“Your branches can only reach high if your roots go deep”, said Brian Logue. You may have touched the sky, spread your wings, but stay rooted is essential. It’s your roots, which give you that sense of belongingness. It is one of the reasons, why investing in your country, back home is essential. But, when you plan to buy your dream home, luxury villa in Devanahalli Bangalore, then there are certain things about which you must know before you take the leap forward.
Here are 5 things that an NRI should know before investing in real estate in India.
Type of Properties to Invest:
Know the Purpose:
Financial Transaction & Finance:
Power of Attorney:
An NRI can invest in residential and commercial properties under the rules and guidelines of the Foreign Exchange Management Act (FEMA). While an NRI can invest in as many properties as they fancy, the only restriction is for agricultural land, farmhouse and plantations. But, if it is gifted or inherited, then there is no restriction.
But, before you invest in real estate, you need to recognize the purpose of investment. Is it purely for monetary gains or your retirement home? According to your end aim, you should decide the kind of property in which you should invest. For instance, if you are looking for financial gain only, then investing in a plot can be a wise decision. But, if you want to buy property in India for your family, then you can consider a plot, apartment or villa as per your requirement.
As an NRI, if you plan to invest in commercial or residential properties in Bangalore India you will have to open an NRI account in any authorized Indian bank. All the transactions will be carried through Indian banking channels for which you will have to use your NRE or NRO account. You can also issue Cheque or get ECS done from an NRE or NRO account. But, if as an NRI you want to take a house loan in India, then you should get all the paperwork in place and have it verified by a lawyer. The paperwork for an NRI is different as against an Indian citizen. Moreover, you will have to arrange 20% of the property amount as banks will only finance 80% of the property value.
Once you have the finances in place, you will need legal help in getting a power of attorney made. It is an absolute must if you are investing in an under construction property. You will have to get a power of attorney made either in the name of the developer or person of trusts like a family member or friend. With this, your property will be secured, while it is still under construction.
Like any Indian citizen, an NRI also enjoys many tax benefits by investing in a property in India. Under section 80 C of Income Tax Act, 1961, you can claim a deduction for the home loan interest. Moreover, if you sell the property after three years, you can get benefit under long-term capital gains tax by using the money in buying another property.
With investment made easy in the Indian real estate market by the Reserve Bank of India, an NRI can easily make a house in his hometown. But, when you plan property investment in Bangalore India, it is essential to take into cognizance the market scenario and as far as possible to invest with a reputed developer whose projects are registered under Real Estate Regulatory Act (RERA). If you plan to invest in smart and luxurious living space in Bengaluru, then your search ends at Merusri.
You can view all our projects here. We have several investment options in plots and villas. All our villa projects in Devanahalli Bangalore have the relevant authority approvals with finance options from leading banks, making it easy for you to invest in any part of the globe. Let’s help you stay connected to your roots by helping you have a home in your country, your India. Grow immensely as you stay connected, as you stay rooted.