An NRI Guide to Investing in Real Estate in Amaravati
Investing in real estate in Amaravati has become much more comfortable especially for a non-resident Indian (NRI) who wants to invest in real estate. As a result of the new real estate rules, those who have an Indian passport can invest in real estate in Amaravati as long as it won't be used for agriculture or farmhouse. One of the most critical factor to consider for an NRI that wants to invest in real estate in India is the finance. Below is a guide for NRI who wants to invest in real estate.
1. Regulatory Act
Is there a way an NRI can purchase a property? Yes, with the use of an Indian passport, there is no need for any permission to invest in an estate in Amaravati. To make this task simple, the reserve bank of India has ensured that the rules are quite simple to attract as many foreign investments as possible. For this reason, foreign exchange management Act (FEMA) has been set up to govern investment in real estate in India.
2. Types of properties to invest in
Are there restrictions on the number of properties an NRI can invest in? Limits are not placed on the number of properties an NRI can invest in. An NRI can invest in as many properties as possible and can acquire the right amount of residential estate and commercial properties in India as possible. To obtain the best real estate properties, it should be received in credit approved layout.
When spending in any big budget, research is paramount so also in property purchase too since it involves a considerable amount of money. Such an analysis should include the location and the quality of infrastructure. Even the reputation of the developers and the history of other similar properties. What sources are the best for carrying out such research? Some property exhibitions like those conducted by certain organizations can also help. Confederation of Real Estate Developers Association of India (CREDAI) in your area that often set up displays for non-residents of India where various kinds of properties and investment options are advertised can help you make the right choice. The internet is also a good way of educating and doing research before investing in real estate.
4. Choice of Property
As a result of the merging of Indian origin (PIO) and overseas citizen of India (OCI), these various citizens are allowed to purchase properties in India. Such a citizen may buy residential properties and also commercial properties as long as such properties or lands are not for agricultural purposes. Also having an Indian passport is an added advantage which gives you an edge in real estate investment and the rules under (FEMA) govern this.
It is vital that as an overseas citizen, the evaluation of property as regards to if it is for investment purposes or just a place to stay if necessary.
5. Financial Planning
A person who is an NRI needs to determine his or her economic strategy and expenses involved before investing in this path. Am I permitted to use any bank for my financial transactions? It is appropriate to have in mind that all the transactions are done in Indian currency, and via Indian banks? Hence it is essential to have an NRE/NRO account in a reliable and authorized Indian bank. Using this account, post-dated checks and electronic transactions can be done from your accounts. To make financial transactions from abroad in India, one needs an NRE account, and there are various benefits such as tax-free and the ease with repatriation associated with this account. Before making any transaction, ensure that you have ascertained the property to be purchased and the funds are also in place.
6. Power Of Attorney
What are the benefits of having the Power of Attorney? Living in a foreign country but also having the desire to acquire a property in India has various disadvantages if the physical issues are not resolved correctly. To help cob these disadvantages, an investor needs the power of Attorney which would act in favor of the investor. In the absence of the investor, the power of Attorney is valid to work in his place and fix all necessary actions. In case if the building is still under construction, the power of Attorney may be in the name of a close family member or a trusted friend or even associate. A valid Power of Attorney helps protect the buyer from fraud, forgery and to secure his investment.
7. Legal Backing & Clearance
A considerable sum of money is involved when investing in real estate, and for this reason, it is necessary to have legal paperwork. But what legal papers do I need? This paperwork would not be limited to the no-dues certificate which is issued by the seller, verification of deeds of ownership, and clearing any bills. It is also vital to carry out a thorough background check to ensure that every clearance that is legally required are met which may include environmental tests and approval.
8. Tax benefits
An NRI, are there certain tax benefits associated with my purchased properties? An NRI can also enjoy the same tax benefits that are also enjoyed by an Indian citizen on the purchase of properties. An NRI can also claim a reduction of Rs. 1 Lakh under section 80 C on the Income Tax Act, 1961. If such a feature is sold after three years of purchase, the property is viewed as a short-term capital gain and the gains acquired can be taxed. And if the property is sold after three years, the tax can be reduced by investing in another real estate property. If the property bought is used for rental purposes, the NRI will have to pay only local taxes.
9. Types of properties where NRI or POI can invest:
Are there specific properties I cannot purchase as an NRI? Although using RBI, permission has been given to NRIs to acquire landed properties in Amaravati. The NRIs are allowed to buy only residential and commercial properties. This means that NRIs have no restriction as to the number of property to be purchased be it residential or commercial. Crda plots are the best for this kind of purchases.
10. Joint ownership of a property.
Am I allowed to merge with someone to buy a property? And if yes, are there some restrictions? Properties purchased by NRI can be bought in a single name or merging with another NRI. Notable, a person residing in Amaravati or a person that is not legalized to invest in property in Amaravati cannot be a joint owner of a property and such a person cannot contribute financially to purchase such properties.