The non-residents of India have shown a keen interest in investing in the real estate market of our nation. The government has brought in RERA. And more regulations in bringing transparency and accountability to reassure greater interest of the NRI. Investing in the Indian market can give more returns for the NRIs with lower capital investment.
The tax benefits and foreign exchange regulations: the NRIs abide by the Foreign Exchange Management Act (FEMA) regulations. If they have an Indian passport there is no need for the approval from the RBI for investments. All the loans applied will be approved and should be paid in an Indian rupee, and Indian laws and taxation norms have to be followed. The tax benefits are allowed under the Income Tax Act and can be used to avoid the tax burden.
Eligibility: NRIs can invest only in residential or commercial properties. They are not eleigle for agricultural or farmland, however, they can inherit these lands or receive them in the form of gifts.
Power of Attorney: This is a document that allows you to act or make a decision on behalf of another person. The NRI should get all these documents cleared up.
Investing in Commercial Properties: ensures good returns and capital appreciation. The well-located commercial property can be tenanted and can gain 6 to 10% returns on the capital, in the long run, can even double the returns on residential property. Investing in the Indian market can gain great returns if the research is done well.
Quality Markets: invest in properties that have high appreciation potential. The south Indian market has seen a huge surge in IT and commercial development and with IT business and other upcoming developments it is in the boom. With a healthy advisor, one can expect good returns in a very short time.