6 basic rules for NRI to consider while choosing a plot in India
Real estate investment cannot be an impulsive decision. One requires extensive research and knowledge before you invest in real estate at a certain location in India. Research, Analyze, Compare and then derive the ideal location of investment for you in India. You can always consult real estate consultants or developers for in-depth knowledge and current price trends in the market. These agents also help you perform the per-post investment process flawlessly without disruptions. However, NRIs have certain basic rules to follow while they consider investing in the Indian real estate market.
1. Documents Required For Investment
Certain basic documents are required for the procedure to kickstart: your identity document, PAN permanent account number, password, recent photograph, and address proof. All these documents must be provided intact during the execution of all the legal formalities.
2. FEMA Rules For Investment
All the real estate transactions initiated by NRI fall under FEMA (Foreign Exchange Management Act). Being an NRI, you can invest in residential and commercial properties without intimidating RBI. However, if you want to invest in agricultural or industrial land, farmhouses or plantation properties, there are different procedures and formalities to follow.
3. Payment Account Type
There are 2 types of accounts you choose from to invest in the real estate market.
- NRE Account
- NRO Account
NRE Account –
Through NRE Account, you can fund your foreign currency and convert it into Indian currency based on the ongoing rate that prevails during the time of transaction. The funds can easily be repatriated to your abroad account.
NRO Account –
Through NRO Account, you can utilize your Indian currency for investment purposes. You can also deposit foreign currency into this account for additional payment procedures. The tax deduction interest rate at the source is 30% for this account. Also, the funds cannot repatriate abroad.
Therefore, choose the account type wisely, keeping all your funds planned to avoid any kind of disruption in future.
4. Loan Facility
The Indian government has also authorized banks and housing finance firms members of the NHB (National Housing Bank) to offer home loans to NRIs who wish to engage in the country’s real estate industry. However, only Indian cash should be used for the entire transaction. Once accepted, the loan money will be directly credited to the seller’s or the developer’s account rather than any other foreign account.
You may deposit funds into FCNR (Fixed Deposit Foreign Currency Accounts) or use the accounts NRE or NRO to repay loans.
5. Contact prominent real estate developers
It is challenging to have comprehensive knowledge of the current developments in the Indian real estate industry because you live abroad. It is important to get in touch with real estate agents or developers to obtain comprehensive research, progressive predictions, growth opportunities and predicted ROI depending on your budget and chosen areas.
6. Power of Attorney
In order to complete this agreement, it is almost impossible for any NRI to travel all the way to India. Because of this, the Indian government permits citizens to grant POA (power of attorney) to dependable family members, relatives, and acquaintances who can handle all legal matters without the NRI.
So these are the 6 basic rules for NRI to consider while choosing a plot in India. Look no further than G Square if you’re looking for a real estate developer who can provide thorough direction and research. We are south India’s largest and Tamil Nadu’s No. 1 real estate developers, with a wide range of spectacular projects. We have successfully assisted numerous large industrialists and corporates in investing in high- ROI-producing areas. You can also contact us with your desired requirements through our website.