The Buyt Desk
NRIs are eligible to buy or own immovable properties in India. Indians consider this investment most valuable. But is it a good idea to invest in Indian Real Estate?
Investment in immovable property is considered a good investment in India. NRIs cannot escape this belief system. In compliance with the FEMA (Foreign Exchange Management Act) regulations, NRIs buy or own property in India.
Indian Real Estate
For Indians be it, residents or Non-residents, investing in the Indian real estate sector has always been a personal favourite. Elders believed in buying lands and the same culture is passed on to generations. Irrespective of where NRIs reside, buying properties in India is a must for most. Maybe it is a feeling of attachment to their homeland. In compliance with the FEMA (Foreign Exchange Management Act) regulations, there is a provision for NRIs to buy or own immovable properties in India.
In the Indian law system, it is easy for NRIs to invest their funds in any immovable property in India as there are not many legal formalities for NRIs. They just need to go through registration procedures in real estate.
Why should NRIs consider investing in immovable property in India?
Real estate investment must be always done carefully as the chances of scams are very high. It should be well planned, and properly assessed and only after confirmation should be put into practice. Generally, NRIs are opportunistic and smart in their investment decisions.
Indian Laws – Now that the Indian government has updated rules and given relaxations to NRI real estate investors, buying real estate in India is very easy for NRIs. The government of India and the Reserve Bank of India are emphasizing the need to increase NRI property investment in India. And also have plans to streamline NRI’s ability to purchase more real estate. As per Indian laws, NRIs are allowed to invest in any immovable property in India but not agricultural land, plantation property or a farmhouse. Only residents can buy cultivation lands for agriculture purposes.
Banking – In India, banking laws are also encouraging NRIs who want to invest in immovable property in India. With very few terms and conditions, real estate loans are available through leading financial institutions for NRIs. Under this, loans can be availed for buying lands, renovation of the property, construction, purchasing a dwelling unit or buying a commercial property. EMIs can be paid by transferring funds from a foreign land.
Retirement plan – Few foreigner invest in immovable properties as their retirement plan. When the NRIs wish to return back to India, this property will serve them as retirement homes.
Returns – Investment in the immovable property be it land or constructed property, is always precious in India. Considering the current expanding economy, NRIs increased disposable incomes and lowered interest rates have attracted many NRIs to invest in immovable property in India. Returns are good in Indian real estate.
Legal matters –
-
NRI must comply with income tax regulations if he /she is earning a rental income from the property.
-
NRI’s investment in real estate projects in India is exempted from any major legal requirements.
-
NRI may transfer immovable property to a person who is an Indian resident, NRI or a person of Indian origin residing outside of India.
Summing up
With so many benefits NRI should consider investing in immovable property in India. Just be cautious when selecting the property and dealing with the seller. Legal formalities are all eased out for NRIs buying or owning immovable property in India.
Happy Investing.
