Can you ever take a sound nap forgetting your Indian property while being on-ground in the US? It’s really hard to do so. You’ve acquired not only the value of your hard-earned but the emotional currency as well. You can’t look on the bright side only. The flip side also exists that spotlights the challenges.
- Missing link between foreign country and India for NRIs:
Let’s say, you’re in a fix to manage your property in Chennai while living in the USA. You’ll be broke since you’d need to make ISD calls frequently. Taking a sigh of relief would be a blue moon. You’ve to resign your sleep and also, the rest.
What if your account is locked for the want of documentation?
Would you able to make transaction if your credit card is no more active?
Isn’t it a situation between the devil and the deep sea?
Solution: You can deal with all such problems with the help of the best and reliable NRI property management services in Chennai (or, wherever your asset is). Search out the one by the B2C model that can:
- Provide the preventive maintenance. It would help in increasing the value of your asset. Quarterly maintenance of the property keeps it value intact. Thereby, the owner gets a rewarding profit on its sale.
- Ensure higher quality of tenants. The indecent tenants can slap an enormous amount over the owner for undoing wears and tears. And, if they would be delinquent, the rental money may touch and go.
- Follow stringent process of the rent collection. Monthly rental income is a plus for NRIs unless it is credited punctually as per a rental agreement. Otherwise, pulling out accumulated money is a hard nut to crack.
- Quarterly visits. Regular inspection scans any damage before it goes irreversible. Therefore, the possibility of any delinquencies of the tenants in the premises can be eliminated.
- Blind to market rules:
A happy event of buying a property with the perspective of rental income can result in nail-biting experience. Someone is always needed to take care of it. Otherwise, land mafia and encroachers tend to glue their bird view over the unnoticed piece of land. However, the NRIs are disallowed to invest in a plantation or agricultural land or a farm house. On the flip side, they can invest in any residential property. In it, they must have enough knowledge of the Indian real-estate market. They must look into these market solutions prior:
- Regulatory Act: This Act states the very fact that is mentioned above. Any non-resident can invest in the Indian property, except the agricultural land, plantation property or a farm house. This is subtly mentioned under FEMA (Foreign Exchange Management Act).
- Types of property to invest: The Reserve Bank of India (RBI) has showered its mercy by allowing the sale and purchase of the property to the NRIs or PIOs. They can do such trading under the strict provision of no trading of any field, plantation area or the farmhouse. But if any of these comes to the foreign native (who has Indian passport) in inheritance or as a gift, he/she can trade it off.
- Financial transactions and funding: The purchase of the property for the NRIs and PIOs requires the deal in Indian currency. For this purpose, the individual must have an NRO/NRE account in any authorized Indian bank. Even, post-dated cheque can also be issued for the payment.
Given that they should have at least 20% of the value of the property of their own, they can borrow for a maximum 80% funding. This trading can beat their brain out if any of the documentation work is pending or deferred or undone. It can be any due bill, due certificates from the seller and inherited/gifted property idea. So, going to such trade after verifying all papers with a certified lawyer would be a wise idea.
- POA: Investment in an under-construction property requires empowering the power of attorney (POA) to the best property management company/ constructor/ builder/ dealer. Rather than showing bling faith to the dealer, verify it with a certified lawyer.
- Tax Benefits: The Indian government avails a number of tax benefits to the investing NRIs. Thereby, the investor can figure out funds’ retrieval. Under Section 80 C of the Income Tax, 1961, it is stated that the NRIs can claim for tax deduction worth 1 lakh.
Selling it within a short interval of 3 years of the purchase is considered as a short term capital gain. It’s taxable. But if it is sold after 3 years, it would be termed as a long term capital gain. The investor, then, becomes eligible to enjoy tax leverages.