NRI INVESTMENT IN REAL ESTATE – DOS AND DON’TSApril 16, 2018
Indian real estate has always been regarded as of high investment prospects according to NRIs. The Indian diaspora overseas consider Indian realty as a haven of investment opportunities due to beneficial deals like flexible payment schemes, luxury properties of global standards, fruitful returns, etc. But, when doing so, the NRI should take optimum advantage of the situation by ensuring that his investment is in the right direction by adhering to a streamlined procedure for harvesting a good deal.
Here are some key areas on which an NRI should make a wise decision regarding investments.
Buying and selling
An NRI can buy or sell a property in India by physically being in the country or also by granting a Power of Attorney to a trusted individual for closing the transaction, without coming to India.
NRIs are also eligible for availing home loans in India and the process and documents required may vary according to the country in which he is settled. Loan tenure can be from 10 to 15 years, while the loan amount will depend on age, income, education, etc. A non-resident external account or NRE is advised for financing the property purchase as to help take back the capital invested in the property during reselling.
On the verge of retirement is the best time for NRIs to make the investment if they plan to settle in India. After deciding a primary residence, the surplus funds can also be invested in a second property to generate a rental income.
Laws and regulations for investment often different for NRI investors. Rental income is taxable in India like in other countries too, but in some cases a treaty might exist between the 2 involved countries regarding double taxation.
Ladder Mankav Greens is one of the flagship apartment project of Ladder Kerala, one of the top builders in kozhikode, Kerala for building premium flats and apartments in Calicut. The project is equipped with most-modern amenities and is constructed according to global standards to ensure that a luxury lifestyle is facilitated in sync with modern living.