Crucial Tips for NRIs Investing in Indian Real Estate

Non-Resident Indians (NRIs) hold the same property ownership rights in India as any Indian resident, under FEMA rules. Land can be owned as residential and commercial units, although not agricultural or forest land. However, NRIs often fall prey to quacks and fraudulent property dealings which are increasingly making them wary of investing in property in India. Buying property in India or anywhere else in the world requires a lot of due diligence by the investor, and this is especially true for NRIs. These are few questions that NRIs must ask themselves before putting their money in a property in India.

Why do you want to invest in India?
Are you looking at yielding returns from your property investment in India? In that case, it is advisable to invest in an already developed area and renting it out. The other option might be to buy equity shares of listed developers. Many NRIs also look at investing in property in India keeping in mind their future plans of settling down here. In this case, investing in a developing area would make sense.

Do you really “know” the builder?
This can’t be emphasized enough, as this is a highly fragmented market with a lot of fraudulent players in the market who promise the moon and the stars but end up delivering nothing. Do a thorough investigation of the builder/ developer you’ve chosen, go through his past records in terms of implementation, and compliance with laws. Speak to an existing or past customer of the said builder to get an honest feedback.

Where is the property located?
It is important to do a thorough check on the demographics of the property you’re looking at and ensure it is surrounded by good infrastructure. In India, where there is no guarantee of infrastructure development, where your property is located is of prime importance.

Have you done a thorough homework on the government policies?
Real estate policies in India are subject to constant change. Investing is forest or agricultural land is not an option for NRIs. One must do a thorough read-up on other policies related to property ownership and try to get an understanding of future government plans in order to take an informed decision.

Have you understood the taxation system?
For NRIs investing in property in India, it is imperative to hire a good tax attorney to understand the tax implications including TDS, rental tax, property tax, etc.

Bearing all this in mind, it is always advisable to hire a good property manager or broker to help you with all the paperwork in India, as you would be away most of the time. Plan your investment well, including a sound exit strategy to ensure a stress-free investment experience in India.

Making Coimbatore Smart

The smart city concept has been going rave in India with many developing cities coming under the radar for development as smart cities. Coimbatore is no less in this race! With great scope for development, the city has the making of being a major metro in progress! Sowparnika has residential flats in Coimbatore which are in line with state of the art design and have modern amenities. We will see this week as to how the city can be transformed into a great smart city easily.

People are at the starting point in any revolution or change and most of the people in Coimbatore being educated and willing to accept changes, starting off with door-to-door campaigns can surely help in the beginning.

According to many surveys which were conducted, the city has a vibrant growing economy, good social infrastructure, and active citizen forums which make it more viable and suitable for major changes with ease. Though there are setbacks in areas like sanitation, water infrastructure and traffic management, it can be set right be proper alignment and work.

With much open spaces and greenery available, there can be beautiful public spaces with proper allocation of finances and usage of resources.

Area based development is not a dream in a city like Coimbatore but with citizen cooperation and good planning, a vibrant economy can be established in the city.

Making the smart city project a sustainable one is highly essential. This can be done by segregating the component-wise plan to cover the operation and maintenance costs according to the need and not in excess.

Addressing traffic issues, proper channelization of available green spaces and open areas in the city and making use of the active citizen forums will surely make the city a smart one in no time!