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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