13Feb
By In NRI Property Investment

6 Smart Tips For Nris Investing In Indian Real Estate

Real estate investment has the potential to generate higher returns by both capital appreciation and rental yields. When it comes to investing in real estate, people have an array of options to choose from apartments to luxurious villas and so on. Such opportunities are not just restricted to the Indian residents but also Non-Indian Residents (NRIs) as well, as per the Foreign Exchange Management Act (FEMA) rules.

An NRI property investment in India are of 3 kinds:

•    Commercial properties
•    Residential properties
•    Villas/bunglows

However, they cannot invest in agricultural land, unless inherited by the ancestors. NRIs investing in Indian properties is not an easy task, owing to the lack of proximity.

To make NRI property investment in India a hassle-free procedure, one should keep the following tips in mind:

1)    Purpose of investment: Before investing in any property, the NRI should understand their risk appetite and spend with a clear purpose. If the ultimate goal is all about returns, they can get it by purchasing flats in developed areas and then renting them. The second bit is a retirement home. In such scenarios, NRIs can look for flats in Thane, which is a developing area.

2)    Developers credibility: It is imperative for the NRI to do a thorough check of the track record that the chosen builder holds. Mere research would not be sufficient. The record should include past delays in project implementation, and history of complying with the RERA laws that indicates the reputation of the builder.

3)    Enquire about home loan: In India, housing loan involves lengthy documentation process. However, it is not the same when it comes to NRI property investment in India. Some banks offer pre-approved credit for certain developers, especially those who have held a decent track record previously. This ensures the investment is worth every penny and fulfils an NRI’s dream of acquiring their dream home.

4)    Understanding taxes: NRIs should have proper knowledge of the tax implications in India at the time of investment such as rental taxes and property taxes. Experts recommend NRIs to remain invested in the property for at least 3 years to avoid short-term capital gain tax.

5)    Verification of legal documents: It is advisable that the NRI checks the legality of the asset. The NRI should be informed of the current owner, its history, legal disputes if any, and local regulatory approvals. Ensure the home adheres to all legal aspects before signing the deal.

6)    Location: One of the crucial aspects while investing in India is the locality. Be it short-term or long-term investment, developed or developing area, they should have basic amenities in a place like proper infrastructure, hospitals, educational institutes, connectivity, shopping centres, etc.

For NRI property investment in India, one should hire a Power of Attorney who can overlook the process in the NRI’s absence. One could also hire a good property manager or broker for better clarity.

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11Nov
By In NRI Property Investment

Simple tips for NRIs looking to Invest in Indian Real Estate

Investing in real estate is considered one of the most lucrative and profitable investments one can make. With the ever-rising rates of properties, one can book a considerable profit by holding on to a property for just a short period of time. Ever since the Indian government has relaxed several real-estate related rules, such as the Real Estate (Regulation and Development) Act of 2016 and rules on pre-closing home loans, the real estate sector has begun to find more takers. In fact, Non Resident Indian or NRI investment in real estate has increased tremendously in the last few years. If you are an NRI looking to invest in the Indian real estate sector, here are some tips for you.

Begin by doing your research: The process of buying a home is a long and complicated one. You have to first do your homework. This simply means that you need to invest time in finding the right real estate company before you invest money in one of their projects. Start your NRI investments in real estate by considering the location of the property, whether it is newly constructed or under-construction, as well as the age of the property in case of older properties. You must also determine whether the real estate company will help you procure a home loan or if you need to find finance on your own.

Ensure you choose the right property and builder: It is important to consider real estate companies that have years of experience and client recommendations backing them. Let’s say you wish to invest in one of the under construction projects in Thane; in that case you must consider builders like T Bhimjyani Realty, Lodha Group, Piramal Group etc., who come with excellent client reviews and projects to their credit.

Consider the location: You must also consider the location where the project is being developed and the future value of the said location. For instance, if you are looking to purchase a property in Mumbai, you could consider the Thane neighbourhood. New construction in Thane in the last decade includes several commercial and residential projects with great amenities. You also get close assess to some of the most important civic facilities be it educational institutions, health-care institutions, shopping malls, entertainment centres etc. All these facilities directly contribute to the rise of the value of your property, since property rates increase as the area continues to develop.

Read up information pertaining to NRI investments: Every real estate company has a special section of their website dedicated to answering questions pertaining to NRI investments. This is known as the NRI corner. The section answers some of the most basic questions about NRI investment in India such as who qualifies as an NRI, POI (Person of Indian Origin) and OCI (Overseas Citizen in India). Other FAQs answered in this section include eligibility, regulations, documentation, taxation etc. The section also provides details about financials and loans for NRIs and repatriation funds.

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18Oct
By In new residential projects in Thane

Top Localities For NRI Investment In Mumbai

India’s real estate sector has been attracting the attention of Non-Resident Indians for quite a while now. Every Indian settled abroad knows the value of real estate in India’s poshest cities be it Mumbai, Delhi, Chennai or Bangalore. Mumbai especially remains a favourite of NRIs, thanks to its position as the financial capital of the country. NRIs, who earn in currencies, superior than the Indian Rupee (INR) find it much easier to invest in real estate in Mumbai. Whether you choose to invest in new residential projects in Thane, Suburban or Southern Mumbai, you can rest assured that your investments will definitely yield high returns. Here are the top localities for NRI investment in Mumbai.

Bandra West: Bandra West is one of Mumbai’s poshest neighbourhoods and is the preferred locality for individuals with high incomes at their disposal. From Hill Road to Turner Road and Linking Road to Carter Road, Bandra West is a real estate goldmine. This neighbourhood is well connected to other parts of the city, making it the perfect locality for NRI property investment in India.

Dadar West: There is a reason that Dadar, especially the West of Dadar is regarded as the heart of Mumbai. This Mumbai neighbourhood enjoys close proximity to central and western railways, with one of the biggest railway stations in the city. Dadar is also packed to the rafters with several budget shopping arcades, huge markets, schools, hospitals and all other necessary amenities, making it an ideal choice for NRI investment.

Thane West: With some of the best real estate giants in the city backing exceptional projects, Thane West has become one of Mumbai’s favourite localities for real estate investment. New projects in Thane Ghodbunder Road and other Thane West areas by builders like Hiranandani Constructions, T Bhimjyani Realty, Godrej Properties etc., are known for their fantastic infrastructure and modern amenities. Thane is also one of the rare Mumbai neighbourhoods where investing in real estate is affordable but the yield of returns is very high.

Colaba: Colaba has forever been known as the locality where the crème de la crème of Mumbai’s business world reside. One of the poshest South Mumbai localities, Colaba is best known for its sky-rise buildings and tall skyscrapers. This uber Mumbai locality is catching more traction, thanks to the upcoming Metro III project that has already begun in the locality. Now is the right to invest in Colaba, before the property rates start sky-rocketing.

Andheri: Andheri in suburban Mumbai is known for being one of the best neighbourhoods in the city, which is well connected to all other parts of the city. Besides being a starting and terminating station for local trains on the western and harbour lines, the Andheri-Ghatkopar Metro has also made it convenient to travel to any part of the city within minutes. NRIs can consider any part of Andheri for real estate investments. Just visit the NRI corner on the website of your chosen developer.

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10Sep
By In NRI Property Investment

5 Things an NRI should know before investing in Indian Real Estate

In the last few years, the Indian Government has relaxed many laws pertaining to NRI investment in real estate. These new laws have made it easier for NRIs or non-resident Indians to purchase property in their mother-land. This has resulted in the popularity of the foreign investment market. However, there are a few things that NRIs ought to be aware of before they consider investing in India’s real estate market. These pointers may give Indian passport holders residing abroad the confidence to purchase a property while ensuring they do not break any government laws.

Type of property that can be purchased: NRIs are allowed to purchase, both residential as well as commercial properties. There is also no restriction on the number of properties NRIs can own. However, they cannot purchase agricultural lands, plantations or farmhouse. The only case in which an NRI can own agricultural land is if he/she receives it as a gift or as part of his inheritance.

Number of investments: An NRI is allowed to make any number of investments as there are no restrictions. The investment can be made on their own or with the help of a relative appointed as a power of attorney. For instance, the NRI can hand over his power of attorney to a relative to purchase more than one under construction projects in Thane, Mumbai, Delhi, Kolkata or any other city or town within India.

Availability of loans: While resident citizens find it extremely easy to procure a home loan from Indian finance companies, the same benefit is also extended to NRIs. Yes, NRIs can now easily avail housing loans like any normal resident Indian. However, the documentation process for loans offered to NRIs is quite different as that for resident citizens. You can find out all the details about the documentation process on the NRI corner tab of the lender as well as the realtor’s website.

The need to file returns: Whether you are an NRI or a resident citizen, if your annual income exceeds ₹2,50,000, you are expected to file income tax returns. For instance, say you rent out your NRI investment in real estate home to a resident Indian and are earning over ₹3,00,000 in annual rental income, then you fall under the tax payer’s slab.

Tax benefits: If an NRI chooses to purchase a home in India, he/she is entitled to all the tax benefits which are made available to resident citizens. NRIs can claim an annual tax deduction of up to ₹1,00,000 as per Section 80C of the Income Tax Act of 1961. NRIs are only taxed for the income earned or collected in India through rental income or any other salary earned in India and not on their foreign earnings.

You can get all the details pertaining to NRI investment in real estate on the NRI corner tab of the real estate company’s website.

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12Aug
By In new residential projects in Thane

Looking to profit from your residential property investment in Thane? Learn How

Real estate investments have globally proven to be a rewarding investment class. It is also gaining momentum in India, and is set to grow at an estimated rate of 30% in the decade to come. In 2017 alone, the real estate industry in India grew by approximately 7%. However, earning money from your real estate investments can be, both enticing and tricky. So it is important to understand the factors and the market that makes it possible for you to profit from such investments. Whether you are looking at NRI property investment in India or to earn rental income, you can profit from your investment simply by following the below steps.

Begin by finding the growth corridors: Investing in properties in cities like Mumbai, Bengaluru and Pune has yielded profitable returns in the past few years. But while location is one of the necessary factors in property investment, it should not singularly drive your basis for investment. It is necessary, to consider the available growth corridors. A growth corridor is essentially a property which compliments easy transit routes, educational and health care institutions, shopping centres and other public spaces. In a city like Mumbai, you can consider investing in new projects in Thane Ghodbunder Road, which has become the up and coming neighbourhood thanks to real estate giants like Hiranandani Constructions, T Bhimjyani Realty, Lodha Group etc., who’ve come up with some great residential projects, all in close proximity to the aforementioned amenities, making it a lucrative growth corridor.

Consider the rental income: If your purpose of investment is to yield rental income, real estate is a good option as it can contribute to both, capital appreciation in the long run, and help you pay a part of your EMI, if you’ve purchased the home on a bank loan. Investing in locations which are connected to economic opportunities always offers better returns. The upcoming metros and the already established international schools, health care and hospitality centres makes investing in new residential projects in Thane even more attractive to the renter, who can have easy access to all the amenities and facilities nearby. Besides, Thane’s new role as the Silicon Valley of Mumbai has contributed to its position as a great Mumbai locality for rental income.

Consider the hold period: As a locality grows an upgrades, it draws an increasing demand from investors and homebuyers. But you must remember that every property goes through its ups and downs; you won’t always see sustained growth in a single location, even if it is in posh areas like Colaba, Bandra or Juhu in Mumbai. As such, the ideal period of time for one to remain invested in a property is about 4-5 years, or longer is possible. During this time, fluctuations are normal but a patient investor is guaranteed to earn a profit. NRIs looking to invest, can find out more about the property’s growth by visiting the NRI corner.

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8Jul
By In NRI investment

Thane – A Growing Mumbai Hub That has the Rich Intrigued

In the last few years, the Mumbai neighbourhood of Thane has flourished and how! Gone are the days when Thane was considered the last option for home-buyers who could afford homes on a tiny budget. Today, Thane is regarded as one of the most happening parts of the city of dreams with some of the best infrastructure and amenities. This phenomenon has not escaped the rich of Mumbai who are investing in several under construction projects in Thane, whether it is in the residential or commercial space. Here’s why this mini-city has been receiving a lot of attention lately.

The vast land bank: There was a time when Thane mainly consisted of factories and industrial estates. The smoke-emitting industries kept investors at bay because there didn’t seem any scope for a return on investment. But with the factories shutting down and the industries ceasing operations, developers like Lodha Group, T Bhimjyani Realty and Piramal Realty took over the land, began new construction in Thane and converted it into expansive residential and commercial complexes. With factories paving way for new projects, the availability of this vast land with potential became evident.

Employment opportunities: Thane is one of those prime areas of Mumbai, which is coming up with several offices. Many companies prefer to have a base in Thane because they have to pay considerably low rents for bigger spaces which can accommodate several employees. This also makes it easier for the locals to find employment opportunities in this area. Tata Consultancy Services is a great example of a multinational corporation which has leased 2 million square feet area in Thane, opening doors for employment. Besides several IT companies are also moving to Thane making it the Silicon Valley of Mumbai.

Good prospects for growth: Land availability, great connectivity due to metro projects and state of the art infrastructure, together have raised an interest among local and NRI investors. In fact NRI investment in real estate in Thane is at an all-time high. Areas like Ghodbunder Road, Kasarvadali, Majiwada etc., boast of the best schools and health care facilities. They are also known for their commercial projects like shopping malls and multiplexes.

Great properties at lower rates: Despite the boom in Thane with its fantastic growth prospects and superior quality of infrastructure, Thane continues to remain much more affordable when compared to other posh localities of Mumbai like Colaba, Nepean Sea Road, Juhu or Bandra. It is one of the few Mumbai localities which boast of everything from fantastic green cover and lakes to top-notch educational and health care facilities, where you can purchase spacious, affordable homes.

All these factors make investing in Thane a very smart decision. Both locals and NRIs must give a serious thought to investing in a project or a property in Thane as the area holds great prospects for development. NRIs can find more information about the same on the NRI corner of the website of the builder.

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7Jun
By In new residential projects in Thane

The NRI’s guide-book for property Investment

Most Non Resident Indians (NRIs) hear stories from friends and family in India who’ve made tremendous profits in the real estate industry. This makes them deliberate using their savings in foreign currencies to purchase real estate in their home country. But most of them are not familiar with the rules and regulations of real estate investments, which let’s face, it can be pretty complex. Since NRI property investment in India is extremely lucrative, we’ve listed out some points that can facilitate your decision to invest in the sector.

Why should NRIs invest in Indian real estate?

In the recent years, investors have earned over 20% annual returns in the Indian real estate industry. Real estate investments help grow your corpus rapidly, if invested in localities with high-growth potential. The growth in India’s, particularly Mumbai’s urban areas, coupled with the influx of people from different parts of the country has paved the way for Mumbai to emerge as one the largest contributors to world economy. Mumbai’s Thane area particularly, is seen as a profitable site for real estate development with several state-of-the-art residential and commercial complexes being planned. Investing in new residential projects in Thane can prove extremely fruitful and yield great returns for NRI investors, since they are in a unique position to take advantage of this situation.

What are the best places in India for NRIs to purchase property?

Suffice to say that not all property markets yield equal returns. NRIs must examine the nitty-gritties of the market in which they wish to invest. A good rule of thumb is to invest in cities that have a fast population growth with continual influx of people. Also, investing in cities where people make the highest incomes, but the property prices are such that an average middle-class man can afford, is a safe bet. Investing in the countries metro cities like Delhi, Chennai, Kolkata and Mumbai can be intimidating. If you still wish to invest in Mumbai, you should consider putting your money into an area like Thane, which is witnessing a big boom in terms of its real estate. If you must invest in Mumbai, then new projects in Thane Ghorbunder Road and other popular areas in Thane is a great option. NRIs looking for high potential property investments should consider investing in Thane and other new-economy cities like Bangalore, Hyderabad and Pune.

How should NRIs go about with the investment?

After doing your due diligence and thorough research, NRIs can finalize a residential or commercial project they wish to invest in. It is recommended that you select a project being constructed by a reputed real estate company with years of experience. Some of the best real estate companies in India include Godrej Properties, Oberoi Realty, T Bhimjyani Realty, Lodha Group and Prestige Group. You can visit the NRI corner on the website of these real estate companies or speak to them on their helpline number for guided instructions.

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14Apr
By In NRI Property Investment

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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25Mar
By In NRI investment

Here are some Tips for Safe NRI Investing in Indian Real Estate

Real estate investment has come a long way. While many people think of it as a great source of added income, some people consider it as a great investment opportunity. Property investment is a lucrative solution for it offers great returns. When it comes to property investment, it is wise to invest in an immovable property as there is a huge scope for profit. If you are an NRI looking for some great investment options, investing in immovable property can prove to be a wise and profitable decision. NRI property investment is all about making right choices.

Here are some vital tips that help an NRI investor to make a wise choice.

Know the Purpose

As a Non-Resident, Indian or NRI, it is vital to be aware of the risks involved in investing in Indian real estate. Firstly, you should have a clear definition of your purpose of investment. Find out if investing in Indian real estate is profitable and learn why if it is. If you are looking for some great returns, then investing or buying real estate units in a developed area is highly recommended. Other than this, an NRI can even buy equity shares of the listed real estate companies.

Legal Title and Document Checks

For any NRI investment in real estate, ensure you exercise complete precision and care. It is of paramount importance to check the legality of the property. You definitely do not want to invite any legal trouble. To avoid any legal hassles, before investing, make sure you have received a confirmation from the current owner of the property and get all the details, and history about the property in question. Also speak to neighbours and find out if the land is in any sort of a legal dispute.

Location

There is no point in buying or investing in a property that is located in an isolated area. Location plays a major role in your investment and it makes sense to invest in an upcoming neighbourhood with great amenities, or an already established neighbourhood. Nonetheless, it is important to find out if the locality in which you are investing in, has scope for growth. A safe bet is to invest in a property that is located in a prime location. Apart from this, ensure you choose a property that has great infrastructure.

Reputation of Developer

A lot of homebuyers tend to neglect this aspect. Ensure the property you are investing or buying is done through a reputed real estate dealer or company like T Bhimjyani Realty, Lodha Group, Pirmal Realty etc. Ensure the dealer has a clean record, be it for timely possession and quality of the projects. You can get more details on the NRI corner tab on the realtor’s webpage.

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22Feb
By In NRI Property Investment

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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