If you are a Non-resident Indian (NRI), who is contemplating whether or not to buy property in India, do read on.
Why should you buy property in India?
There may be multiple reasons why you, as an NRI, would want to buy a property in India. Be it for investment purposes, for your family, or for a future plan to relocate back into the country. Buying an apartment in your native country can be intimidating. Yet, it can instil a sense of security within you and your family and relatives. Property in India could also mean having a roof over your head that you can call home whenever you come back to your roots.
Along with the sentimental value it holds, India has been projected as one of the fastest developing financial powerhouses. Cities like Mumbai and the suburbs have seen the most rapid growth of housing-related investments since it has a demand in the global real estate market.
Can NRIs buy property in India?
The answer is yes, you can buy property in India. The Reserve Bank of India (RBI), generally allows non-residents to own houses in India if they have a valid Indian passport or Aadhar card. But you must be aware of the legal provisions for ownership of immovable assets within the country. Legally, non-residents of India and people of Indian origin can buy apartments and commercial property in India but cannot buy agricultural plots without permission from RBI.
What are the tax implications and benefits for NRIs on purchasing a property in India?
- A non-resident of India is entitled to all tax benefits related to owning a property as any other Indian is. So, you can claim a deduction of some amount under the law. If vacant, the property can be considered as ‘self-occupied’ and hence you don’t have to pay any taxes on them. However, this rule applies only to one property owned. If you have more than one property, you can declare one as ‘self-occupied’ and the others will be deemed as taxable properties and will be added to your taxable income.
- If you rent out your property, the income obtained from it will be deemed taxable and you will have to file your returns here. You may need to show this income to your residential country and pay taxes there as well unless your residential country has a Double tax Avoidance Agreement (DTAA) with India.
- If you decide to sell your property, you will have to pay Capital Gains Tax which comes under the Income Tax Act.
- There are added advantages for buying a house on loan if you’re an NRI. You can claim more deduction for home loan interest compared to Indian citizens.
What are the key benefits of investing in real estate in a city like Mumbai?
Currently, there has been a vertical rise in Mumbai’s skyline and prices of the real estate market are slightly down. Builders and Developers in Mumbai are offering various lucrative schemes and discounts to buyers and a further reduction in stamp duty has pushed the demand in the market. The real estate builders and giants have zeroed down Mulund and few other suburbs of Mumbai, as the ideal locus for development.
- Mumbai is the financial capital of India, making it a commercial hub with a lot of employment and business opportunities. It has been an ever-growing city, and real estate is one of the big reasons for its growth.
- Return on Investment is the greatest in Mumbai. Especially in certain locations – one of them being Mulund.
- The location is just as important a factor as the area. Since Mumbai has a good commuting system, almost all residential areas and complexes are easily accessible. An ideal apartment would be in a residential area that is near to schools, civic amenities, private and public transportation systems, and commercial hubs.
- If your owned property is in prime localities, it will most likely fetch you good returns because these areas will always be in demand in the future too. And that would ensure that the value of your acquisition will hardly ever decrease, only with a few exceptions.
- Mumbai suburbs, like Mulund, houses great residential areas that have been constantly growing. You can contact us at Group Integrated for further guidance with that.
Why should one invest in Mulund?
There has been a rise in the multi-story towers and residential complexes which have now become the new standard of infrastructure development and housing aesthetics in Mumbai, especially Mulund. These residential complexes are specially designed for people who appreciate the grandeur and lavish ways of living. Mulund is a very posh area. And the realty market in Mulund offers luxurious apartments at affordable rates. Which makes it a good investment strategy.
Living in Mulund provides a holistic living experience for homeowners and buyers alike. It is equipped with facilities and amenities for residents.
Lastly, we would like to invite you to have a look at our projects at Group Integrated so that you can take a leap forward into investments in real estate. We have an ongoing project at Mulund, Mumbai called Integrated Kamal.
You can also contact us on +91-022-25018899 or [email protected]