Whether buying property in India safe for NRIs?
The Indian economy market and the real
estate is now becoming a popular investment method for NRIs. Now a days,
various schemes and avenues are offered which open up the gates for safe
investment. Stability in market has led to immense increase in interest with
regard to it. A good deal and base in motherland attracts NRIs and PIOs to make
investment in residential and commercial property in
The Reserve Bank of India (RBI) and FEMA
(Foreign Exchange Management Act) now inculcates the sense of security in
property investment. FEMA now gives prescribes for more liberalized rules and
regulations in addition to repatriation of capital so invested and rental proceeds
as given under RBI. It also ensures
10-12% returns.
The flexible rules now give an excellent opportunity for NRI investment as
opposed to earlier times where they had to suffer issues regarding income and
wealth tax, Hindu joint family act and Municipal rules.
Unlike Indian residents, NRI enjoys the
same status as property owner, despite of different rates of property tax. Finances
can also be raised from financial institutions to purchase an apartment and property
tax is to be paid to the concerned authorities. Home loan can be repaid by
inward remittance through normal banking or by direct debit for those who earn
income through rent, pension etc. in
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