Step – by – Step Checklist for NRI real estate investment in India
Where NRIs might want to invest in Indian real estate to profit from correcting costs and a depreciation of rupee, There’s a lot of analysis and careful planning about investing. Here’s we are telling you how to keep track of
Presently, NRIs real estate investment in India is a popular choice. However, since they live in abroad, it becomes a lot of necessary for them to pay proper attention before risking their money.
Essential checks for NRIs
Nowadays, many Indian developers conduct roadshows in abroad for NRI real estate investment in India. NRIs are not entirely convinced by their impressive presentations and shiny brochures. They want to visit the property’s site and check the ground realities of project. Like all real estate investments, the location of the project should be attractive and should have good connectivity. cost is another important issue. “Often, the costs quoted by builders to abroad buyers , are higher than those quoted to domestic consumers. Also, builders don’t offer discounts when they selling abroad,” Sanjay Sharma managing director of Qubrex real estate, a Guru gram based real estate consultancy says, In such a scenario, the international buyer must learn the rate at which the project is being sold in India. moreover, they should avoid paying a large part of the cost upfront. In fact, they should choose either a construction-linked payment plan or the 80:20 or 70:30 scheme. In such schemes, a small portion of the cost is paid upfront at the time of booking, and therefore the balance is paid on possession. better still, they should choose finished apartments to avoid the risk of delay in possession.
It may also be wise for NRIs to take a small bank loan, even if they don’t need the money. “When NRI takes a bank loan, the bank will do the diligence on their behalf,” explains Sharma. “It can check whether or not the builder owns the land on which he is developing the project and has obtained the requisite licenses. this will avoid a lot of trouble, Mr. Sharma added that he has witnessed quite of few examples of NRIs real estate investment in India in small builders’ projects & regretting not having done timely research.
Indian laws governing NRI transactions
NRIs investment in India must understand the laws that govern real estate transactions. There are, as an example, restrictions on how quickly the profit from a real estate transaction can be repatriated. NRIs also need to learn whether their gains are subject to double taxation.
Market research for NRIs
The real estate sector in the developed markets is better governed and more evolved, not like India. Here, buyers are often subjected to a lot of hassles. Unless NRI has a trusted person running errands in India, buying real estate in India can be difficult. Then there’s the management of the property as there are not many companies in India still that offer such services. This makes it all the more essential that an NRI has an agent to collect the rent as well as look after its maintenance.
ROI expectations for NRIs
“are likely to be lower than they have been in the recent past,” explains Vishal Dhawan, chief financial planner, plan Ahead Wealth Advisors. “Therefore, NRIs investing in residential real estate at this point of time, should have affordable return expectations over a long-term period,” he says. Finally, NRIs also need to bear in mind that the depreciation of the rupee against their home currency, will also have an effect on their returns.
