Posts Tagged ‘Real Estate’

Real estate for the eager NRI

April 12, 2013

When it comes to investments and returns NRI’s across the board are ever eager for such opportunities. Making the government even more eager to please and attract such investors from abroad. Real estate is constantly drawing the NRI attention and with a stabilized market looking good, these investors are most ready to buy.

The Reserve Bank of India has permitted those NRI’s with Indian passports and people of Indian Origin, to freely put their money in real estate (residential & commercial) and has increased the number of such investors on account of a depreciating rupee value and the offer of better returns. For reasons sentimental and for a sense of security, a homeland investment makes quite the number of NRI’s happy.

On an interesting note, the RBI along with Foreign Exchange Management Act (FEMA) has made rules and regulations lenient for NRIs, by not only simplifying investments policies, but also providing repatriation of capital involved. While an investment promotional council by the government is further creating a more investment-friendly environment appropriate for NRIs.

How NRI’s can invest in Real Estate?

According to the regulations of FEMA and RBI, an NRI is permitted to make specific investment in real estate and is allowed to do the following investment in property:

1] Any immovable property can be purchased by NRI in India other than any agricultural land, farm house and plantation property.

2] Get any immovable property as mentioned above by gift from an Indian resident, Indian citizen residing outside India or person of Indian Origin.

3] Obtain any property by inheritance.

4] Transfer immovable property to any resident of India by sale.

5] Transfer any agricultural land, farm house or plantation land to any resident of India by gift.

6] Transfer residential or commercial property by means of gift to any person either residing in India or abroad or person of Indian origin.

Sources of Finance
Financial institutions consider the NRI Diaspora, one of the most sought after clientele and aim at offering, such a potential group with valued added terms and services. Keeping in mind that NRIs tend to be prompt at the time of repayment. Not to mention, that inward remittance and return on investments via, rent/dividends are a big bulk of business offered by NRIs.

The RBI has also predetermined norms in home loan for NRIs buying any property:

1] A maximum of 80% amount is financed by the financial institution. Rest should be paid by an NRI.

2] The remittance of the amount for down payment can be done from the place of residence by normal banking channels, i.e., NRO/NRE account in India.

3] Furthermore, an NRI has to repay his principal amount as well as interest part from that similar channel only.

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The Best NRI Investments

October 25, 2012

It has long been debated about what is the best NRI investment. Is it gold, or is it real estate? Like with all things in life, there are differing views. While experts might suggest going with an easier & safer option like Gold; my own view is that one should go in for property instead of gold.

Let me explain some simple reasons I have:

Gold may be easy to buy with many online services and may be a safe option to invest in because it will only appreciate. But so will property. The Indian government has now made it easier for NRIs to reduce the paperwork, the red tape, and the formalities. That, combined with more and more builders and real estate developers making NRI-friendly projects where plans, payment schedules etc are tailor-made for NRIs is all making property just as compelling an investment choice as gold.
Now let us examine the safety of a gold investment vs. that of property. Again, I admit that experts say Gold is safer, and there is probably some truth in it too. But property, if bought in consultation with your well informed relatives/family/friends advice back home in India; can be much more rewarding as a return of investment, and in terms of appreciation than gold. By studying the market carefully and taking the help of a good realtor, an NRI can really get into some extremely lucrative propositions.
My last reason is personally the most important one. NRIs like me miss India. It’s as plain and simple as that. So to me, buying property in India, especially if it is in the same city as my family, or in an area where I intend to live, or in a place that I grew up; becomes the single most emotionally satisfying & fulfilling decision. And the intangible fulfilment of that emotion just cannot be measured in monetary terms. It is invaluable!

Add to that the fact that you are investing in what will in all likelihood be a sure shot good-investment; to me, there remains no debate – I would buy property over gold, any day.

 


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