Investing in real estate is always a better option than squandering your money in some other assets. For that purpose, Indian Real Estate market is the most lucrative market across the globe for the NRIs.
Investment made in real estate today will surely bring higher appreciation in the future. Before making investment in India, certain provisions contained in Foreign Exchange Management Act are need to be taken care of.
Foreign Exchange Management Act (FEMA)
The provisions given under this Act, are about how a citizen living outside India could acquire property in India. According to the provisions of this Act, an NRI could acquire property like any other resident of India subject to certain conditions. The provisions for acquiring property are given below.
What needs to be checked before investing?
Before making an investment the NRI should be very careful in preparing a strategy for the investment. Because strategy for every investment is different. For instance, the investments is made in residential house property. For that, there is provision under the Income Tax Act, that if a loan is taken for acquiring the residential property, then deduction of Rs. 1,50,000 could be availed on interest amount.
Benefits to Invest in Indian Real Estate.
There are innumerable benefits of investing in Indian Real Estate. But if we have to take top five out of them then, those will be the following.
Various Indian Acts have made the investment rules and procedure much more simplified for the NRIs. These provisions are the following:
Income Tax Act,1961
Likewise, any other Indian, NRIs could claim deductions under this Act such as, deduction of Rs.1,00,000 under section 80C on the totality of the income tax. Deductions on the Income from house property given under section 24 and various others.
This act treats Indian citizens whether Indian residents or not in the same manner except in the case of agricultural/plantation land or farmhouse.
Reverse Bank of India
RBI has also made it’s policies liberal for the investments made by the NRIs.
Investing in one’s native country always gives a sense of belonging to a person living abroad. It helps in staying connected and rooted with their indigenous country. One could anytime visit there and meet their friends,family, relatives. Cultural traditions of their nation could be easily enjoyed.
Most of the NRIs who own real estate in India and use it as their place of accommodation for their infrequent visits, could easily earn some extra monetary benefits via leasing it. With this, some extra bucks would be earned and the property will be maintained.
These benefits are available to senior citizens for their personally owned homes. By this policy, they can earn some money from the banks.
India is the fastest growing economy. The prices of its real estate are not as higher as that of other countries. So, one could easily make an investment in India, at a very reasonable price.
The investment made by NRIs in the Indian Real Estate will fetch him greater rewards than in any other country. As nowadays, hassles are less, tensions are less, tax provisions are simple, provisions for repatriation are simple and easy, which means it is wise to invest in India. In spite of all the monetary benefits you will also stay connected to India.