Rules that NRI investors should follow
This could be the appropriate time for non-resident Indians to invest in residential projects- an upcoming law would guard them against wrong-doings; new tax system will simplify things; the push by the government towards affordable homes will make deals much sweeter and on top of it, the Indian currency has been falling against the dollar. For the mentioned reasons above and many more, it is pretty hard to resist the charm of Indian real estate is oozing currently.
While you going for it, we suggest you ask these three questions and go ahead after having the satisfactory answer. This would make sure to investment remain risk-free.
Who is your developer?
It would become a lot safer to invest in the Indian realty after the Real Estate Regulation and Development Act, 2016, comes into the force. As law mandates all the developers to be registered with Real Estate Regulatory Authority to do the business in India, medium players and umpteen small would cease to exist. Real estate would become a field where serious players would be allowed to operate. It would, however, be safer to stick with trusted names; this doesn’t mean buying the properties only with bigger names which charge a premium from the buyers as of popular brand tags. Not bigger target should do fine if he has been the performer. Also, do look at track records of developers which could be location specific. For example, if you want to purchase an apartment in Bangalore, a local developer could be the better choice.
Who is your advocate?
The law does save from all sorts of crimes but as well know the prevention is better than the cure. This is the reason why it is imperative you trust near and dear ones with the responsibility of managing a property in India. There have been numerous reported cases in recent past where the landlords living abroad have been duped by the representatives in India. Be mindful of fact that the representative could actually misuse the power of attorney and dupe along other parties, too. This is the best to bestow upon the trusted ones the responsibility. In a vase, feel relatives cannot be trusted the jib, can hire people for same. Even if one has to pay these, there are such risks surrounding the property.
Who is the tenant?
The representative found you a decent tenant, who has agreed to pay you the handsome rent. You spoke to that person on the phone and find him nice. You think of meeting the tenant personally but of course, it is not possible for you to visit the home country any time soon. We still, however, suggest personal meeting with the tenant. The telephonic conversation is of course not enough as far as the business alliance that has legal implications are concerned. Also, there have been reports that the premises of leading actor were used to run some flesh trade in Mumbai. A thorough inspection should be done way before letting out the property.