NRI Property Corner
Why Invest in India?
NRI investors’ top choice has historically been the Indian real estate market. This is demonstrated by the $13.1 billion that accounts for NRI investments made in India last year, which is likely to increase by 12% this year. This expansion can be ascribed to the rise in housing demand brought on by growing urbanisation and rising personal disposable incomes. In addition, thus far in 2022, the value of the Indian rupee has fallen by over 5.2% versus the US dollar. This results in a major victory for all NRI investors, along with real estate’s capital value increase, rental return, and digitisation of the process.
What are the advantages of NRI's Investing in India?
No matter where they go, NRIs always miss their roots. The pull towards the nation and its people is unfathomable. In the quest to establish a connection with their motherland, investing in real estate could be a great opportunity. In India, unlike many other western countries, there is no restriction on the number of homes or businesses that one may own. Properties have a good appreciation rate and have an income source generated through rentals. The appreciation rate provides significant returns for a small initial investment. Additionally, the advantage of requesting tax deductions on revenue is available only in Indian real estate investments.
Non Resident Indian (NRI) means a person who has gone out of India or who stays outside India, in either case for or on taking up employment outside India, or for carrying on outside India a business or vocation outside India.
An NRI buying an immovable property in India does not require any special permission.
ADDITIONAL DETAILS ON NRI INVESTMENT
How can NRIs Invest in Indian Real Estate?
When buying property in India, NRIs need to open an account with one of the approved Indian banks. NRI property investors are required to conduct their business via Indian banks and use NRE/NRO accounts for any inbound money transfers.
Should NRIs Invest in Indian Real Estate?
Different tax deductions are permitted by Sections 80C and 80TTA of the Indian Income Tax Act. NRIs are now permitted to continue investing in India’s real estate market thanks to the simplified payments legislation. When buying a residence, NRIs can put money in their NRO account to use as a means of paying the seller.
Why should NRIs Invest in Indian Real Estate?
The NRI community has a significant advantage since they may use their hard-earned money from outside to take advantage of lucrative investment possibilities in India. Real estate investing has gotten cheaper and more reachable, with the Indian rupee at a record low against the dollar.
Home Loans
What Should Be The Age And Qualification For Availing Home Loan?
The Minimum Age Of Eligibility For An NRI Is 18 Years And It Goes Up To 60 Years Or Retirement Age (Whichever Is Earlier) At The Time Of Loan Maturity. The Age Criterion May Vary From Bank To Bank And Other Lenders
Can An NRI Apply For Home Loan At Indian Banks?
Yes, NRIs Can Avail Home Loans From Indian Banks To Purchase A Property. The Procedure To Avail A Home Loan Remains More Or Less The Same As Applicable To Any Resident Indian.
What Is The Eligibility Criteria Required For NRI To Purchase A Property In India?
The Eligibility Is Calculated In The Same Way As It Is Done For Resident Indians With Special Emphasis On: - Age & Qualifications - Current Job Profile And Work Experience - Chances Of Continuing Abroad For The Loan Tenure - Chances Of Servicing The Loan With An Extended Tenure In Case The Applicant Needs To Return To India
What Kinds Of Properties An NRI Can Avail Home Loans For?
To Purchase A House Which Is Either Ready To Move In, Under Construction Or Bought From Another Owner, An NRI Can Avail Home Loans For: - For Construction Of A Property On A Plot Of Land By Self - To Purchase A Plot Allotted By A Society/Development Authority - For The Purpose Of Renovation Or Improvement Of An Existing Property In India
What Are The Documents Needed For Home Loans?
Documents Such As Copies Of Passport, Valid Visa And Work Permit, Contract Of Employment, Work Experience Certificate, Salary Certificate And Statements Of Non-Resident External (NRE) Or Non-Resident Ordinary (NRO) Accounts Are Usually Required.
Payments
What Are The Payment Options Available For Repayment Of Loans?
The Housing Loan Needs To Be Paid Upfront For The Entire Tenure Of The Loan By Way Of Direct Remittances From Abroad Through Normal Banking Channels Or From Other Financial Accounts As May Be Permitted By RBI. Generally, Payments Are Done Through NRO, NRE, NRNR And FCNR Accounts. These Accounts Change On The Basis Of RBI Regulations.
Can NRI Repatriate The Sale Proceeds Of Immovable Property? If So, What Are The Terms?
In Case Of Residential Properties, The Repatriation Of Sale Proceeds Is Restricted To Not More Than Two Such Properties, If The Property Was Purchased From Funds Held In An NRE Account. Additionally, The Amount Repatriated Out Of India Should Not Exceed The Amount Paid For Acquisition Of The Immovable Property In The Foreign Exchange Received Through Normal Banking Channels Or From The Funds Held In FCNR Or NRE Account.
Can An NRI Sell His Residential / Commercial Property?
An NRI Can Sell Residential/Commercial Property In India To A Person Resident In India, An NRI Or A PIO. Repatriation Of Sale Proceeds Of Residential / Commercial Property Purchased By NRI / PIO
