Real Estate Guidelines on NRI's Investment in India
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Real Estate Guidelines on NRI's Investment in India

By siliconindia   |   Wednesday, June 25, 2014   |    2 Comments


Bangalore : Most of the NRI's (Non Resident Indians) is working very hard in abroad, saved all the money and now looking for investment in their country. One of the greatest Indian dreams is to buy a house in India. A house in India is vital to live with their parents and friends. Depreciation of the Rupee has fuelled the demand of Real estate investment by NRI's in their Motherland. Over the years, the Indian law has advanced and made this as a quite easy job. The Reserve Bank of India is undergoing with such transactions and Property purchases are governed by the Foreign Exchange management Act (FEMA). NRI should be very clear before investing in real estate. They should be aware of actual benefits, available options and procedure to undergo. Let us have a look of guidelines and implementation for NRI's. Which type of properties NRI can buy ? They can purchase any kind of property like a commercial and Residential properties exception of Agricultural land, Farm houses and Plantation even he cannot receive such a property as a gift. There is no need of any permission with RBI. How about the financial options ? As of today, there are several financial options are appropriate to buy a property in India. The RBI has fixed some norms for NRI's. The home loan for NRI is constrained to utmost 80% remaining should be borne directly by NRI; the interest rate will be high. Payment can be done directly from a nation of current residence through normal banking like NRE/NRO. Is verification is required ? Even you are dealing with a known builder or developer and reputed builder verification is required. You should employ with a real estate lawyer and an accountant to verify the land and bank details. Always check that the property has no pending bills like water bills, electricity bills, loans and also verify approvals and no due certificates. How will be the Tax Implementation on NRI ? Income tax laws are not much complicated for NRI's while purchasing a property in India. In case of a lease, tax procedure will be slightly hard and complicated. They are being offered with several benefits. NRI's who is residing in a country and but having property in India they can bypass Double tax Avoidance agreements in India if your country permits. How to acquire a safe deal ? Sometime NRI may feel quite overwhelming to decide a right property for investment in India. The perfect manner is to acquire a help from relatives and friends. You request to search for the right one. Presently, there are many reputed real estate builders who will offer the complete services for NRI's they will sort you out from this problem. They also have schemes to take care of your property and they will charge for maintenance. The agents may provide the flaw and misleading information regarding property in India, cross checking all the documents and property values may save you from many complications. It is advisable that NRI should give up all the rights to a trusted relative Indian resident, because in the absence of the owner he can complete all the legal formalities.

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