NRI Investments In Indian Real Estate: The Essential Checklist

While NRIs may need to invest in Indian real estate to benefit from correcting prices and a depreciating rupee, there is much research and careful planning involved. Here’s what you need to keep track of Presently, Indian real estate is a very popular investment option for most NRIs. Buy New Property in Thane West. However, since they live abroad, it becomes more important for them to do proper due diligence before risking their money.

Mandatory Checks:

Nowadays, many Indian real estate developers conduct Roadshows abroad. NRIs should not be entirely convinced by impressive presentations and glossy brochures. They should have someone trusted visit the property’s site and check the ground realities. Like all real estate investments, the location of the project should be attractive and should enjoy good connectivity. Buy your house Apartments for Sale in Dhokali.

Watch Out For:

The real estate sector in the developed markets is better governed and more evolved, unlike India. Here, buyers are often subjected to a lot of hassles. Unless an NRI has a trusted person running errands in India, buying real estate in India could be challenging. Then there’s the management of the property as there are not many companies in India that still offer such services. This makes it all the more essential that an NRI has an agent to collect the rent as well as look after its maintenance. Buy Luxury Projects in Thane West.

Understanding The Law:

NRIs investing in India must understand the laws that govern real estate transactions. There are, for instance, restrictions on how quickly the profit from a real estate transaction can be repatriated. NRIs also require to learn whether their gains will be subject to double taxation.

ROI Expectations:

“The theory of mean reversion suggests that returns from real estate, are likely to be lower than they have been in the recent past,” explains Vishal Dhawan, chief financial planner, Plan Ahead Wealth Advisors. “Therefore, NRIs investing in residential real estate at this point of time, should have reasonable return expectations over a long-term period,” he says. Finally, NRIs also needs to be aware that the depreciation of the rupee against their house currency, will also have a bearing on their returns. Buy New Residential Projects in Thane.