The Dos And Don'ts Of Nri Property Investments

The real estate investment is the fast-growing investment option today. It is not in demand just amongst the Indians but non-resident Indians (NRIs) as well. Real estate investments are a lucrative option, despite the different market rate. Apart from exercising due diligence, it is essential that they adhere to the framework related to NRI property investment in India.

NRIs could either buy or sell or rent a property in India. The realty sector has always been a perfect investment option. NRIs have the option to invest in commercial or new residential projects in Thane, considering it is the new hub of the town.  

However, before taking the plunge, NRIs have to remember the following dos and don’ts:

• Tax benefits: Not many NRIs are aware that they can invest in real estate and gain tax exemptions like other Indian residents. They can claim tax deductions on principal repayment and interest rates on home loans. Besides, you also are excused from income tax on the profits earned on capital gain, if the property is sold two years after the date of purchase.
  
  

• Property prices: NRIs should make the most of slow real estate market. Real estate markets are not steady all the time. It is advisable to make the most of the opportunity when the rates are low. This way you can get the house of your choice. Many investors wait for the prices to come down, which happens rarely. Nevertheless, it is beneficial for you.
  
  

• Rental income: NRIs can easily invest and earn rental income without any hassle. Although 30 per cent of TDS gets deducted by the tenant, the outstanding sum gets repatriated under the rule of Foreign Exchange Management Act (FEMA).
  
  

• Retirement benefits: The reverse mortgage concept is usually famous in the US. India, on the other hand, is still reaching that stage. Those who are planning their retirement can benefit from NRI property investment in India and can gain the advantage of a reverse mortgage. The amount acquired from the bank for this type of loan does not come under the taxable slab for the NRIs. This way an NRI can enjoy a comfortable retirement. Under the reverse mortgage concept, NRIs can even take money from the bank.
  
  

Nowadays, real estate portals have an NRI corner where all their queries concerning property investments get resolved in a jiffy. They do not have to hunt for an exclusive broker for the same.

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Created on Apr 25th 2019 02:07. Viewed 388 times.

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