The Indian rupee has depreciated 14% in value against the US dollars this calendar year. If you are a Non-Resident Indian (NRI) investor then this could be the best time to own a property back in your homeland. The depreciating rupee value against currencies like the dollar, UAE dirham, pound, encourages a large of NRIs to invest in Kerala’s real estate market. Along with the dwindling rupee, the ready to implement RERA (Real Estate Regulation Act) bring in transparency and accountability makes the real estate the investment options for NRI invest. For a US-based NRI who would have got Rs 64 lakh for $100000 just one year back, but today he will fetch Rs. 71 lakh for the same amount which is a big gain. For example, an NRI who pays an EMI of Rs 51,000 on a home loan, his monthly deduction would be $797 in November 2017 and now it will be $718 for the same amount. In effect, he is saving $79 dollars which is equal to an amount of Rs 5609.
Major factors that an NRI should consider before making an investment
• An NRI can buy residential and commercial property in Kerala, but not allowed to buy agricultural lands, farmhouses, and plantations. But he can inherit such properties.
• An NRI should be aware of the builder, its projects, location, financial stability, quality of construction and on-time delivery etc
• Know the property documents related to the property such as the title deed, prior title deeds, latest tax receipts, encumbrance certificate, approved plan, building permit number etc.
• An NRI can avail home loan from any financial institutions registered with the National Housing Bank (NBC). He should hold a bank account in any authorised Indian Bank and make all transactions in Indian currency only. The repayment of loan can be done with NRO/NRE account or FCNR (Foreign Currency Non-Resident) deposits.
• Before investing into real estate an NRI should know that he is qualified for tax benefits. The NRIs can claim tax benefit according to section 80 C of Income Tax Act, 1961. The charges for the processing fee, stamp duty, registration, and municipal tax are applicable for the tax deduction.
• An NRI should know the ROI potential of the property. An NRI can sell or rent his property without constraint.