NRI Can Invest In Indian Real Estate Project
Are you an NRI and want to by a property in India? Want to settle back in India in a luxury like Prestige Green Gables residential apartments?
Forget NRIs, even for Indians, property buying is quite a struggle. But with recent price correction in the Indian real estate market, buying property has become more lucrative. Time could not have been superior for you to do so. With the favourable changes made by RBI to attract foreign investments, property investment has been made easier than ever before for the Non- residents Indians.
NRIs have been an important section of investors in real estate market. They generally commit their capital in India out of the emotional connect to settle back after retirement. If you are looking to invest in a property in India, remain aware with the implications and procedures related to its purchase.
Some Must-know for NRIs before investing in a property in India:
Which type of property can you invest in? Being an NRI there is no restriction on the number of properties you buy. You can own both commercial and residential properties in India but can never go for plantation properties, farm house or agricultural land, unless you become an owner of the same by inheritance or as gift.
Have an account for financial transactions: All the transaction for any property investment has to done in Indian currency. Therefore, it mandates you to have an NRI account with an authorised Indian bank. For any property transactions payment are remitted to India through normal banking channel. No payment will be accepted either by foreign currency notes or by traveller’s cheque. Also, any payment from outside India will not be accepted.
Availability of funds: Being an NRI, you are allowed to finance the property with loan. Funding are available easily if your paper work is clean. Various financial Institutions in India offer different schemes for NRI home loans. Make sure you invest minimum 20% of the property value from your own sources. Because, at the max 80% of the value can be raised through funds. Before approaching any bank for funds, make sure all your paperwork is verified by the lawyer. There are no dues or pending bills with any authorities. Get the no-dues certificate from the seller, and if the property is jointly held or inherited get the title cleared.
Giving Power of Attorney: When buying an under-construction property, an NRI have an option to give the power of attorney to his relatives, friends or any trusted associate in order to complete the process of property purchase. In power of attorney you can specifically mention or generalize the rights your representative can exercise. Get the document worded appropriately by your lawyer to avoid any kind of forgery and to secure your investment while the property is being developed.
- Tax Gains: On purchase of property, all the tax benefits that an Indian resident is entitled to, most of it is enjoyed by an NRI as well. The Income Tax Act, 1961, under section 80C, says, an NRI can claim a deduction of 1 Lakh rupees on purchase of any property. Selling any property within 3 years of its purchase is considered as short-term capital gain and the earning through that property is taxable. Selling the property after 3 years can reduce your tax on long-term capital gain, only if you invest in another property.
Real estate exhibitions: The CREDAI (Confederation of Real Estate Developers Association of India) and many other private developers organise various property exhibitions every year. It helps NRI buyers and investors to scan different options and spot loans from top banks. Various other offers like easy investment option, reduction in down payments are also offered. It is important to check on these if you are planning to invest in a property like Prestige Green gables in India. The Prestige Green Gables are commencing their 3rd property exhibition “Prestige KEYS 2018” on 21st September.
To make the most stressful task a complete anxiety-free event, most NRIs consult their relatives, friends and colleagues while house hunting in India. Who themselves do not have real knowledge of the regulations and rules regarding the real estate market. You are advised to take advice from a professional only like a property lawyer or a property consultant in order to save your time, effort and hard-earned money. Land up a decision only after due diligence.
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