Through real estate investment, NRIs can generate a decent income. It also benefits them with an incentive to settle in India. By making real estate investments, NRIs can get various tax benefits, for example, exemption from paying wealth tax. Without knowing the key parameters, NRIs may find difficulty while investing in a real estate property in India.
Impact of RERA On NRIs: Reasons Why NRIs Should Buy A Property In India
1. Due to the demonization, the prices of the homes have slipped, resulting in lower interest rates on home loans.
2. NRIs can purchase properties as long-term assets because, from the perspective of an investor, India is one of the best nations for real estate investment for rental purposes. Investing in the Indian real estate sector will yield regular rental returns in addition to appreciation.
3. Purchasing processes have been simplified by amending several rules and regulations.
4. Lenient FEMA policies and relaxation of laws by the RBI regarding property buying by NRIs are likely to boost their participation.
5. Because properties vary in value depending on where they are located, investing in Indian real estate is very profitable for non-resident Indians.
6. The RERA Act has created a number of laws, rules, policies, and programmes that have boosted the economy and increased the opportunities for NRIs to make investments.
7. The RERA and easing of funds in the form of ECB, FDI, etc. have attracted the attention of reputed business houses and customers.
8. With tighter regulations, greater transparency, more affordability, and enhanced price stability, NRIs will find interesting investment opportunities, as long as they have a long-term view of investing in the projects of India.
9. Without setting a budget, NRIs can’t wisely choose a suitable residential or commercial property. They must decide the amount they can afford to invest without compromising their financial stability. It is important to consider home loan EMIs, down payment, registration charges, and other relevant expenses. To avoid hassles during cost overruns or unexpected circumstances, they must keep a buffer.
To wisely allocate a budget for the desired luxury homes in Gurgaon or other types of real estate property, they must consider the cost structure. It covers the following parameters:
*Basic cost of property (includes base price per square foot and charges like floor rise charges, preferential location charges (PLC), etc.)
*Additional costs (including Goods and Services Tax (GST), Stamp duty and registration fees, brokerage fees, maintenance and upkeep, legal fees, and home loan-related charges)
*Other miscellaneous expenses (including utility connection charges, society membership charges, etc.)
10. Home loans financing-
It is important to thoroughly research and compare different financial institutions providing home loans to NRIs. Subsequently, they need to submit a loan application with the required documentation. After approval, the loan amount gets disbursed (Either fully or in installments) directly to the developer or seller.
11. Property management:
After acquiring the property, its management is vital. This is because NRIs may not be always physically present to supervise the property. NRIs can consider the following aspects of property management:
*Search for reputable, experienced management firms or property managers in the property’s neighborhood.
*Outline the scope of their services (may include maintenance, rent collection, handling tenant issues, and certifying statutory compliance).
*Evaluate their fee structure
*Set up a mechanism for regular reports and updates on the property’s contract, condition, and other related concerns.
Conclusion:
NRIs can benefit from profitable real estate investment by following the present guide. These aspects help them make a wise investment and yet stay stress-free.