Housewise.in is a dedicated property Management Company in Pune that provides the opportunity to live in the city of the future. The main question is why you require a property management company and the simple answer is expertise, experience, complete guidance through the purchasing and renting process, and access to essential information. The main hidden path to any successful property Management Company is knowledge of the property, area, government, and every other aspect of life surrounding us. Housewise understands that as NRIs you grew up in the city you live, and perhaps hope to return to someday or want to cherish your property lifetime. We are present here to do just that. We offer complete NRI property management, which includes rental management, tenant management, or even simply vacant monitoring. We are privileged to say that as a result of our consistent hard work and dedication, the Housewise has continued to expand its horizons day by day in an anonymous way. Read more about the Checklist for NRIs to Invest in Indian Property
- What are the different types of properties to invest in?
- What are the various sources of funds to invest in Indian real estate?
- What are taxation policies for payment?
- Impact of weaker money on NRIs investment in India
- Importance of Non-Encumbrance Certificate online for NRI
- Documents required for property registration
- Market research for verified or not verified builder projects
What are the different types of properties to invest in?
The first point in our Checklist for NRIs to invest in Indian Real Estate is to know different types of properties to invest in
Commercial Real Estate
For those who desire to make income through commercial properties in India, there are more than a few types of commercial real estate spaces that can be an excellent source of income. Office spaces, sales areas, retail outlets as well as storehouses are just a few examples of Commercial Real Estate properties. An essential thing to keep in mind for first time NRI real estate investors is that the use of commercial property takes account of quite a lot of charges and taxes which are imposed, and these may show a discrepancy from locality to locality. Hence, it becomes essential to do your calculations right before investing in Commercial Real Estates in India.
Residential Real Estate
Residential real estate takes account of the areas developed for inhabitants to live on. It cannot be used for business purposes. This segment also consists of co-ops, townhouses, condominiums, duplexes, quad-lexes, triple-deckers, high-value homes, multi-generational as well as vacation homes.
Industrial Real Estate
Industrial real estate takes account of the property for industrialized purposes. It comprises of manufacturing buildings as well as stockrooms, and storehouses. It is an umbrella expression for manufacturing, production, engineering, research, industrialization, development, and storage as well as distribution services.
What are the various sources of funds to invest in Indian real estate?
Second point in our checklist for NRIs to invest in Indian Property is to know sources of funds.
The family bonds
The family bonds are the most excellent option to request your family members. For this, your parents are your best bet for finding you when you are purchasing a property. You might return them the funds later on without having to shell out any interest.
The family jewels
A lot of us are quite corny about the family jewels, and we would like to keep them in our cabinet everlastingly. Nevertheless, what is the purpose of this asset if it can’t be useful in times of need? Ask over your partner if she is ready to sell her jewels and ornaments for the time being. The cash you would set aside by not paying interest on a house loan would be significant enough to return her the favor, with a reasonable amount of interest.
You may have a share for you in that big house where your brother now lives. On the other hand, you, at the moment, live in a different city, and your probability of going back to the old residence is zero. You would wish to purchase a house in the town where you are working at this moment. Rather than applying for a house loan, trade your share of the family property to your brother. This would end the question of you going to a bank to fund your NRI real estate purchase.
What are taxation policies for payment?
The buyer of the NRI real estate needs to pay the following taxes:
- TDS or tax deduction at source on an amount higher than Rs 50 Lakhs for the acquisition of property exclusive of agricultural land
- Stamp duty
- Service Tax – relevant if the real estate is being acquired from the builder who considered and constructed the project before offering ownership to the real estate NRI. If a `ready to move in’ property is procured from the broker, service tax is not relevant.
- Value Added Tax (VAT) – If valid in the concerned state.
Impact of weaker money on NRIs investment in India
With the Indian currency under pressure and going weaker for the past few months and Indian rupee declining to its lowest-ever levels, real estate players can look forward to non-resident Indian or NRI NRI property investment in the real estate sector to gain impetus. A weaker Indian rupee against the US dollar makes NRI property investment in India cheaper for overseas investors.
Importance of Non-Encumbrance Certificate online for NRI
An Encumbrance Certificate is needed to recognize the past property transactions while purchasing a property. Moreover, it states that the property is free from all the legal responsibilities. Through an Encumbrance Certificate, a real estate NRI investor can make sure that the property has a free title and is free from all the duties. Apart from understanding the past property transactions, the majority of banks insist for an Encumbrance Certificate for the past 13 years before giving away a home loan or loan against the property to the real estate NRI investor. An Encumbrance Certificate can be obtained from the sub registrar’s bureau where the exacting property deed has been recorded and registered.
Documents required for property registration
Important point in the checklist for NRIs to invest is the complete list of documents that are necessary for property registration:
- Sale Deed
- Mutation Register Extract
- General Power of Attorney
- Copy of Building Plan
- No-Objection Certificates (NOC)
- Allotment Letter
- Sale Agreement
- Possession Letter
- Payment Receipts
- Property Tax Receipts
- Encumbrance Certificate
- Completion Certificate
- Occupancy Certificate
Market research for verified or not verified builder projects
The following four things are imperative for you while looking for a verified and trustworthy builder:
- Delivery of what was undertaken
- Quality of work
- Does not claim additional money
- Timely Delivery