NRIs and Indian Real Estate
Almost all NRIs leave India in pursuit of their career. However, some long to stay connected with their motherland beyond family ties. And with everyone looking to invest in multiple avenues, property in India might be a great option to remain connected.
Here’s why investing in the Indian real estate is good for NRIs:
- NRI-friendly rules: Despite being an NRI, you can still buy a property in India, like any other citizen (except agricultural land or farmhouse). This means that you are eligible to buy a residential house, apartment or commercial property as per the Foreign Exchange Management Act (FEMA). You are also permitted to take a home loan up to a whopping 80% of the total value of the building/land from Indian banks and financial institutions. To save you from frequent visits to and fro, the rules specify that you have to hand over the power of attorney to the builder in case of an under-construction building. However, most people might not know that the power of attorney can also be given to a trusted friend or relative.
- Safety-friendly rules: With the implementation of GST, the taxation process is now more transparent and less overwhelming. Secondly, the introduction of the Real Estate Regulation and Development (RERA) Act, 2016 has led to more protection of the buyer’s money and rights by increasing the accountability and responsibility of the builders.
- Money Matters: Though the depreciation of the value of the Indian Rupee might be a negative aspect on the domestic front, as an NRI it means that you can afford more despite there being no change in your income abroad.
- Good Investment: Buying a property back in India can yield profit in the form of rental income (if you give your property on lease). Plus, since the past few years have seen the GDP, foreign investment, infrastructure, etc. continuously growing in India it is definitely a fruitful foothold in your home country.
- Financial Benefits: You are also entitled to all the tax benefits that any other residential Indian enjoys, including claiming Rs. 1 lakh under the ITA, Section 80C. Last but not the least, if you sell your property after 3 years of its purchase, you can avail a number of tax benefits as the returns will be treated as a Long-Term Capital Gain instead of a short-term one.
As per an Indian Express article, Telangana has been ranked as the “second hottest real estate market in India” in 2018. This means that if you invest in a luxury villa in Hyderabad, the market value has a great chance of appreciating by the time you resell it.
We at Levonor have just the place if you wish to purchase a beautiful villa in Hyderabad.
Prazanta: Our current project is the crème de la crème of villas in Attapur, with classic yet modernised architecture that is sure to captivate your taste and pocket.