Investing in India’s real estate is considered as one of the most lucrative investment options for the NRIs across the globe. Besides having a decent knowledge regarding all the terms and conditions of investing in Indian properties, NRIs can also reap good returns through investing in this sector. Nevertheless, any kind of investment that involves money needs to be done in a proper manner, adhering to all the stipulations. Prior to investing, NRIs must be aware of all the provisions that are a part of Foreign Exchange Management Act and the Income-tax Act.
Having a clear understanding of all such rules set by the Indian government can help NRIs in making an appropriate real estate investment decision in India.
Guidelines defined by FEMA for acquiring an immovable Indian property:
For NRIs: In accordance with the FEMA, an individual who is residing out of India holding an NRI status can purchase any immovable property in India except an agricultural land or farmhouse. The transfer of property except for agricultural land or a farmhouse can be done to:
For PIOs: In accordance with FEMA, an individual resident of a foreign county who is a person having an Indian origin, also referred to as a PIO can acquire an Indian property with an exception of farming land or farmhouse by:
Advantages of NRI Investment in Indian Property:
Keep Connected, Remain Rooted: Even though you might be in love with that luxurious overseas living, nevertheless a property back home will certainly present you a sense of belonging. It helps you in staying rooted with your motherland and growing better. With a property in India, you can pay a visit to your country whenever you need and impart the rich values and demonstrate the vibrant cultural tradition to your growing friends and family overseas. Furthermore, no matter where you reside you are going to often yearn for your homeland. Sooner or later, you are certain to express ‘Take Me Home’.
Cost Upsides: In addition to the emotional attachment, affordability is an additional significant factor of why making an investment in India is rewarding for NRI’s. The currency of first world nations trades strongly against the value of Indian rupee providing you with an upper hand. As a result, it is possible to invest a lot more because of this gap in the value of the currency.
Rent Advantages: NRIs either have an option to retain the property for their stay at the time of trips to India or perhaps enjoy an added income source by means of rent. Even though NRIs are taxed on the rental earnings, nevertheless, a part of it will get reimbursed under section 80C. NRIs can declare benefit of deduction under restoration and upkeep of their Indian property.
Retirement Advantages: Senior citizens having a property in India obtain the advantage of a Reverse Mortgage. The money received from the bank concerning Reverse Mortgage is not regarded as a component of the earnings of NRI. It is an excellent advantage for senior citizens since they own the real estate and obtain money from the bank. This program is progressively gearing up and is actually being exercised by various banks thereby turning it into an advantageous scheme for NRI’s.
Long-term Profits: The business insiders reckon that NRI investment in Indian real estate is predicted to reach 12 billion dollars this current year. The real estate sector has demonstrated impressive growth in the last ten years and is anticipated to increase by 12-15% on a yearly basis. Therefore, in case long-term investment and higher return are on your mind, so investing in a property in India must be on your plan of action. In addition to that, with RERA going into effect NRIs can count on increased transparency in the real estate transactions. It’s an advantageous move for the investor as well as the developer.
Are you an NRI and planning to invest in an Indian property? Having questions regarding ways in which NRIs invest in property in India? We at NRI Legal World can help you fulfill all your real estate dreams. Indian real estate is booming nowadays and if you are looking for a reliable company who can help you invest in Indian real estate, feel free to get in touch with us at +91 85-85-85-71-71 or email us at info@nrilegalworld.com.
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