Real estate is always an attraction for the NRI community. After the COVID-19 pandemic, there has been an influx of NRIs wanting to invest in properties in their homeland.
Investing in real estate doesn’t come with any significant restrictions. The availability of good projects and attractive options offer NRIs an opportunity to make an informed real estate purchase.
India has become a natural choice for NRIs as it is considered a fast-growing economy and a real estate market that can withstand recession on the global level.
NRIs looking to retire and settle in a few years consider India the perfect place to invest. The major pluses for India are that it boasts a good infrastructure. Metro and monorail have improved the connectivity. Good educational institutions, healthcare facilities, and entertainment options offer an upgraded standard of living.
Besides, the laws and regulations in India are more lenient than in many other countries.
Here are some tips for NRIs who want to invest in Indian real estate.
Comprehensive research
Due to rapid urbanization, many are witnessing quick development. Since many organizations are setting up their business in India, such hubs offer exponential growth opportunities. Investment in such areas will help in sharp appreciation. Hence, thorough research is vital before deciding to invest in real estate. You must also look at the project’s status and the possession date. It makes a huge difference when buying a project while it is in the early stage and ready to move in.
RERA approval
With the establishment of the Real Estate Regulation and Development Act (RERA), real estate investors are safe from offenses and faults of builders. When NRIs buy RERA-registered properties, they can be confident that the property is as specified by the builder. You can check to see whether the property is RERA registered or not. You can visit the RERA website and check either by entering the RERA number of the project or just by adding its name.
Easy availability of loans
Banks in India offer many funding options for NRIs through their housing loans. You might have to open an NRO/NRE account, and you will have to make the payment in Indian rupees. Ensure that you have a good CIBIL score. Often Indian banks insist on having an Indian resident as a co-applicant for home loans if you are an NRI. You might also have to issue a power of attorney.
Tax benefits
NRIs can claim an income tax deduction for the interest paid on a home loan. There are tax differences between leased-out and self-occupied properties. Before making a property investment, these details should be thoroughly researched. Also, check on the taxes related to capital gains.
New policies and regulations
Real estate in India witnesses changes rapidly. Government comes up with development plans, special zones, and lease and freehold properties. Hence, it is essential to know about all those before investing in India.
Choose a trusted brand
Investment in real estate involves huge money. There are many small and big players in the realty market. Do not trust blindly based on offers and discounted prices. Check the credibility of the realtor and past projects. Ensure that the firm has all the licenses before proceeding with the purchase.
Consult a lawyer
Engaging a lawyer to take care of the paperwork would be wise. Lawyers associated with real estate work can spot loopholes that may not be known to you. Also, ensure you do all the payment transactions using online banking or cheques.