India is rapidly becoming a Global hub for different industries, such as aviation, IT, medical, education, etc. For all round development of all these industries, commercial properties are required on a large scale. As a result, the Indian real estate market is developing by leaps and bounds and it is expected that almost 75% of industries are looking for commercial property in the country to expand their clout within a short time span.
The rapid growth of Indian real estate has encouraged NRIs to make an investment in this sector and earn a decent recent on investment. There are many foreign investors, including NRIs, who are migrating into the Indian market for this purpose. In order to make the investment in the right real estate projects and ensure a healthy return, NRIs must follow the below-mentioned tips:
1. Determine The Purpose Of Investment
NRIs tend to make the investment in real estate projects with an intention to make a huge return. But, before investing the hard-earned money in any real estate project, they must define its purpose. For example- you may want to achieve your definite goals through the investment like developing apartments for commercial use, residential living or for a future retirement home, etc. In order to avoid any risk of being involved with dubious real estate agents and companies, you must check their previous track record as well.
2. Know The Type Of Property You Are Buying
As per the law, NRIs are not allowed to buy agricultural land/ farm house plantation property. But, in order to make money, many locals sell agricultural land to NRIs knowingly or unknowingly. If you do this, you can land in legal trouble if someone pursues you legally.
Always keep in mind that being an NRI, you can have the ownership of such property if it is inherited. You can buy/sell only residential and commercial property. In order to determine the nature of the land you are going to buy, you should take the help of real estate lawyers. They can easily find out the land/property you should buy for real estate projects.
3. Take A Home Loan If Required
If you are facing a cash crunch, you can avail home loans for making alterations to the existing property, construction of a new property, under construction building, possession, etc. But, as per the law, you (being an NRI) can't get the approved loan amount in your bank account. The money is deposited to either the seller’s or the developer’s account.
4. Power of attorney
When you take a decision to purchase an under-construction property, then you need the power of attorney (PoA). NRIs have to go through a lot of documentation and verification process to achieve this right. To accomplish the required legal formalities for this easily and quickly, you should seek the help of property dispute lawyers.
5. Financial Transactions:
As India doesn't allow financial transactions to be made in foreign currencies for business dealings in the country, you need to use normal banking channels or NRE or NRO account. This will help you to finance your projects easily and quickly. Even if you get an inward remittance from anywhere from the country, you need to use NRE/NRO/FCNR (B) accounts as per the guidelines of the Foreign Exchange Management Act 1999 (FEMA) and RBI guidelines.
Final Words:
NRIs are making a great investment in Indian real estate industry with an anticipation to get a good income. By following the above-mentioned tips, they can have a profitable real estate business easily and quickly.
Source:
No comments:
Post a Comment