The phrase ‘Working Abroad’ has its own flavor. This is true for the person working abroad and for his relatives in India. Working abroad and buying a property here is akin to an international award for him and his parents. The home, once it is bought or built becomes ‘Owners Pride and Relatives Envy’. More than the NRI, it is the parent’s ambition for his son or daughter to buy a property here. Why should an NRI invest in Real Estate in India?
NRIs always want to invest here and the Indian Real Estate market has always been their favorite. They can buy immovable property in our country only in compliance with the FEMA (Foreign Exchange Management Act) regulations. Property consults also opine that the NRIs will not be subject to any legal formalities, apart from complete registration procedures in case of such investments.
The consultants further add that the government also favors such investments. The RBI has in fact emphasized the need for more such investments by NRIs in the future. The government permits the NRIs to buy commercial and residential properties and there are no restrictions on the number of properties too.
Before the property is purchased, as an NRI, you need to submit some mandatory documents like an Indian passport, work permit of your present country, IT returns, visa, and so on. Property-specific documents too need to be submitted.
Also, if you cannot come to India to buy the property, you can give the power of attorney to someone to carry out the property deal. It is very essential to get the Power of Authority (PoA) document notarized. The most important aspect to be followed is that this PoA should be given only to an Indian resident.
You also need to maintain NRE and NRO accounts here. You can transfer foreign money to India only if you have an NRE account. An added advantage is that the money you earn as interest is totally tax-free. You can transfer foreign currencies through an NRO account and manage Indian income sources.
Usually, NRIs have a heavy pay packet and rack their brains about how to invest that extra earned money. India Real Estate always seems to be their passion. This is because many come back to India for good and they would need a home. If you are one of them, and even if you have no plans of coming back, it is best to keep a contingency due to unforeseen circumstances. If not for you, you can always give an upliftment to your family with a new home with all amenities.
Since the real estate market is gearing up for the next boom after the pandemic, there cannot be a wiser investment. You can invest in places like Mumbai (the fastest-growing city in India) as it is the country’s commercial capital. Chennai, Noida, Pune, Hyderabad, Bangalore, and New Delhi are some of the other cities suitable for buying a new home as an NRI. You can go in for investment by keeping an eye on the stock market. If the rupee falls against the dollar, then it will be the best time for investment, as you can save significantly. Nowadays with a lot of cities laying metro train lines everywhere, all parts of the city are being connected, especially the suburbs. These areas are less polluted compared to the heart of the city. Less traffic, less pollution, more connectivity, and better amenities are some of the advantages of these areas. These suburbs have become the major crowd-pullers of home buyers in cities like Mumbai, Chennai, Bangalore, Noida, New Delhi, Pune, etc.
NRIs can also invest in commercial complexes. They all have good rental value. Once completed, you can be sure of a good income. You can also avail of any home loan and buy apartments for your own use whenever you visit the country. You can avail of tax benefits under section 80 C of the IT act just like an Indian citizen. Apart from these as an NRI, you can claim certain other benefits on taxes, depending on the kind of investment. With such alluring available options, there is always demand for investment among NRIs. Even if there is an economic slowdown or a raging pandemic, in order to earn long-term benefits, NRIs (age group 35-40) continue to invest in the Indian Real Estate market
