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How NRIs can Benefit by Buying Property in Mumbai?

by Savya Sheth Property Consultant
Non-Resident Indians (NRIs) are increasingly investing in Indian real estate. Lower interest rate and increasing price stability are the two primary reasons considered behind this investment surge. According to the report, NRIs contribute approx. 8-10 per cent of the property sales in India. Mumbai, the centre point of Indian real estate, has been top listed city for NRIs for investment. The financial capital city of India always has interested investors to buy properties as it offers lucrative options.

However, for an NRI willing to buy a rental property in Mumbai, it is important to be aware of Income Tax Act and Foreign Exchange Management Act. NRIs have to consider these two acts before investing in the city. The good part is, Indian citizens residing outside India is permitted to acquire immovable property without any restriction. The NRI is privileged to buy assets that an Indian buyer has with regards to the ownership of the property.

International property consultants in Mumbai has witnessed a steep rise in approach by NRIs seeking investment opportunities. Let us check some of the benefits NRIs can earn while investing in Mumbai's real estate:

A Promising Future Investment: In recent times, the real estate price of foreign countries has taken a dip. The similar situation has witnessed in Indian cities. However, Mumbai witnesses an opposite scenario. The reason is the city invites people from remaining parts of India to earn well. This migration has resulted in an increase in the real estate price. This clearly shows that the investment in Mumbai's real estate is quite impressive. So if an NRI buys a property for rental purpose or just as an investment, then it is a promising investment that can give a positive return in future.

Deduction through Rental Income Tax: As the NRI can invest in Mumbai's retail property without any restriction; the property can also be placed for rental basis. The rental income taxes derived from the NRI, a 30%deduction is expected towards the maintenance of the property. In addition to this, deduction from rental income tax is available for NRIs on the property purchased.

Property Sale after 3 yrs: According to the property consultant in Mumbai, an NRI can purchase any residential or commercial property and get benefits by selling it after 3 years. Moreover, with several tax advantages, the earning would rise further.

Deduction in Loan Interest: One of the best parts of investing in Mumbai property, like other cities is the NRI can enjoy a deduction from Indian income if taken a loan for the property. The maximum deduction in the home loan is approx. Rs 1, 50,000. However, it is important to consult with international property consultants in Mumbai to know the changes happening in the home loan interest rates.

Conclusion:

Whether investing in Mumbai's property for the first time or already invested, seeking valuable advice from property consultant in Mumbai will certainly help in getting long term investment profit.

About Savya Sheth Freshman   Property Consultant

8 connections, 0 recommendations, 29 honor points.
Joined APSense since, December 13th, 2016, From Mumbai, India.

Created on Dec 31st 1969 19:00. Viewed 0 times.

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