It is said you can take a person out of India but you can’t take India out of a person! The emotional connection to the homeland is strong even when you live and work outside of your country and is one of the motivating factors for NRIs (Non-resident Indians) to buy property in their native country. But apart from sentiments, there are plenty of practical reasons why NRIs find real estate investment in India an attractive proposition. Here are some of the factors that NRIs should keep in mind while investing in real estate in India…
The most important aspect to consider for NRIs/OCI (Overseas Citizen of India) is determining the true value of the property in Rupee terms taking into account inflation and currency fluctuations. The NRI buyer must get a PAN (Permanent Account Number) card as it is necessary for all monetary transactions related to property purchase. NRE (Non-Resident External), NRO (Non-Resident Ordinary) accounts in an authorized Indian bank are required for easy repatriation of funds as well as tax benefits.
Before investing a large amount in a property the overseas buyer needs to evaluate in-depth the location, builder, type of property (commercial or residential but not agricultural land), loan availability from banks etc. also make sure that the investment is within the rules laid down by the Reserve Bank of India and FEMA (Foreign Exchange Management Act).
In instances where the real buyer is physically absent, having a legally valid POA (power of attorney) is necessary to protect against any fraud. Other documents such as a no-dues certificate from the seller, original title deed, clearance of outstanding bills or dues, environment and municipal clearances etc. should be in place and must ideally be done by an attorney.
Investing in real estate has tax benefits for the NRIs where on the purchase of a property they can claim a deduction of Rs.1 Lakh under section 80 C on the Income Tax Act, 1961.
Real estate is an illiquid asset so the NRIs/OCIs need to conduct due diligence before any purchase. But it is also true that with RERA and Benami Act the realty sector has become a more viable investment option for overseas buyers.
An attractive option for NRIs looking for quality residential property is Vaarivana from Pharande Spaces, a premium project of 3 and 4 BHK luxury private and twin villas set amidst vast green spaces. Offering top-class amenities including a 6 hole golf course combined with brilliant views of hills and valleys, Vaarivana is conveniently situated at Urse on the old Mumbai Pune highway, a strategic location close to Mumbai, Pune and Lonavala.
