According to the IMF (International Monetary Fund), India is 12th largest economy in the world and it is expected to be at 4th position by 2012. Although, the high inflammation rate still remains a concern in India but the economy is growing exponentially from past few years and will continue to do so.
India is also the 3rd largest economy in terms of PPP i.e. Purchase power parity, according to the World Bank. The 2011 survey put India at 3rd after US and China compared to 10th position in 2005. So, it’s visible from the stats as well that Indian economy is on the rise and high.
And this is where investment opportunities help individuals reap in the rewards from their hard earned money. NRIs invested over 2 billion dollars in the year 2013 itself. With deteriorating job opportunities in the urban cities and high inflation, home sales went down. For Raheja Developers in Gurgaon, 50 percent of the sales were from NRIs for residential as well as commercial property.
Now, find below top 5 Property Investment Tips for NRIs who are looking to invest in property in India.
Buy Commercial property: Sale of commercial property has gone up. Private bankers and wealth management service confirms that now many NRIs investing in commercial properties. Reason being: benefit of long lease of commercial tenants brings in monthly rent consistently.
There are different types of commercial properties; most popular are offices and retail.
- If you want to buy retail, look for the property on high-end street rather than a mall.
- When you buy a commercial property make sure you yield a return of 10-12%
- Bargain on the rent, you don’t only get profit from selling the property but also from return of rent.
Do your research on the builder: Don’t forget to do your thorough research about the Builder’s reputation. Don’t fall for the usual advertising available on the internet. Check for their current projects as well as upcoming projects.
Verify the documentation: Don’t forget to get the documentation verified for the property. Hire expert services for process. NRI services provide the best facilities for the NRIs from assistance in buying and selling, statuary payments to property monitoring. These service providers will do all the work for you, so that you don’t have to visit again and again.
Avail home loan: Home loan facilities are available for NRIs similar the way they are available to citizens of India. To avail home loan a person
- must have a valid Indian passport
- must be 18 years old or above
- must be employed abroad for at least 2 years
- should have valid work permit and a regular job
Agreement Papers: When dealing with builders, get everything in writing. Read the offer documents and contract carefully and omit what you don’t like. Several builders will promise great facilities and pictures on the website and brochures before the project starts but many times don’t provide all those amenities that they mentioned initially. Sometimes they even raise the prices of the property after you buy as they may have some clause in the paperwork that you signed which allows them to do so. Check and recheck the sale agreement before buying.