As a market to invest in, the Indian real estate scene has been a thriving sector for Non-Residential Indians. In fact, realtors, estate experts, and developers also give in their best to gain the attention of NRIs. But as an NRI who has not visited the country for a long time, probably has never come here but wishes to invest in India, has little to no knowledge about the current scene. What are the points that they must look for to save themselves from the tricks of fraudulent or cheating agents? Let's find out ;
There are specific rules and regulations put in place, alongside many guidelines, to safeguard the rights of Non-Residential Indians wanting to own property in the country. However, there are also certain Do's and Don'ts that every NRI must be well aware of when it comes to investing in the Indian realty market. Here is what an NRI must know
Buying or Selling
NRIs hold the right to own, buy, and sell property in India with certain restrictions. To purchase and sell property held in India, NRIs can choose to either come here on their own or can hand over the Power of Attorney to a relative or associate living in India and avoid coming here. One thing, however, to remember for transactions is to hold an NRE (Non-Resident External) account to facilitate money exchange.
Loans for Investing
NRIs, just like any Indian Citizen can take home loans in Indian rupees, amounting up to about 80% of the investment value. Eligibility and availability of these home loans depend on the person's age, income, education, etc., while the total term for the loan would be anywhere between 10 to 15 years. However, the loan amount will not be disbursed into the account of the NRI but will be directly transferred to the seller or the developer. The repayment of the loan can be made via an NRE account, rental income, or the borrower's account of a relative staying in India.
For a lot of investors, renting their property to generate a secondary source of income may sound like a good idea. However, rental income in India is a taxable source irrespective of a person's residential status.
Who is the Seller?
There are several projects in development in India that are marketed to the NRI audience. However, many times, these projects fail to reach the minimum safety and clearance standards set up by authorities in India. As a result, there have been numerous cases where the project has been called off in between. That is why it is advised to NRI's to go for developers that have an excellent track record and a recognized brand name.
Understand Taxes on Gains
Taxation on income or profit generated through real estate applies to everyone, irrespective of residential status. Knowledge on how and where to place the money in real estate is a must to understand the difference between short term and long term capital gains, and what benefits each of them has.
These Do's and Don'ts can help NRIs in not only getting the best value of their money but will also save them from a lot of issues that generally arise in the industry. As an NRI, if you are looking to invest in JDA approved plots in Jaipur, KGK Group is the expert in the field. Not only will you get the best value for money, but also the best suggestions and hassle-free transfer procedures.