Many middle-class Indian households firmly believe that going out of the country and grabbing the coveted title of an NRI is the ultimate benchmark of success. Well, with better opportunities and first-world facilities available, one can’t really blame them for aligning their ambitions geographically.
However, there is a reason they are still not entirely British or American or of any other nationality they choose. Rather, they are still Indians, albeit Non-resident ones and have certain rights back in their home country. But all is not roses and petals for them too. There are NRIs who wish to come back to India and settle base here.
For that, they want to purchase Real Estate. Owing to the various rules and regulations, it becomes a tedious task. That being said, the government has formulated various schemes and plans for NRIs, ranging from fixed deposits and mutual funds to real estate investments.
So if you are an NRI who wishes to come back to his nation and start afresh and your first step is investing in Real Estate, or maybe if you just want to own a property back in the nation, here are the factors that you should keep in mind.
Be wary of the Government Regulations
Do not take your NRI status for granted. Educate yourself on government policies. While the rules and regulations have been simplified and diluted a lot, there are still certain things to be mindful of. There are certain properties that can be invested in and certain which cannot.
Again, for investing in some you need RBI’s permission while you may not need it for others. Additionally, get to know the tax implications, both in India and your current country of residence.
Identify various types of properties and the payment process
As we said, while there are numerous schemes that have been made to make things easier for NRIs, they still do not enjoy as complete a freedom of investment as a resident. Thus, there is only a limited type of property that they can invest in.
As per RBI’s Foreign Exchange Management Act, NRIs have the authorization to invest in any number of unmovable properties. Here too, while they can invest in any number of commercial and residential properties, they can’t procure or purchase agricultural lands.
Hence, do your research and narrow down the property you want to invest in. Once the property has been found, payment is yet another aspect that you need to be aware of. As per the Benami Transactions Bill, cash transactions have been blocked for NRIs. The only acceptable transactions are via their NRE/NRO accounts, to encourage transparency. Facilities of home loans and EMIs are also available.
Know the power of Attorney
There have been multiple instances of NRIs getting duped by developers and dealers who take advantage of the fact that their buyers don’t live in the country, let alone be aware of its rules and regulations.
That’s why it is extremely important to have a power of attorney in place. Make sure that you bequeath the same in a person whom you know well, and one who knows the country and its real estate market well.
Let’s be real, the world is going digital. The biggest advantage of this is that unlike old times, you are not required to be physically present and run pillar to post, wasting much time, energy, and money in the process. All it takes is good research online, given most of the good RE developers have a social media presence, and a phone call or a video call. Obviously, a few physical visits are required, but knowing your digital handles and social media well helps a lot, given the geographical and in some cases, time zone restraints.
Amidst all the scarcities and chaos, Real Estate is still the meatiest investment. Owing to currency advantages that most NRIs have, having one RE investment back home is indeed a great choice, but make sure that it is a wise one too.
Tags: Advantages of NRI, Government policies, NRI, Opportunity to invest, Payment process, Real Estate Investment, Research online about real estate, Rules and regulations of investment, Steps for investment