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 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.
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!