In the past few years Indian economy has seen a phase of increase in the land and property prices going to almost double in a span. This clearly implies that this sector is given a good amount of returns to the domestic investors and therefore, it is an inspiration to the overseas investors. However, the spur in prices has not impacted the overseas investments significantly because the currency cost per dollar declined during the period. For overseas investors the increase in property prices is of a marginal value, which means it is still a good option / timeframe to invest in Indian real estate for good returns. As per the latest statistics shared by OFIC (Overseas Indian Facilitation Centre) every second investment query received in the support centre is on the investment in residential property in our country.
For investment purposes or looking for an establishment in any city in India, you have to be very careful in selecting the seller or agent for the property. It will often come into your mind as to whether the seller / agent is reliable or not as the sum paid is your hard earned money. And you will never be interested in spending this amount at a place which can lead to losses. Therefore, before going ahead for such investment, it is imperative that you investigate and validate all necessary information around it. Following is a guide which can be referred prior to arriving at a decision.
The best way to conduct this research is hiring a property dealer or a real estate agency which can perform such a research on your behalf.
There are various charges that accompany the investment cost these days. Some are direct and much is hidden.
Being an investor, if you buy a property in India by acquiring a home loan, you are eligible for a tax benefit under section 24. The person can get avail a deduction (tax exemption) up to Rs. 1.5 lakhs on the interest paid in one fiscal year. The only clause in this section is that the person needs to purchase or construct (to be self-occupied) the property within 3 years from the end of the financial year in which the loan is taken.There are further benefits to an NRI under Section 80C. The person can also claim a deduction up to Rs. 1 lakh under chapter (2) (xviii) on the repayment of principal amount during one fiscal year. This amount can include the stamp duty, registration fee and other charges required in acquiring the property to be claimed under this section.
It’s very important to get the validation of all legal documentation done prior to handling such a deal.
When it comes to NRI investment in residential or commercial property, it becomes essential to get a due diligence or some pre purchase checks completed and verified. You just don't directly purchase the property on the referral of friends and relatives and should hire a Property or legal advisor for an in-depth analysis. There are a few questions that should be kept in mind like - whether the deal you are going to the selling party is reliable or not.
This should be your last milestone in buying a property. Once all the formalities are done, make sure before making the payment you ask for the report from the property inspector. This will be an additional security (with Government assurance) for the property.
The tips that are provided above are for your guidance. In case you do not wish to take any hassles on your own can surely go to an expert real estate agent. However, even after that you will be required to get into some sort of research on your own as well and in this case the above pointers will be of a considerable help in decision making.