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:
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.
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.
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.