The NRIs are those sections of the country that are born and bought up in India but are currently staying in other countries. They have their roots in India but have shifted to foreign countries for their career or other related benefits. They follow the rules of the country in which they stay but there is no restriction for them in India. They play a major role in the economy of the country. They are free to conduct all the activities just like other citizens staying in India.
Amongst all the activities and actions that they are allowed to perform, they prefer investing in real estate. Do you know why are they so interested to invest in properties where they are not even staying? We will tell you.
- The primary reason is that the Indian real estate market is growing at a high pace. Till now, it has not suffered any loss and the slope of the graph is always upward. Due to this, they know that the return on the property will always be high.
- The other reason is the emotional connection with the homeland and to keep a permanent location if they plan to return in the future.
Both the reasons are very strong so NRI Investment in India is a great step.
The concept or the step is great but not so easy because being an NRI, people have to complete several formalities. They have to keep some important points in their mind before initiating the investment process. 5 important points amongst them are:
Be ready with the documents
To and fro traveling within the countries consumes lots of time and increases the expenses so it is necessary to be ready with the same during the visit. There are not many documents required for NRI Investment in India. A few of them are passport, PABN Card, address proof and recent photographs.
Be aware of the payment options
The mindset of the people is that a foreign investor will have enough funds for the investment but that is not the case always. Even they have money in their account; they avoid direct payment to be secured. The best option is to apply for home loans that will help in an easy transaction and save them from taxes.
Study the tax deduction details
The tax rules and benefits are the same for the NRIs as for the citizens residing in the country. It is necessary for them to study the tax details and how it calculated on the purchased property. As per our details, vacant property and self-occupied property are exempted from tax but still, it is advised to confirm.
Verification of the property
The most important step during NRI Investment in India is verifying the property. The first step is to research online for the details of the real estate company. Later, they should try connecting with the existing customers online and know their reviews.
Be careful with the Power of the attorney
In case people are unable to visit India to complete the investment process, they can choose someone close to complete the transaction on their behalf. For this, they need to sign a power of attorney that will legally permit the relative to purchase the property. In case there is no such document, NRI Investment in India will fail.
The idea of NRIs to invest in the Indian real estate market is great but it should be done after they have complete knowledge. If they are still not confident, they can take help from the registered real estate consultants and advisors.