NRIs have spread the culture of India to other countries and have brought pride to the nation. Many seek to invest in India, especially in real estate and hope to settle down here some day. With the regularization of the real estate sector with RERA, there has been a keen interest among NRIs in investing in real estate in India.
Before, we dive in, it is important to understand the definition of the term NRI (Non-resident Indian). A NRI is an Indian Citizen who resides in India for less than one hundred & eighty two days during the course of the preceding financial year, or
who has gone out of India or who stays outside India for the purpose of employment, or who has gone out of India or who stays outside India for carrying on business or vocation outside India, or who has gone out of India or who stays outside India for any other purpose indicating his intention to stay outside India for an uncertain period. Some of the key points that NRIs have to consider before investing in real estate are
It is important to understand which type of property to invest in. NRIs can invest in any residential or commercial property. However, they cannot invest in agricultural lands and plots, plantations or farmhouses. However, NRIs can inherit such properties. Particularly in the case of Chennai, it is very attractive to invest in plots in Guduvanchery, plots in Oragadam or any of the outskirts or suburbs. Investing in a commercial property and renting it out to banks or blue chip companies will have a bigger advantage than purchasing and leasing or renting any residential property. However, it all depends on the budget at hand and the aspirations of that particular person.
NRIs should only transact in Indian Rupees (INR). They must pass through banking channels and use an NRE or NRO account for the same.
The transaction can be funded with own funds or with loans from financial institutions. In all cases, it has to be via proper banking channels. In case the funding is by a financial institution, only 80% of the amount will be funded, while the balance 20% will be via own funds only.
Since NRIs do not stay in India, there is a need for a party to represent their interests, especially when legal matters are involved. This is achieved by having a POA executed. Any reputed advocate can help in this regard.
Yes. NRIs have the same rights as residents with regard to tax benefits for real estate. Consulting a chartered account will give full details on this aspect. Always, the Foreign Exchange Management Act (FEMA) regulations have to be complied with. For an NRI with an Indian passport, there is no need for any RBI or other approvals for investing in real estate.
It is always necessary to have some valid documents before making a real-estate purchase. These include a PAN (Permanent Account Number) card, some address proof like an Aadhar or a driver licence and (of-course!) a valid passport, whose expiry is not within the next 6 months.
India is a big country and Indian citizens can buy real estate anywhere in India. Considering this, it is important to look for high-potential areas to make an investment, so that there can be rapid appreciation in asset value. Consulting with a reputed company like Wisdom Properties, the best real estate company in Chennai, can help make a good decision.
If you are looking for plots in Oragadam, DTCP approved Plots in Guduvanchery, Plots/Land for sale in Chennai or property for sale in maraimalai nagar, then Wisdom Properties is the company to approach. As an organization of professionals, they bring excellence, innovation and transparency to all touchpoints. With a successful track record of having served many customers, they are the most reliable real estate company in Chennai.