that has great returns. Seek expert help if you need to ensure the property you are investing in, is the right one.

Villas or independent houses

As compared to apartments, villas and independent houses have higher appreciation rates, for they have a larger area of land per square foot. Villas help you generate good returns in the later years. Many urban developers have been building societies and gated communities with row-houses and villas with good proximity to nearby markets. If you seek the help of realty companies like T Bhimjyani Realty, Lodha Group, Kanakia Group etc., you’ll find an NRI corner section on the web-page with all the information you may need.

Commercial Properties

Another property type an NRI can invest in is commercial properties. A lot of investors prefer commercial properties. You can get in touch with a real estate company if you require assistance about which commercial property to choose. Always remember that commercial real estate market is not the same as residential properties. Understanding the whole market scenario is vital before you invest in a commercial land or property.

Payment of the Properties

As far as payment for the properties is concerned, an NRI is required to make payments in Indian currency. All the payments should take place through traditional banking channels.

Go through the NRI corner on realty websites for more details.

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18Jan

NRI Property Investment – All You Need to Know

The Indian real estate sector is quite tricky. You need to have sound knowledge about it before investing in the right property. While the real estate sector in India appears as a sound investment tool to its residents, the Non-Resident Indian community is also intrigued by Indian real estate. There are a number of reasons for the growing interests of the NRIs in this sector particularly. Safeguarding retirement plans, the yield on investments, and better returns are just some reasons why NRIs prefer to invest in real estate in India. It is true that NRI property investment in Indian real estate has grown to a great extent. Here’s why.

No maximum cap on properties owned

As far as NRI property investment is concerned, there is no restriction on the number of properties an NRI can invest in India. According to Reserve Bank of India or RBI, an NRI is permitted to buy any commercial or residential property in India. Furthermore, an investor does not need to get any permission from the RBI for the same. However, you should know, there is a restriction on foreign investment when it comes to plantation property, agricultural land or a farmhouse. These types of properties are allowed only when they are gifted to or inherited by the NRI.

NRI investment in real estate

Financial Transactions and Funding
For any NRI investment in real estate, it is of paramount importance for the transactions to be carried out in Indian currency through Indian banks alone. All the transactions should only be done through Indian banking channels. This further calls you to use your NRO (Non-Resident Ordinary Rupee) or NRE (Non-Resident Rupee) account. Apart from this, you can even issue post-dated cheques or ECS (Electronic Clearing Service) from your NRO, FCNR (Foreign Currency Non-Resident) or NRE account.

Besides, an NRI can also get funding or financial help for the purchase, only if the paperwork is clear. If you are planning to purchase a property, and it is jointly held or inherited, ensure you get a no-due certificate. You can also get help from various home loan schemes available for NRIs. However, remember that you have to pay a minimum of 20% of the property value. An NRI can get loans from banks and housing finance companies that are registered with the National Housing Bank. As the loan is sanctioned in Indian currency, it is importance for an NRI to repay the loan amount in the same currency.

As far as documents are concerned, it is vital for the NRIs to have valid passport copies, a copy of currency, appointment letter, salary certificate, designation held and more. Now that you have all the information, ensure you invest rightly and wisely in the Indian real estate sector. Go through the NRI corner on your bank’s website for more details.

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17Dec

Vital Tips for NRIs Investing in Indian Real Estate

Warren Buffet once said, “Never depend on single income. Invest to create a second source”. Investing in a property is definitely a great option for it offers lucrative returns. When it comes to property investment, making the same in immovable property is definitely a great decision. Lowered interest rates, expansion of the economy and not to forget, increased disposable incomes only make an investment in an immovable property attractive. NRI property investment is all about taking the right decision and ensuring it is a wise one. Here are some tips that work great for an NRI investor who is planning to invest in the real estate market of India.

Know the purpose

As an NRI it is important to understand the risks before investing in the Indian real estate. You should have a purpose in mind as to what you plan to do with the property. If you are looking for great returns, then buying or investing in real estate units in a developed area, offers long-term returns and is a better solution than renting it out. Apart from this, NRIs can even purchase equity shares of listed real estate companies or developers.

Legal title and document checks

NRI investment in real estate should be made with complete care and precision. It is of paramount importance to check the legality of the property; after all, you definitely do not want to invite any legal hassles. Do not forget to get a confirmation from the current owner of the property, dig out the history, and know if there were any legal disputes and so on. Ensure the property you are investing in, is clear in every way.

Reputation of the developer

You are bound to seek help from a real estate developer or a company to find the right property for investment. Before you seek expert help, ensure the developer has a clean record. Ensure there were no past delays in project implementation from their side. A good bet for NRI property investment is to opt for reputed developers like Godrej Properties, Hiranandani Constructions, T Bhimjyani Realty, Piramal Realty etc.

Location

Location does play a major role when it comes to investing and choosing a property. You definitely do not want to invest in a property that does not yield much profit. Always go for a property that has rich and better infrastructure and necessary amenities nearby. This further helps in getting long term returns.

Tax implications

As an NRI, ensure you think through the tax implications that include TDS, taxes, rental taxes, and so on. Seek help from a tax attorney for any information. To avoid short-term capital gain tax, it is important to stay invested for at least three years.

Consider these tips to make your investment in the Indian real estate count!

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16Nov

NRI Property Investment – Can They Invest in Immovable Property In India?

Everyone is quite aware of who an NRI is. As far as property purchase is concerned, a Non-Resident Indians or NRI can purchase a property or house back in India. An NRI can purchase any type of property in India. An NRI can buy or receive an immovable property as a gift without the permission from the Reserve Bank of India or RBI. As far as purchasing an immovable property is concerned, the funds can be easily forwarded out of India, subject to foreign exchange.

NRI property investment requires a lot of planning and thinking. The real estate market has always proved to be lucrative as far as investment is concerned. It offers opportunities for investors to explore the real estate market that offers high returns. Both residents of India and Non-Resident Indian can invest in the immovable property.

Purchase and Inheritance of the Immovable Property

Generally, both the Person of Indian Origin (PIO) and Non-Resident Indian (NRI), are allowed to receive by way of gift or buy any immovable property in India. Besides, it is not necessary to seek permission from the Reserve Bank of India or RBI for the same. However, it is vital to seek permission from the RBI if an NRI wishes to purchase an agricultural land, farm house or any plantation property. Furthermore, both the PIO and NRI are allowed to inherit the any of the immovable property including an agricultural land and so on. Besides, you should also know that there is no restriction on the number of properties an NRI or PIO can invest or purchase.

As far as the payment is concerned, it is important to have been received in India through traditional banking channels through inward payment from any place outside India. Or the funds that are held in Non-Residential External (NRE) account, Non-Resident Ordinary (NRO) account or Foreign Currency Non-Resident (FCNR) account maintained in India.

Transfer of Immovable Property

As far as NRI investment in real estate is concerned, an NRI can transfer any of the immovable property by way of gift or sale to the residents of India or NRIs. However, if an NRI owns an agricultural land or farm house, then the same should be transferred to people of Indian origin alone.

To conclude, NRIs can acquire immovable property in India through inheritance from an individual who is a resident of India. Furthermore, the same can be transferred only with prior permission from the RBI. Go through the NRI corner if you have any queries.

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25Oct

NRI Property Investment – Can an NRI Own or Purchase Indian Property

Under the guidelines of Reserve Bank of India or RBI, a Non-Resident Indian or NRI can purchase certain types of properties. However, form some type of realty, an NRI will require special permissions. A Non-Resident Indian who is interested in investing in the Indian real estate should be aware of the legal provisions that pertain to both purchasing and owning of immovable property under the Foreign Exchange Management Act (FEMA). NRI investment in real estate should be made keeping in mind a number of aspects.

Types of Properties an NRI or Persons of Indian Origin (PIOs) Can Invest In:

A general permission is given to the NRIs through a circular an NRI has a special by the Reserve Bank of India or RBI to purchase any commercial or residential property in India. For the same, an NRI need not send any communication or intimation or seek any special permission from the RBI. As far as existing general permissions are concerned, an NRI can purchase any number of commercial and residential properties back in India. Apart from this, an NRI is also allowed to own any number of commercial and residential properties under the Income tax laws. In case, an NRI is not able to make it to India, the documents for the purchase can be submitted by a person, who has a valid power of attorney. Under the Reserve Bank of India’s general permission, an NRI property investment cannot be made on plantation property or agricultural land in India. An NRI will have to seek special from, NRI if he/she wants to buy a plantation or farmhouse.

Continuance of Property Ownership, After an Individual Becomes an NRI

You are bound to wonder if the situation where a person who already owns properties in India and subsequently becomes an NRI. Well, in such a situation the person can continue holding the properties in his/her name in India. Besides, an NRI can even continue owing plantation property, farmhouse or agricultural land, that he/she earlier owned. Apart from this, the individual can even let out the property. However, the rent received from such properties can be sent only after appropriate Indian taxes have been paid.

Joint Ownership

Not many know, but an NRI can buy a property in India as a single owner or jointly, with other NRI. You should know, a resident Indian cannot become a joint holder who is not allowed to invest in the Indian property.

Similarly, an NRI is also allowed to gift or sell an immovable property to any person of Indian origin. Besides, a resident Indian can also transfer or gift the property, other than farmhouse, agricultural land or plantation property to a Non-Resident Indian.

Go through the NRI corner for more details.

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12Sep

NRI property investment – Know the Dos and Don’ts

The real estate market is considered to be a fine investment, and hence you will find Non-Resident Indians or NRIs investing in the same. No matter what the market rate is, real estate is considered to be a lucrative option. Well, apart from exercising essential due diligence, it is of paramount importance for the NRIs to adhere to the laws and regulations related to NRI property investment, no matter whether you are selling, buying or renting a property. The realty market in India has always been a perfect investment spot. Well, an NRI can choose from a large range of options in both commercial and residential segments.

Here is how an NRI planning property investment in India can benefit:

Tax exemption

Not many know, but Non-Resident Indians (NRIs) can easily invest in India and yet manage to save tax just like a resident of India. An NRI can claim a tax deduction on principle repayment and interest component on the home loans. Besides, the property sold after two years from the date of purchase, profit earned on the capital gain is excused from the income tax.

Property Prices Are at the Lowest

As an NRI you are advised to make the most of the slow real estate market. It is not that the real estate market is bound to be steady all the time. While the prices are down, make the most of it by investing in the right property. A lot of investors tend to wait for the prices to go down, which happens rarely. However, you can definitely benefit from the same.

Rental income

An NRI can invest and also earn rental income without any hassle. Though 30 percent of Tax Deducted at Source or TDS has to be deducted by the tenant, the outstanding sum can be repatriated under the Foreign Exchange Management Act (FEMA) rules.

Retirement Benefits

Well, though the concept of a reverse mortgage is popular in the US, India is still gearing up for the same. NRIs planning their retirement can easily invest in India and procure benefit of the reverse mortgage. The sum acquired from the bank for this mortgage type is not considered in the taxable income of an NRI. In this way, a retired NRI can enjoy the benefits of the NRI investment in real estate. Apart from this, an NRI can even take money from the banks as a part of the reverse mortgage of the property.

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13Aug

Checklist for Safe NRI Property Investment in India

A Non-Resident Indian or NRI planning to invest in the Indian real estate should be aware of a number of factors. A lot of research and careful planning is involved to ensure your investment does not go to waste. Indian real estate is quite popular among the NRIs as it is a great investment option. However, as they live abroad, it becomes important for them to do proper due diligence before investing in any property. NRI property investment is all about taking right measures and precautions.

Some Mandatory Checks

You will find a lot of real estate developers conduct roadshows abroad. However, as a potential investor, you are advised to not entirely rely on and be convinced with the glossy brochures and presentations. After all, it is a huge one-time investment and should be done keeping all the facts in place. To ensure the property they are investing is reliable, an NRI can ask someone check the ground realities and visit the property’s site. Like all the real estate investments, the location of any project plays a prominent role, and hence it should be attractive with better connectivity solutions.

Another vital issue is pricing, which cannot be neglected. Not many notices, but a lot of time, the prices quoted by the developers to the buyers abroad are higher as compared to the one’s quotes to domestic buyers. You are advised to be aware of the same. You can cross-check the prices with an Indian. Apart from this, not all the builders tend to offer discounts when selling a property abroad. Be aware of these aspects as you do not want your investment to go waste. Considering this aspect, the buyer should be aware of the rates at which the project is sold in India. Apart from this, an NRI should also avoid paying a large part of the cost upfront. To be on the safe side, investors should opt for ready-to-move or finished apartments.

An NRI is advised to take a small bank loan, even if not needed. One of the major reason is that when an NRI takes a loan, the bank does the due diligence on their behalf. The bank will check whether the developer or builder owns the land and whether he has the requisite licences.

Understand the Law

An NRI investing in India should be aware of the law that governs the real estate transactions. Besides, an NRI should also know, whether the profits are subject to double taxation.

ROI Expectations

An NRI investing in the Indian real estate market should have reasonable return expectations over a longer period.

Now that you are aware of all the aspects of a safe investment do make a wise one. Go through the NRI corner for more details.

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24Jul

Vital Things to Know About NRI Property Investment

For many, investing in real estate is considered to be a lucrative investment option. A Non-Resident Indian or NRI too consider this option to be a lucrative one and invest in various properties of India. An NRI can invest in any property, both commercial as well as residential. Besides, there is no restriction on the number of properties an NRI can invest in. One can invest in an agricultural land, a farmhouse or even plantations. However, the ownership of the agricultural land should be inherited.

Here are some things you should know about NRI investment in real estate:

No RBI Approval Required

One of the greatest aspects an NRI should know about property investment back home is that there is no approval required from Reserve Bank of India or RBI. In order ease the process of NRI investment, RBI has taken down the norms for the same. An NRI can directly invest in Indian real estate without any hassle. All thanks to the automatic route for NRI investment in India. Besides, this handling has gained immense popularity overseas, thus making India a great and lucrative investment destination. An NRI can own a property back in India by way of:

•    Gift from a person who is a resident of India
•    Inheritance from the person resident outside India who has acquired such a property in agreement with the foreign exchange law in force.

An NRI can Buy, Sell and Rent Properties

Apart from buying, an NRI can even sell or even rent an apartment. However, it is important to know that the rent proceeds should be credited to Non-Residential Ordinary Rupee (NRO) or Non-Resident Rupee (NRE) account only. Furthermore, all the rents received in these accounts can be freely and easily repatriated. In case, you do not have an NRE or NRO account; then the proceeds should be done directly abroad. However, for the same, an NRI should have an appropriate certificate from a chartered accountant that certifies al the taxes have been paid on time.

Tax and Registration

Now that you have decided to make NRI property investment ensure you know the charges incurred by an investor. It majorly includes stamp duty, property tax, and registration fees. In order to ensure all the paperwork is carried out smoothly, it is vital to hire an accountant. The expert will take care of all the paperwork and property tax.

These are some of the aspects every NRI planning to invest back in India should know. You can go through the NRI corner for more details.

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21Apr

2 BHK flats in Thane – A blessing in disguise

There is a sea of options when it comes to buying newly constructed 1 or 2 bhk flats in Thane. These apartments are fully equipped and are located in the highly developing areas of the district. This makes these housing developments a great adobe for people willing to lead a balanced lifestyle. The area is neither too crowded nor too deserted. The extremely well-planned connectivity and access to civic amenities make this region one of the best for modern living. Let’s go over the following benefits of investing in a real estate project in Thane.

Easy Access to the City:

There are numerous real estate companies in Thane that have housing complexes in centrally located areas. These localities are connected to the main city from all ends. You could either take the Eastern Freeway on one side or take the Ghodbunder Road that connects you to the western suburbs of Mumbai. There are many flyovers and highways that merge at Thane making it a highly commutable area.

Scenic Views All Around:

Thane is a locale surrounded by luscious hills and creeks. This creates an opportunity for property builders to construct homes with scenic views of bountiful nature. You will find hill facing, creek facing, and forest facing homes that strike the right balance between man-made and nature-made wonders.

All Kinds of Civic Amenities:

The area also has all sorts of civic facilities including renowned schools, colleges, multi-specialty hospitals, entertainment hubs, supermarkets, technology parks and more. They are the life and soul of any vicinity that fuels satisfied living. This is why buying 1 or 2 bhk flats in Thane is a blessing in disguise. It brings about a world of opportunities and amenities that facilitates a wholesome residential experience.

Amazing Price Ranges:

This is another perk of purchasing a property in Thane. The price ranges are much more favourable as compared to the suburbs in Mumbai. If you are looking for spacious homes at affordable ranges, this area is sure to fit the bill. There are various realty dealers in this zone that offer a wide range of enticing property options. The price ranges are constant in all the regions of the district.

These are the major advantages of buying a home in Thane. The development projects are great for domestic as well as NRI property investment. It is a wise decision for a buyer to invest in a residential property in this vicinity. However, it is also vital that you make a comparison of the offerings by different dealers and builders and to do a background check of their previous deals.

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