India has always been a welcoming country for NRIs to invest money into real estate buying. Moreover, when an NRI thinks of buying a property in India, in most cases it is understood that it is meant to be a long-term property investment. Therefore, when investment is the target, buying a property must be supported by various logistics that are truthful. Many NRIs invest on Indian property, but on a long run they fail to get good returns out of that property. Why? There are many reasons of course. This article outlines some important tips for NRIs on property purchase in India.
Tip 1: Focus on the location of property
No matter how big or small a property you want to investment on, the location is of primary importance. Experts say that investing on a property inside a mall is not a healthy choice compared to investing on a shop in a street market. Although this is not a thumb rule statement, it is true to a large extent. While the business and future of a mall area is quite uncertain, consumer-oriented streets have a better scope for growth. Secondly, as an NRI you need to make sure that the property that you are targeting has a prolific surrounding scope, such as its job market, economy, and population growth in the future.
Tip 2: Choose the property type that matches your investment objective aptly
One of the interesting ideas for NRIs that many real estate business tycoons talk about is to choose the right property type depending on what future returns you can think of carrying with you. With property investment opportunities rising, it is observed that most NRIs want high returns, but then what is the investment-return ratio they are looking at is quite important. Once this value is available, NRIs can get to the market to see if a land, a bungalow, a commercial building or other kind of property can provide such kind of returns. Therefore, it is important for NRIs to not only think of how much to invest, but also to consider what type of property matches their target value of investment.
Tip 3: Target on properties with high returns
One of the important aspects for NRIs to consider is “high returns.” Most NRIs consider investing on properties in India is because they target very good returns from the properties. To ensure that the returns would be really great, it is important to thoroughly investigate what properties would meet such a requirement. Posh locations and prime properties in India could be unpredictable; however, if one notices the trends in the last decade and envisage the possible growth in the prime localities, it could be a great deal.
Tip 4: Verify the credentials and prospects
Another equally important tip for an NRI would be avoid any legal complexity by completely verifying the property and ensuring that the there is no dispute of any kind over the property. Any kind of legal dispute with a good property in India can devalue the property price by many times. Therefore, the prospects and credentials of the properties must be thoroughly verified by professional lawyers and counsels.
NRIs are usually inclined to buy properties in India where the returns are usually many times than the invested amount. In quite a few cases, NRIs fall prey to poor property or properties that usually do not gain a good market value. The above-outlined tips are some of the basics that NRI investors should keep in mind.