The Indian real estate market is one of the strongest in the world. One of the few countries did not experience a dramatic slowdown or crash during the recent global recession.
Non-resident Indians (NRIs) are aware of this and opt to participate in the flourishing Indian real estate business. Many NRIs worldwide like to acquire a home in India for the nostalgia and connection to their motherland
If you are looking for a house loan, make sure you have done your homework first. Investing in Indian real estate requires careful consideration of several factors, including the property’s location, age, and the cost of nearby comparable properties. Banks allow NRIs to borrow 80-85% of the property value and pay it back in 5-15 years instead of 30 years for native Indians.
The cost of commercial property is higher than the cost of residential property. Investing in a residential property is often less expensive than a commercial property. Commercial properties may be more advantageous if you start a business by converting a residential property to a commercial. Consider the lengthy process of converting your property before deciding on what kind of property to buy.
Investing in residential property in Mumbai, Bangalore, Pune, Jaipur, or the surrounding tri-city area makes sense if you have a long-term perspective (10+ years). For example, Pune has been named India’s most livable city many times in recent years.
Buying real estate, especially outside of the city where you now live, is a significant financial commitment that should be properly considered before making a choice.. You’ll have to make a crucial decision on which property developer to work with. Connect with the developer’s representatives and solve all your inquiries and worries. Choosing a reputable builder is your best chance.
In India, the NRI is obligated to pay tax on the amount of capital gains realized by the NRI. A long-term capital asset kept for more than 24 months receives the indexation benefit taxed at 20%.
Get a list of essential documents, the property purchasing process timeline, and the financial element. Required documents include passport, work permit, valid visa, wage certificate, and PAN card. You also need a local contact and a power of attorney to a trustworthy individual, preferably your chartered accountant.
For non-resident Indians, investing in real estate is impassioned. Non-residents buy land for various reasons, including the desire to own a second home, a diversified portfolio, or just to keep ties to their homeland.