NRI’s wishing to invest in Indian Real Estate never had it this good. RERA rules are almost final, GST is about to be rolled out, infrastructure improvement has boosted real estate markets. Still not all NRI’s can ride the property run because of factors ranging from possible fraud scares, lack of knowledge or sound advice.
Here are some tips for NRIs to make most of the coming upside in Indian Real Estate.
1. Goal setting – An NRI should first clear expectations as to how much risk they can take and how much money they can chip in. Also important is to determine whether he/she will be end user or investor. The factors are important to be taken into consideration as they will lead to prudent decision making for property investment.
2. Developer’s Goodwill – Thee goodwill of the developer or lack of it, is another major thing to look out for. With the use of internet, it is not very difficult to check out whether builder has had a sound record of implementing projects or not. That could be one way of knowing whether the developer is reliable or not.
3. Location – Needless to say, location is one of the most important things to consider before purchasing real estate. A suitable location would be the one with quality basic infrastructure and good connectivity.
4. Local regulations – It does well to go through the policies and visions of the local government before investing. This gives a person a fair idea as to how much progress can be expected in the region. Also, local policies will guide the NRI investor as to the kind of investment he is getting into.
5. Legal & Tax issues – It is essential for an NRI to go through details of past transactions on the prospective property. Also, any tax obligations should be studied beforehand as that would throw light on the expected ROI.
Many NRIs invest into property for investment purpose. It is recommended to stay invested for a long term to get the maximum benefit for capital appreciation and save tax. Also, it is important that like any investment product, a clear exit strategy be mapped out.
