WHY INDIAN REAL ESTATE IS ATTRACTING NRIs?
An affordable investment, a means to stay connected with their roots, a retirement plan – these reasons have always motivated NRIs to invest in the Indian real estate. What stalls them from doing so is the fear of getting fleeced and the legal rigmarole. This is no more the scene now ever since the Indian laws have gone through some changes.
Here’s how and why Indian real estate is attracting NRIs:
RERA as a safeguard against fraud and delay:
- As an NRI it’s difficult to physically visit the construction site to keep a tab on the progress. Likewise, verifying the builder’s credibility from overseas also becomes a challenge. NRIs now finally have a solution for these problems – the RERA (Real Estate Regulation & Development Act), 2016.
- This act compels every builder to first register their project with the RERA authorities and then proceed with advertising and selling. It is also mandatory for the builders to upload all the government approvals, project documents and plans on the RERA website for public access. These measures assure the legal sanctity of the property with a simple click from any corner of the world.
- NRIs also need not worry about their money getting trapped in a stagnant project. As per RERA, if the builder fails to give you the property by the deadline, he is bound to return your money along with the interest.
- If you fear that the builder might deviate from the original plan/ design taking advantage of your absence, then RERA has a way out for this. No builder can change the approved design or amenities without the written consent of at least two-thirds of the buyers.
The RBI rules regarding FDI and FEMA (Foreign Exchange Management Act) policies have become more NRI friendly.
With the implementation of GST, a uniform, simple and single tax is now applicable. NRIs don’t have to go through the hassles of decoding several indirect taxes.
Prohibition of Benami Property Transactions Act (2016) to curb real estate fraud:
As per the revamped act, a benami property (an estate that belongs to person A on papers but is paid for by person B) is now considered illegal if the person on whose name the property is bought is unaware of such a transaction and/ or the person paying for it is untraceable and fake. This is really helpful for NRIs who are planning to buy a second-hand property.
Investment opportunities through REITs (Real Estate Investment Trusts):
These trusts are like mutual funds where money from different investors will be pooled and invested in commercial properties. The advantage of REITs is that even an NRI with a small budget can invest. Moreover, such trusts have to be mandatorily listed with the stock exchange authorities, thus making the trusts authentic.
As an NRI it’s always more convenient and safe to opt for reputed builders. If Hyderabad is where you are planning to invest, then choose the best – Aparna Constructions.
Last updated on April 11, 2018