Real-estate investments are an essential part of modern living. It helps secure a person’s future. But where to invest for maximum returns is a question that crosses everyone’s mind. Especially if you are an NRI, you should know the best investment for future-proofing. With the government implementing Benami Property Act and RERA, NRIs can now invest in real estate with utmost confidence. Investing in real estate gives high capital gains tax for NRIs on initially low capital. So, before putting your money into real estate in India, know its rules and regulations to avoid any future problems or legal hassles.
Properties to invest in
The best investment options for NRI in India is real estate investment as it offers high capital returns. However, knowing the type of properties they can invest in, is important. In India, NRIs can invest in any residential or commercial property. They can acquire multiple properties, but the taxes are calculated depending on the property usage. However, NRIs need to be alert, they cannot purchase any agricultural land in India. Having said that, if they inherit any agricultural property or it is given to them as a gift, they can keep it as an asset.
Reasons to invest in real estate at an early stage
To get financially secure
Real estate investment in India for NRI is considered secure as compared to the stock market. While you’re considering the stock market, you might come across a win-win situation and might lose the next moment. However, when it comes to real estate, the security is long-term, considering you have a great asset. NRIs mostly invest in real estate to increase their retirement income so that they don’t have to worry about the future and remain financially independent.
To earn regular cash flow
If you purchase a property (residential or commercial) and lease it out to people, you may receive regular cash flow. This will eventually boost the profits because you don’t have to depend on the value of the real estate but also on the monthly rental revenue. Find reliable renters to maintain the property and if not, consider keeping someone as your Power of Attorney (POA).
Get tax benefits
Real estate investment returns in India are similar for the NRIs and citizens of the county. Though it is an investment, when you buy a property and rent it out, it’s business. Hence, NRIs become eligible to get various tax benefits.
They can write off the following expenses when they run the real estate business:
- The mortgage interest is paid on the loan.
- Maintenance costs
- The loan’s origination points
- Depreciation (over a period of 27.5 years)
- HOA fees, homeowner’s insurance and property taxes.
Investing in real estate has several tax advantages. But, you must consult your tax advisor before deducting your expenditures to avoid associated problems.
To profit from your investment
NRIs can put down a portion of their house cost by investing in real estate. Let’s assume you got a property for Rs. 1,00,000 and put down 10,000; assuming you have decent credit and a steady salary, you should be able to get a loan to finance the remainder. This means you must invest only 10% of the asset’s worth to be its owner. As you pay down the mortgage over the years, you can keep more of the investment. This will thereby help you increase your tax returns by paying down the loan and increasing the appreciation of the property.
Takeaway
NRIs can benefit from real estate investment in India, but they must know the basics of investing in properties beforehand. One of the most appealing choices for NRIs wishing to invest in real estate in India is Rohan City, a unique initiative by Rohan Corporation. We are considered among the best builders in Mangalore and India, with over 2000 happy customers. We curate fascinating luxury properties for mostly residential purposes, which can also be leased out for commercial usage. Our properties are appreciated by customers, which will automatically help them earn profit from the investment. So, if you are thinking of investing smartly, choose properties offered by Rohan Corporation.
