With the rupee value going down, India has turned out to be a conspicuous investment location for the non-resident Indians. Majority of the Indians staying outside the country are buying real estate properties in India in the lure of a huge return on investment. The government of our country is also launching alluring schemes to provoke the interest of the NRI’s for real estate properties. This article enlists 5 things that a non-resident Indian should take into account while purchasing a home in India.

Whether you want to buy one of the luxury apartments in Lucknow or nearby areas, consider the following factors before the investment:

1. Check If You Really Belong to the NRI Category:

It is very important for an NRI to affirm that he belongs to the NRI category as classified by the Income Tax Act. This act categorizes the residential status of an individual into 2 categories. They are:

• Resident
• Non-Resident

Further, it categorizes Resident into 2 categories including:

• Ordinarily Resident (ROR)
• Not Ordinarily Resident (RNOR)

According to the Foreign Exchange Management Act (FEMA), an Indian will be treated as an NRI is he or she stays in India for a phase of less than 182 days in the preceding year or lived overseas for more than 182 days for employment, education, business or similar purposes.

Even if a person is a foreign citizen, he can be considered as an NRI is he is of Indian origin or if any of the members of his family like parents, grandparents were Indian citizens. Note that the residents of Pakistan and Bangladesh are not considered as NRIs.
 

2. Evaluate the Market Condition:

It would be wise to evaluate the real estate market condition and the property rates before investing in a real estate property in India. Do not forget to check out the exchange rates and the tax related to your investment.

 Read this Article: How to save tax when buying or Selling a home.

The Indian real estate industry has seen a remarkable boon in the last couple of years and it is expected to flourish further in the years to come. Investing in a real estate property would no doubt bring you good returns on investment.

3. Choose The Location Carefully:

 After evaluation the market condition, it is important to choose the location where you want to buy a home. A thorough online research would help you find the best location for home purchase. It is always good to find a property in proximity to your relative’s place as it will help getting the sale deed registered effortlessly. Moreover, your relatives will look after your property in your absence.

4. Look Out For Home Loans:

 The non-resident Indians have the privilege to apply for home loan for any sort of property, be it an under-construction unit or a ready-to-move home. Education background has a significant role to play when it comes to availing home loans. You need to a graduate to apply for such a loan. While looking for a bank to apply for home loan, do not forget to take into account the maximum mount range. Documents required to be submitted with loan application vary from bank to bank. Select a bank that offers least interest rate.

• Select the Right Bank Account For Loan Repayment:

Choosing the right type of account is important when it comes to repaying the loans. There are 3 accounts for the NRI. They include:

• NRO: This account enables an NRI to transfer Indian income and deposit it to foreign funds. The interest earned on the principal amount is subject to tax deduction.
• NRE: The foreign funds get converted into Indian currency in this account.
• FCNR: This is not a saving account but a fixed deposit account in foreign money.

 Consideration of the above factors would help an NRI buy the best home in India effortlessly.