NRIs are betting on safe investment opportunities like the real estate market in the wake of the Covid-19 pandemic. The Indian real estate market has lucrative opportunities for growth in the upcoming years.
The acquisition and purchase of NRI owned properties are controlled by FEMA (Foreign exchange Management Act) and governed by the RBI (Reserve Bank of India). RBI sets various guidelines from time to time to monitor the purchase of properties by the NRI’s. Purchase of any agricultural lands, plantations, farmlands (farmlands are categorized as agriculture lands) is not permitted to the NRIs.
The NRIs can buy multiple residential or commercial properties as there is no restriction. FEMA and RBI have also set regulations concerning the mode of payment for the purchase. Foreign currencies are not allowed for the purchase of properties. The payment must come from the valid banking channel via the NRI accounts associated with the banks.
Below are a few motivation pointers for the NRI’s to buy property in India
There is an easy and fast procedure for NRIs to avail home loans for immovable properties in India. The banks will require a few standard documents such as income proof, proof of identity, proof of employment/self-employed/business individual and Property documents. The Income documents like salary slips, work permit, bank statement showing salary credited in the last 3 months, and tax filed documents.
Property documents require all the property-related papers, which will be provided by the developer (documents like Agreement to sale, OC certificate [if available], etc. Proof of identity documents such as employee ID cards/Passport/ valid work visa. Proof of employment involves an employment contract document. Most banks provide an online loan feature on their website/apps to check the eligibility, loan amount and tenure.
Property choices and rental income
The government of India has extended the choice of buying immovable property in residential/commercial with no limitation. The taxation is much friendlier than other western countries, as the GOI is motivating NRIs to invest in India, and Real Estate is the best investment avenue. With the economic boom, and increasing demand for real estate space, rental income from the investment is a suitable foolproof strategy. The rental in metros has taken a linear growth in the last decade.
Lower floors attract higher rental returns, according to property studies, because Indians prefer to live closer to the ground. If you’re looking to buy a house as an investment, the ground level of a high-rise structure is the greatest option.
With the introduction of RERA (Real Estate Regulation Act), there is crystal-clear transparency in the documentation. All the property documents are readily available on the RERA website and are accessible to everyone. These documents are duly verified by the authorities. The RERA also regulates project specifics like completion date, construction as per plan sanctioned etc.
Financial and Emotional Security
It is always emotional to have a home back in your hometown. Many times, the property is bought for parents/family to give them a better lifestyle. And with the uncertainties luring, it is always good to have a home back in your hometown.
NRIs can make the most of these regulations and easily purchase a residential or commercial property. The concern which remains is choosing the right builder. There are certain builders like Goyal & Co | Hariyana Group. who have built a legacy of quality and trust. Always choose to invest in projects which are backed by the promise of quality.
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