13Feb

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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18Oct

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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12Aug

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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