While the whole world complains of the decreasing value of real estate, India has silently risen to the top when it comes to real estate investment. Some Non Resident Indians or NRIs might think that there is no point of buying property in a land which will never be their permanent residence; but did you know that if you buy property in your homeland today, the appreciation value is likely to go up in the next few years? A simple calculation of the property value and profits should be enough to convince you to invest in real estate in India.
How Will NRIs Benefit from Buying Property in India?
It is a universally acknowledged truth that a property bought can never go to waste, even if you do not sell it for sentimental reasons. For some, property is an investment so that they could sell it later when the value increases. For them, it is necessary to wait for at least 3 years before the value increases to the point where they would get maximum profit for long term capital gains. If an emotional attachment to your homeland is not enough to make you buy property in India, these reasons mentioned below should do the trick –
India’s Growing Real-estate Market- When you compare India’s real estate market to that of the rest of the world, you will find that India’s property value has increased by more than a whopping 85%. Can you imagine the immense growth in the field of real estate in India? Profits are guaranteed if you do decide to buy property here.
Lower Rates– Affordability is a major advantage while buying property in India. For NRIs, it is extremely convenient because they can buy the property at relatively cheap rates and watch the appreciation value double in a matter of years.
Getting Loans is easier– Non Resident Indian may be buying the land for constructing his own house there or buying a flat or a house for himself. If he’s taking a loan to buy the property it would benefit him as interest would be deducted from his income in India for the loan. This is one advantage that NRIs get.
House Taxes and Profit– Any profit acquired from property is taxable under capital gains. If you have had the property for more than 3 years it is called long term capital gains. NRIs are exempt from taxes on profits obtained by selling residential property, only if they buy another property in India. The new house must be bought within a year or two of selling previous property.
Attractive Deals– Real estate developers have realized that NRIs are interested in buying property in India purely for investment purposes. They come up with deals which will attract more buyers. If an NRI comes across a deal which allows them to buy two properties in India, as investment, which is more profitable than buying one, they’re likely to do so.