Over the past few decades, the NRI population has been growing rapidly. More and more NRIs are getting drawn towards investing in Indian Real Estate due to certain factors. Higher currency valuations, better social infrastructure, and improved standard of living are some reasons. They wish to invest back in India after having saved significantly.
NRIs find India’s Real Estate landscape, e.g. Lucknow, to be the safest and highly profitable due to a variety of reasons. Indians living abroad, such as Persons of Indian Origin, NRIs, and Overseas Citizens of India would love to own their houses in Lucknow, and more real estate properties. They would prefer to buy Luxury flats in Lucknow, Flats under 1 Cr, Flats above 1 Cr, Villas in Lucknow, etc. This is indeed a healthy trend that seems to gain momentum and is the right time to invest in the market if prices have bottomed out.
Below are some factors for NRIs to keep in mind while investing –
1 – A long term view for tax benefits: Minimum three years of investment is defined to give you tax benefits. This is helpful when buying a property for investment purposes. Income Tax rules have specified that if you sell a property within three years will be treated as short term capital gains and also taxed. If the property or any Flats in Lucknow is sold after three years, the IT department offers an option of reducing long term capital gains tax.
2 – File IT returns in India: If you buy a property, flats in Lucknow or any Villas in Lucknow, you would have to pay property tax in India along with stamp duty and registration fees for the related property. So, keep in mind all the costs before you plan an investment. The best option is to hire the services of an accountant to file IT returns and paperwork in India. It is also advisable to get a PAN card before making an investment to ease financial procedures.
For more guidance, consult a Best Real Estate Agent in Lucknow for more related information.
3 – Know about the EMIs: The Reserve Bank of India allows NRIs to get loans up to 80 percent of the value of the purchased property. These loans will be disbursed in Rupees and they will be paid back in the same currency. Be careful, if you are planning to pay the equated monthly installments with your earnings abroad. Make sure that the major part of loans will be paid from rental income from a property.
4 – Check the offers by any Real Estate in Lucknow: There are many Real Estates in Lucknow, which organize exhibitions for NRIs and give them the number of offers. Some of them offer loans on the spot from top banks and other related discounts. Research about these offers before you make any investment.
5 – Taking the money back is not easy: If you are buying a flat in Lucknow, or a Villa in Lucknow, it is not easy to take back the proceeds. Capital gains tax and Income tax will have to be paid in India.
It is also seen that, if your home country does not consider the money you gained has been taxed, then there is a possibility that you may have to pay tax twice. The long-term capital gains tax can also be 20 percent high. This will, therefore, reduce the amount of profit you will gain from it.
Lastly, whatever property or flat is purchased in Lucknow, always assure that it is LDA approved to avoid unwanted pleasantries. NRIs must do a proper survey to invest in India, to gain benefit and get returns accordingly!
An article by Nidhi Rastogi