The fifth episode of ‘On The REcord – Decoding Realty’ titled ‘Country Roads, Take me Home, An NRI Exclusive’ was aired on 17th November 2021. An expert panel shared insights on factors that NRIs should focus on when buying realty in India for living and investment purposes
For an NRI, realty investment in India provides the individual with a hard asset that will continue to see price appreciation due to the current demand-supply gap in the market.
It further acts as a safety net in the home country.
The NRI market typically contributes to a significant portion of the housing sales. Thus, they are a valuable segment for developers.
The first step is to look for a reputable builder and open a bank account in India. Having an NRI account is mandatory.
Choosing a bank is a critical decision in the process as the bank processes the home loan and helps in selecting a trusted property.
The eligibility criteria for an NRI on getting a home loan varies from country to country. However, on average, the lender looks at a minimum income of $ 42,000 annually.
One thing to keep in mind is that home loans come with floating interest rates. Thus, transparency on the rate of interest and other charges should be carefully noted.
They can be paid off over 15-20 years with an average maturity time of 8-9 years.
Now the differences in terms of choosing a property for living compared to investment.
One should know which city they want to live in and look for a reputable developer depending on their requirements.
For investment, one should know the risks involved by investing in a long-term asset like real estate and the Forex exchange rates.
The best route for investors is to go for projects in growth corridors of metropolitan and tier-one cities.
Investing through an NRE account is more profitable compared to doing the same with an NRO account.
Lastly, today an NRI does not need to be physically present in Indian to make the purchase. Everything can be done digitally. However, a Power of Attorney is required during the time of disbursement.
Conclusion: Choosing the right bank and developer is the most important step to protect your capital. With controlled inflation, present repo rates, and the economy opening up, there hasn’t been a better time to invest in Indian Realty
