Benefits to NRIs for investing in Indian realty Market
Are you confused on how investing in Indian realty market can actually be fruitful for your portfolio? Irrespective of the slow rise in the prices in the property market in comparison to other developed economies, the climate of investment in India is pretty positive because of right policy initiatives as well as favorable political situation. This certainly has enhanced the confidence of the international investors in the Indian real estate market. Apart from this, it improved the outlook of the economy on global platforms is bringing the investors into the field who were far sitting on fence. This blend makes India a hot destination for investments.
Here is how it is beneficial for the Non-resident Indians should consider investing in India
Property rates are at lowest
Non-resident Indian investors should make most of the slow realty market. The rise in price historically in India has been higher than the matured markets of West. This is the reason why India can actually offer value for money to investors with better returns in lesser time in comparison to other noticeable realty markets of the world. For those who are looking for the investment in affordable housing which might find it pretty appealing to know as per the Maharashtra Chamber of Housing Industry, there was the surge of 300% in the complete supply of the affordable units in Mumbai in comparison to previous year. Around 10,000 units have actually been launched. Generally, there is a rise in 27% in the completed project launches in 8 cities of India.
Non-resident Indians invest in real estate in India and can manage to save the tax such as a regular Indian resident. Tax deduction on the home loans on principal repayment as well as interest component can actually be claimed by non-resident Indians. Apart from this, for any property which is sold after 2 years from purchase date, profit earned on capital gains is exempted from income tax.
Non-resident Indians can invest as well as earn the rental income in India without troubles. Though 30% Tax Deducted at Source has to be deducted by the tenant, remaining amount can actually be repatriated under the Foreign Exchange Management Act rules. This basically proceeds the earning through the immovable property sale in India which can be repatriated under the act.
Though reverse mortgage is a popular concept in the US, India is yet gearing up for this specific kind of system. Non-resident Indians tend to plan the retirement that can invest in India and take advantage of the reverse mortgage. The amount that is taken from banks as the consequence of this specific type of mortgage is not factored in the taxable income of non-resident Indians. In this way, aging Non-resident Indians can enjoy advantage mortgage on the property.