A detailed guide to buying a property in India for NRIs
Without any doubt, a lavish lifestyle overseas may attract people to become an NRI but a connection with the root is something that gets a sense of belongingness very essential for continuation. Besides these, there are quite a few other reasons for an NRI to invest in India. Few of them are lower cost of homes compared to the costs of the country they reside in or other developing countries. Moreover, the rate of price rise of real estate has always been more in India than that of the developed nations. This guarantees more returns on investment.
Additionally, the fall in rupee value against individual currencies would help them to gain more which is an extra advantage. The NRIs would always have an option to return to India if they have a home of their own and more significantly the facility of reverse mortgage would help the senior NRIs to maintain a safe retired life as the money borrowed from the banks in the way of a reverse mortgage is not taxable.
If a higher rate of return on investment and long-term investment is on your mind then you should invest in Indian property. But as long as consumer protection is concerned India has introduced RERA which has brought in more intelligibility and attempts to guard the end-users. For all these reasons and few other Indian property has always been of interest for the NRIs but recently, there has been changed interest for the NRIs to own Indian property. The reasons for it are also several.
Why Invest Property in India?
India is one of those countries who leads in the younger population which is also led by a growth-focused government at the center. The economic liberalization two decades ago has brought vast dividends to India attracting global investors and now it is perched to experience the next phase of the growth course. The economy of India has shown a healthy growth rate of 7.02% over the last seven years with enhanced purchasing power, demand and consumption from the domestic sector increasing the investment activity.
The real estate sector also provides a diverse range of property segments spread across multiple cities having their demand drivers. The vital metropolitan areas include cities like Bangalore, Delhi NCR,Mumbai, and other emerging cities such as Hyderabad, Pune,and other cities with IT/ITeS industries being the significant drivers of growth. The Indian market is also well distributed with family businesses, domestic institutional investors,large global institutional investors, high net-worth individuals,and real estate funds. The yield from residential properties differs between 2 to 4% and in the commercial sector, it is approximately 8 to 11%. The real estate investment by foreign investors has been increasing annually with more NRIs interested to invest in Indian properties.
Reasons for the Enhanced Interest of NRIs on Property in India
Whether it is upcoming projects in Bangalore or apartments in bangalore, India, there has been enhanced interest in Indian properties by NRIs because of the following reasons:
- With the introduction of RERA, the customers’ risks have been reduced significantly with enhanced buyer’s sentiments.
- With new interests and an environment under GST, it offers more comfort and confidence to the investors.
- The consumer sentiments are expected to perk up gradually as GST, RERA, and the changed provisions of bankruptcy and insolvency change real estate into a customer-friendly sector.
- The year 2017 experienced a turnaround period after RERA and GST were introduced bringing in more precision surging buyers’ sentiments resulting in more bookings andinquiries.
- The reasonably priced housing sector has got a transformed boost not only because of a drop in the price but also because of the government rolling out a range of incentives and measures for first-time home buyers.
Most Essential Points to Consider Before Finalizing the Deal
Before selecting the location, get the master plan of the city you aim to invest in. Apart from the four metros of India, there are other cities too which are growing fast like Ahmadabad, Bangalore,Hyderabad, etc. If you select to invest in your native town where you grew up and where your parents live then the master plan would tell you how the city would look like or develop to after one or two decades. This will give you a reasonable approximation of the places that would develop in demand and what are the most rewarding places or areas to invest.
Purchase When the Rupee is Falling against your Currency
Keep a close look at the trend of the rupee in comparison to the money of the country you work in. If the trend of the Rupee is falling against your currency then it is the perfect time for you to purchase as you would gain by the falling rate of Rupee. If in its place, the Rupee is gaining against your currency then it is not the right time for you to purchase as that would prove costly. Select a time for investment watching the trend of the value of Rupee and choose a time when the Rupee falls against your currency and on applying for a loan the banks would also sanction it as a result.
Evaluate the Value of the Property
If you are planning to invest in any of the leading flats for sale in bangalore, then carry out a quick valuation of the property using the latest techniques. Also, you can take the help of a professional surveyor or valuer to evaluate the proper value of a property.
Documents required for buying villas in Bangalore, India
The below-mentioned documents are required for an NRI to buy a property in India. :
- Address Proof
- Passport Size Photographs
- Passport (for an NRI)
- PAN Card (Permanent Account Number)
The experts feel that now is the best time for investing in the residential real estate as builders are offering discounts to get rid of their unsold stocks. The prices of residential apartments dropped considerably after the demonetization and regulatory measures like RERA and GST have made the market more equitable, consumer-friendly, bringing in extra transparency, accountability, and security.
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