Do’s & Dont's on Investing In Real Estate In India for NRIs

Introduction India is a lucrative market for real estate investment for NRIs. With the relaxation in Indian real estate laws & regulation, buying a property has become a walk in the park for a Non-Resident Indian. The process is not only less complicated but less time-consuming too as long as the funds are sorted out. The documentation process is straightforward, and it can be done by just producing a valid passport, address proof, PAN card, and recent photography.

However, an NRI cannot buy agricultural land, plantation property or a farmhouse in India without special permission from RBI & Indian government.

Do's: 1. Visit the Site: Property purchase is a huge investment so before making any investment decisions do visit the site to get the feel of the property rather than relying on photos, email & phone conversation with the property developer.

2. Ask Questions: Ask questions to the builders, bankers and the lawyers about the property cost, handover date, warranty program on the property, financial plans available, additional fees, legal complications, etc. The more questions you ask, the more you know on what helps in making sound investment decisions.

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3. Hire a Lawyer: It is always a good option for an NRI to hire a lawyer to deal with the property. No matter how much research you have done staying far away from the property, you would still have missed out something. A lawyer helps you with all the legal formalities of the property, so hire a lawyer who is expert & has experience in the real estate field.

4. NRI's are Eligible for Home Loan in India: Banks offers home loans to NRI's for 10-15 years & the loan amount varies with the NRI's age, education, income, etc. The documents to avail the loan varies based on the country of settlement.

Dont’s: 1. Don't Trust Unknown Developers: There are many developers in the market & doing business with the trusted developers is a desirable option over an unknown builder who is offering properties at a lesser price. Always check the developer's credentials before doing the business.

2. Don't Get Carried Away By Developers Sweet Words: Many developers promote their projects as exclusive to NRIs; this is nothing more than a marketing gimmick. Don't get carried away by such words, instead be smart to evaluate the property based on the location, facilities, developers brand, etc.

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3. Don't Completely Trust Others: You can ask for others knowledge on different aspects related to property but rely on your own instincts to arrive at a conclusion.

Source: https://bit.ly/2Od7e54