Why Repatriating NRIs Are Rushing To Invest In Indian Realty
With so much unrest and mobility triggered by Covid, several Non-Resident Indian’s (NRI) are either being displaced from their locations abroad or are simply choosing to return to the familiarity and security of their home country in India.
Unemployment in the US has crossed 40 million and many that are impacted were NRIs. As a result, returning back to India has been their first priority. Many who have been living and working in the US, have savings that they would like to repatriate back to India. The first thing to take care of in these circumstances is the purchase of a home after they make the trip back.
While most NRIs bought real estate for investment purposes in the past, today it has become a necessity. Fortunately, the current infrastructure and governmental rules make investing in Indian realty easier, cheaper as well as transparent.
Returning Back To India?
THESE are the things you should do
Covid Lockdown: Ever since Coronavirus was declared a Pandemic and all international borders were closed, several people were stranded in different places away from their families. Many NRIs who had traveled to India before the lockdown were unable to return to their jobs and families settled abroad.
India started the Vande Bharat Mission flights operated by Air India that have been bringing back Indian nationals back to countries like the US, UK, Germany, and UAE.
Related Article: How To Board An Air India Flight To India
Executive Order: President Trump signed an Executive Order banning the entry of potential green card holders in to the US until 2021. With so much ambiguity about their future in the US, several green card holders choose to remain in India.
Instead of waiting for the ban to be lifted, many are purchasing residential properties in India itself for a more permanent stay.
H1-B Ban: On June 24,2020 a proclamation went into effect that prevents more than 3,75,000 H1-B visa holders holders from entering the United States until December 31, 2020. Since there is speculation that this ban could get extended beyond this date, the uncertainty has inspired many H1-B visa holders to take the safe route and head towards settling in India.
Are You Looking To Invest In India Realty?
Here’s your go-to guide
One of the primary elements of a move back to India is to ensure you have planned your financial situation well.
Related Article: 6 Tips For NRIs To Manage Their Finances From Abroad
Housing arrangements can be done from the US by ensuring you have an NRO/NRO account in India wherein foreign currency can be transferred, deposited and managed.
Having power of attorney in India will ensure you have someone reliable who can handle the sensitive transaction.
With the US dollar and UAE diram being stronger than the Indian Rupee in the past few months, many NRIs have chosen to remit large sums of money to their home countries. With the current Covid situation and uncertainty of their US visa status, protecting and sending their savings back home is the right thing to do.
Related Article: Everything you Need To Know About Transferring Money To India
Platforms like CompareRemit offer quick and convenient ways to choose best exchange rates to transfer money. Not only can you review a wide variety of different money transfer options but also opt for the best rates through various discounts only available on CompareRemit.
Advantage of Investing in Indian Realty
Real estate is one of the only industries that promises to resurrect after the world recovers from the pandemic of the real estate industry.
- Recovery: NRI investments in India is expected to hit a high of $13.1 billion in FY 2021. Investing in Indian realty for the NRI is not only a solution in the current climate but also a viable option.
- Varied choice: Given the market conditions, Indian realty has sufficient inventory, healthy competition, and improved affordability;
- Positive Returns: Real estate is not only an attractive asset class today but it also promises healthier relative returns;
- RERA: Real Estate Regulatory Authority (RERA) supports investments in Indian realty in a big way. Offering transparency, easy transactions and quick purchase options, NRIs benefit from such policies in place;
- GST: With no Goods and Services Tax (GST) payable on resold flats, there is bigger demand for ready-to-move-in houses. With NRIs moving back to India in hordes, this is an attractive option.
Related Article: How Has The NRI Benefitted From GST Bill?
- Tax benefits: An NRI can enjoy similar tax benefits like that of an Indian citizen on purchase of a property. He can claim a deduction of Rs.1 Lakh under section 80 C of the Income Tax Act, 1961.
- Tech Savvy: With many established real estate firms using tech-savvy operations to conduct their business, purchasing a home while sitting in the US is easy. By digitally enabling sales, buyers are able to browse homes, do virtual tours and make financial transactions quickly and finalize a home purchase at their finger-tips.