Investing in Indian real estate can give NRIs the benefit of a high return on their investment and a lower initial capital investment. To ensure that there are no sudden obstacles in your investment journey, there are certain rules and regulations for NRI investments that you need to keep in mind.
If you are an NRI and are interested in investing in India, you need to be aware of the following.
1 – Eligibility:
NRIs are eligible to invest only in residential like Apartments in Lucknow, Villas in Lucknow, and Flats in Lucknow or Commercial properties. They are entitled to inherit these properties or get them in the form of gifts. In some rare cases, the court in your jurisdiction can approve a request to invest in some restricted properties, but these are only judged on a case-by-case basis.
2 – Foreign Exchange regulations and Tax benefits:
NRIs holding an Indian passport need no approval from the RBI to invest in the Indian realty sector. All loans applied for in India are to be repaid in Indian rupees, and Indian laws and taxation norms are to be followed during investing in real estate. It is of vital importance to get familiar with tax benefits allowed under the Income Tax Act as they can be used to avoid double taxation and reduce your tax burden.
3 – Power of Attorney:
If an NRI is unable to visit the country to participate in property transactions, he or she must ensure that the Power of Attorney is delegated to a suitable person or organization to sign on his/her behalf and that the document is duly registered to avoid fraud or disputes. Your POA will be able to sign documents, inspect the property and act in your best interests in case you are not able to be physically present.
4 – Investing in Quality Markets:
Investing in a property that has high appreciation potential is vital for a good return on investment. The Indian market has seen a huge growth in the e-commerce and real estate industry, with cities like Lucknow, Delhi, Noida, NCR, and others, are offering good returns on Investment. To stay updated on real estate trends in India, you can consider enlisting the services of a realty consultant. These consultants can also ensure that you avail property management services in all respects for both better safety and peace of mind.
One of the best Real Estate Consultants in Lucknow, is Smart Infra Realty. They have a great and experienced team that has all the knowledge and information regarding property management services.
5 – Choosing a reputed builder:
If you are an NRI, it is extremely important to choose a builder who is backed by a very good reputation in the real estate industry. Since you may not be physically present to check up on the status or the quality of the flat or houses in Lucknow and other cities, you need to be able to trust the builder you choose to invest in.
6 – Investing in Commercial Properties:
If you are investing in a property for the sake of good returns, on commercial properties that are in demand by companies. This will ensure consistent returns and good capital appreciation. A well-located commercial property tenanted by companies can fetch anywhere between 6-10% returns on invested capital, almost double that of the returns on residential property.
Investing in the Indian realty market can be very rewarding. Seek out the right advice and ensure that you follow all the rules and regulations carefully before investing in real estate in India. If you are an NRI and aren’t sure about which property to invest in, head over to Smart Infra Realty.
Our exclusive range of luxury homes, villas, flats, and apartments located in some of the best areas in Lucknow, and NCR, Delhi, Noida can help you find the perfect real estate investment!