10Sep

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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8Jul

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

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

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

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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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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