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Tips for NRI investing in Indian Realty Market

NRI InvestingIndia is the most sought after destination for the Non-Resident Indians. The developing economy is steadily treading the path of development. Various sectors like automobile, education, agriculture, IT and real estate are massively contributing to the growth and expansion of the nation, directly aiding the economy to compete globally.

The aim of the developing economy is to bring foreign exchange to ensure better monetary value of India rupee. Therefore the government of the nation has kept no caps on the quantity of real estate investment for NRI’s.

The country opens wide gateways for foreign players of Indian origin but before one plans to invest in the property it is essential to develop a thorough understanding of the realty market herein.

Top Points to consider before investing in Indian Real Estate

Investment in real estate does not always assure better returns. People around the world have this misconception deeply rooted that real estate investment brings manifold returns at the time of resale, but this notion needs to be re-framed.

At prima facie investment in property is not always a profitable venture. Many a times there is risk involved in the property which usually goes unnoticed by the buyer at the time of property purchase? But it does not imply that there is no way out. There are effective tips which ensure better returns in future. To know more go lowdown here:-

Real Estate Investment Planning

: – Those who are planning to buy a property it is essential to plan your purchase beforehand. The most common mistake done by the investors is they don’t strategize their investments.

Investment in property is a decision which investors would go for once in a life time therefore thorough contemplation in the process is required. Ideally it is important to consider property investment decision so that nothing is there to regret in future.

Monetary Decisions Does Matter

: -It’s not like one fine day you get up and ask your spouse to accompany you for property visit. Buying a property should not be impulsive decision. It involves lot of investment therefore it is essential to ensure that nothing goes wrong. Often people make mistake of going overboard about the cost of the property to be purchased, considering that the shortfalls in the amount can be somewhere arranged in future.

Drop this notion and get all your expenses in line first. Talk to your financial advisor and also get the details from your bank. Arrange for the amount if you are planning to get in cash. Work through necessary financial documents to ensure what amount has to be paid and when. Once you know your budget, don’t exceed it.

Market Research: –

It becomes indispensable to conduct a market research. People most commonly try to isolate their deal from the market environment and that’s the biggest blunder done. If you are planning to purchase a property make sure it is sync with the market drivers. Consider and reconsider the location selected, price value, future appreciation and the percentage growth. Besides this, a look in the property history is also important as it will help you draw exact statistics whether you should plan your investments or not.

Flexibility Involved: –

One surely can’t make specific rules and norms related to real estate property. But some where one has an idea as in what is to be done with the property. If you are not then made sure that you definitely do draw a clear cut idea. This will help you decide number of rooms required, whether they should be too big or normal size, parking space, kitchen space and other important things.

At the time of purchase do probe in the internal spaces. In any case if you are planning to resell the property but don’t find adequate investors then you can plan to keep the property for your personal use.

Capital Gains: –

Do you have any idea about taxes? Do you know how capital gains are calculated under tax laws in India? What are the circumstances when you are not required to pay capital gains tax? If not get all the necessary details from your financial advisor and follow them correctly.

Also do plan for the tax to be paid on the earnings of the investment. Sit down with your financial advisor in any such issues and get accurate information on financial details. Any problems in future can’t be fixed; therefore it’s wiser to make all necessary checks before hand.

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