While an NRI investment may seem like the perfect way to kick start your Indian settlement plans, they must be handled with great care and consideration before proceeding. Various obstacles can present themselves as you seek out the investment opportunity that is right for you.
In recent economic times, it has proved a fruitful endeavor for Indian nationals to seek work from abroad. Once employed these NRIs, or Non-Resident Indians, send their earnings to their families at a profitable conversion rate, increasing the overall amount of profit. It is only natural that such individuals might also want to invest their funds in other opportunities, such as purchase of property. India provides such options to NRIs, but there are several important things to consider before continuing.
The NRI Investment Market of 2015
The current investment appeal for NRIs resides in the residential market, as this sector has performed poorly over the first half of 2015. The real estate sector’s decline has also given rise to stern debates in assemblies, which are forcing the respective local bodies to take countermeasures so as to revive the fledgling state of affairs. This has piqued the interest of many NRIs as it offers them the perfect ecosystem to buy better residences on a cut-price deal. This is why such individuals have been looking into various forms of property investments that their dollars or pounds can purchase at a more affordable, bargain price.
When in Doubt, Find out for Yourself
For an NRI heavily invested in your occupation or business abroad, it might seem more feasible to inquire about potential property investments while remaining overseas. This can consist of asking friends or family to speak with locals to find out anything they can about a project. While this knowledge can prove useful at times, it is unwise to base your future actions off of this information alone. Locals can be misinformed and may provide inaccurate facts. The first order of business should be to evaluate the builder’s track record. Someone with a non-existing record might not be the best to trust with your funds, due to their potential unreliability.
Visiting the project in India for personal evaluation is the smartest way to begin an investment relationship with a builder. Comprising a checklist of qualifications can also help to either approve or eliminate potential projects. Along with assessing the former track record, checking out the finality of the building location is also important. Additionally, if you are looking to purchase a flat in the pre-launch stage, acquire the help of a lawyer before proceeding in order to assist with the evaluation of the legitimacy of the project. You can also check real estate websites like commonfloor.com to get a better idea about the kind of projects available in the locality of your choice.
Evaluate Property Size
As an NRI, you might be accustomed to the larger scale standards of international apartments, over the smaller scale inner-city apartments of India. Generally, the farther out that you seek your residence, the more space potential it will have. If you are looking to live in a residence of bungalow-like proportions, be sure to check the outskirts first.
Stay Away From Investment Ploys
Given the capital-intensive nature of real estate, it is very important to assess your options before selecting the residence of your choice. Whether you are looking to buy for yourself, or seeking a rental property to gain return on investment, take your time to consider all of your options. Weigh the positives and negatives of each, and if possible, consult a professional. The catcalls of “NRI projects” and “special offers” are simply ways to entice NRI buyers. The project and property should be assessed based on its location, legal legitimacy, amenities and facilities, and the strength of the builder’s brand.
Complete Tax Paperwork Properly
If you have already purchased a property, it is crucial to file incumbent taxes on both the property and any income obtained from the property. Additionally, if you do not have a PAN number, the investment would be impossible altogether. The channel of payment for the purchase of property should also be known and confirmed. If you are unable to be present at the completion and signing of your deal, it is acceptable to appoint a trusted Indian resident to complete this work. Ensure that this individual is trustworthy and well-known.
Reviewing these tips before undergoing an NRI investment can ultimately save you additional stress and frustration in the future as your property is being completed.