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.
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.