Non-resident Indians (NRIs) have traditionally been an important element of the Indian real estate investment community. However, certain prerequisites must always be met for an NRI to invest in Indian real estate. According to the Foreign Exchange Management Act (FEMA), an NRI or a Person of Indian Origin (PIO) can buy property in India as long as it is not agricultural land or a farmhouse.
NRIs are also drawn to Indian commercial real estate, a different type of investment that provides massive returns. The depreciation of the rupee and the present market conditions have allowed non-residents to purchase properties in India at a lower cost.
If you are an NRI seeking investment opportunities in Indian real estate and need some helpful pointers on NRI property management services, here is a checklist of items to consider:
Consider the restrictions on the number of properties for NRIs
There are no limits on the number of properties an NRI can acquire in India. Commercial and residential properties are included in this category. If rented out, the rental income comes with some tax, regardless of residential status. No tax is payable if the property is acquired for personal use.
Know the rules about power of attorney for NRIs
NRIs do have an option to give POA to others to complete the property buying process in India. However, the same must be signed in the presence of two witnesses who should physically be present for signatures in the Indian Embassy. A local notary official should mandatorily attest to the signatures if they are not. After that, the document should be certified by the Indian Embassy, and the registration should be completed within three months from the date of execution. The registered POA can further be used for several purposes such as mortgage, leasing or renting out, managing disputes, and entering into contracts on behalf of the NRI. If you hire NRI property management services, transferring the POA process will be smoothly done by them.
Check if NRIs avail loans for property in India
Home loan is a significant factor affecting property investment decisions. Like all the other normal residents, NRIs, too, are eligible for availing of a home loan in India. However, it needs to be repaid in Indian currency only. This can be done in either of the following ways:
Though FEMA (Foreign Exchange Management Act) requirements govern NRI investments, the RBI has eased the restrictions for non-residents with an Indian passport. Furthermore, an NRI's spouse is entitled to jointly buy one immovable property in India and the ones listed above in this blog. However, this must be done in compliance with FEMA Regulations. Professional NRI property management services can educate you and help you out on this front.
Real estate in India has grown more efficient and transparent in light of the current market conditions with the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA) and the Goods and Services Tax (GST). Whether a resident or a non-resident, the sector currently provides an environment suitable for property investment.
Why should you consider hiring NRI property management services
NRI property management services are aware of the important rules And regulations For NRIs
Being abroad and balancing everyday life there and back home in India may be challenging. Because the real estate sector is so heavily impacted by local government, it can be difficult for an NRI to keep up with crucial laws and regulations that must be followed. By hiring property management services, you can be confident that you will receive all of the essential updates to help you maintain your property.
Who to hire- Real estate broker or NRI property management services?
When we travel abroad, we may try to delegate property management through close family members; that relative may engage a local real estate broker to do the task. However, neither a close relative nor a real estate broker will have a full-time crew dedicated to manage and look after your investment property. If you have purchased the property as a secure investment – like with any investment – it must be maintained to provide you with the desired long-term profits.
A property that is not well-maintained, for example, in terms of upkeep, tenant management, and vacancy/occupancy, may not yield the desired results. Therefore, NRI property management services should be hired to manage all aspects of your property from start to finish to maximize your return on investment.
NRI property management services have standard operating procedures
What is the significance of standard operating procedures? They are objective, goal-oriented, and specified to get the greatest results. PropertyAngel has standard operating procedures that cover all bases. From property analysis to tenant management, we have you covered. This also makes it simple for you to be informed about the state of your property; you receive timely updates from us, and you are constantly kept up to speed on what's going on with your property in India.
NRI property management services can help you deal with unexpected circumstances
As we all know, the pandemic has thrown the globe into unforeseen and unprecedented conditions. As a result, many householders have not been able to return to India throughout the year when the country was initially affected hard (March 2021). In addition, due to pay cuts and layoffs, several tenants demanded rent reductions, modifications in agreements, and the right to vacate the property without having to serve a notice.
It may not be easy to rely on close family or real estate brokers. Professional NRI property management services are more diligent and prepared to respond to events. At PropertyAngel, we provide the most competent NRI property management services in Bangalore. Our qualified staff operate efficiently, keeping you up to date about your property in India.