Non-Resident Indians (NRI’s) are a tribe whose number is growing each day gradually. Often parted from their beloved motherland because of family or work, the love for India is what draws them towards the country time and again.
The wish to stay connected to their roots often translates into investment in property in India. If you are one of them, here are some things you ought to know about buying property in India.
According to the latest reports by most experts in the property and real estate agencies, India is a great place to invest in property not just because the plethora of things it has to offer in terms of natural beauty and diversity but also for the ample job and business opportunities in store. India is currently the hotbed for development.
Add to that the international standards of housing that India offers and you will know exactly what makes it such a great place for investment. Perhaps these are the advantages that promote an increasing number of NRI’s to invest in Indian properties. Given below are some pointers that can act as a checklist before you invest.
1. What permissions does an NRI require for purchasing property in India?
To answer this question simply, there are no separate restrictions that apply to NRIs who want to invest in property in India. Yes, that is right! However, having said that, it is important to mention that the restrictions that all Indians face regarding investment in India apply to NRIs as well.
This indicates that an NRI will not be able to pay using foreign currency in case they want to invest in a property here. Any purchase or investment should be made through the Rupee, the Indian currency made through the regular banking network of the country.
2. The acts that govern the purchase of property for NRIs in the country
Before investing in a property in India, it is important that you are aware of the different acts that govern the sale and purchase of real estate in India.
The leading of these regulations is the FEMA or the Foreign Exchange Management Act. This is, of course, combined with the RBI regulations, which naturally govern all the financial activities that go on in the country.
3. The kinds of property that NRIs can invest in
Though there is no restriction on the residential properties that an NRI can invest in, there are certain limitations that can be applied for land purchased for the purpose of profit. For example, an NRI cannot invest in land for agricultural purpose or on properties classified as farm houses or plantations.
4. What are the taxes that apply to NRIs when they invest in property?
The term TDS or Tax Deducted at Source is what applies to NRIs when they purchase property in India. Also, a great relief is the fact that there are no additional taxes that apply to NRIs when they purchase property in India.
5. What are the types of properties an NRI can invest in?
There are certain restrictions on the types of properties an NRI can invest in India. A non-resident Indian can only purchase a property for either residential or for commercial usage.
6. Where should you invest?
So, if after reading about the simplicity of the process of investing in India, you or a loved one is looking out for places to invest, Kolkata is a prime location.
One of the fastest developing cities in the country, Kolkata, and especially the area of Rajarhat located in its suburbs, is just the perfect option for investment for NRIs. Broad roads and efficient flyover connect The V, Rajarhat’s premier apartments to the main arteries of the city.
Relax as you reach a haven away from the noise and pollution of the city. Not to forget, the amazing use of Environics to ensure that your environment at home is free of any radiation and healthiest in the truest sense, thus offering you respite from your otherwise polluted surroundings!
7. Why should you invest in Rajarhat?
Rajarhat is one of the best options for investments for NRIs from all around the world. The area is home to the budding IT sector with most of the offices in the vicinity or the neighboring Sector V area. Cleaner air and a better-developed infrastructure welcome you to this planned and newly built area that is full of like-minded groups of people.
Most of the prestigious educational institutes have a campus in the area, including the prestigious Presidency University as well as the Calcutta University.
The area of Rajarhat is very well connected to the older parts of Calcutta and is just a stone’s throw away from the international airport. Hospitals, including the Tata Memorial Cancer hospital as well as the Ohio Hospitals too, are in the vicinity, in case of any emergencies.
The area is, of course, a visual delight with the open grounds of the Eco park welcoming everyone with its lush greenery and serene water bodies. A perfect playground for kids, this is also home to several water sports as well as an ice skating area.
8. What about the return on investment?
As all of us are aware a return on investment is often what motivates a purchase, whether big or small. And that is precisely the reason which motivates most NRIs to invest in India. There are no restrictions on the ownership of the property that you buy here. In case you do not wish to keep a property empty, you can also rent it without any interference of the state.
This would again bring us back to Rajarhat, which has a very high ROI factor. Since most of the offices are located close to this area, this is a prime land for tenancy. And this yet again makes The V a prime destination for investments from NRIs the world over!