The allure of acquiring premium flats in Mumbai or buy flats in Mumbai remains robust for NRI investors. In addition to providing a link to their cultural heritage, these residences serve as profitable investments that will increase in value over time for NRI investors, as Mumbai’s real estate market soars to previously unheard-of heights.
However, acquiring real estate in India while living outside may be a difficult and complicated procedure. The possibility of registering properties in Mumbai presents particular difficulties and factors for NRI investors. For a thorough guide on investing in real estate development projects in Mumbai for Non-Resident Indians (NRIs) who intend to make an investment in the Indian real estate market may read this blog.
Types of properties NRIs can purchase
NRIs are allowed to purchase residential and commercial real estate in India under the Foreign Exchange Management Act (FEMA). They are not permitted to buy farmhouses, plantation property, or agricultural land, nevertheless. NRIs can buy homes alone or in partnership with another NRI, and there are no limits on the total number of properties they can possess. Legal counsel is crucial since certain regulatory requirements could apply when co-owning with an Indian person.
Power of Attorney
If you cannot be present in India, you can appoint a trusted person as your Power of Attorney to complete the purchase on your behalf.
Documents needed
NRI investors must thoroughly check and validate the necessary papers to guarantee a seamless transaction and steer clear of any legal problems. When registering a property in India, the following documents are usually needed, albeit these are not the only ones:
- Title deed (with the seller’s name attached)
- Plan approved
- Certificate of Occupation (if the building is ready)
- Permit for Construction
- Updated encumbrance certificate
- Certificate of share ownership (if the housing society is okay with it)
- RERA registration (if appropriate)
- The society’s NOC
- Identity papers (Form 60, PAN, and passport)
Choosing the right financial options
The most important stage in buying a house is financial planning. You should have a flawless financial plan that will enable you to keep tabs on all of your expenses and improve your savings for your Indian real estate investment. You may get a general estimate of how much you can spend on real estate without going over your emergency fund by mapping out your finances.
Legalities for NRI investors
Legalities are crucial for ensuring a safe and compliant investment. It is recommended to ensure that the project is registered with the Real Estate Regulatory Authority (RERA), especially MahaRERA for Mumbai, Maharashtra. Buyers should ensure that the property has a sound title, that all relevant approvals are in place, and that the developer has secured commencement and occupation certificates. If the buyer is unable to be physically present in India, they should designate a trusted agent via Power of Attorney (PoA) to manage the purchase and registration procedure. We at MK Shelters have a proven track record of building the best under RERA guidelines and always delivering our projects way before the time allotted to us, discover our projects here.
Taxes and benefits for NRIs
Like other Indian citizens, non-resident Indians (NRIs) are subject to the same tax laws while investing in real estate in India and are eligible to claim tax advantages under section 80 C of the Income Tax Act, 1961. If the property purchased by an NRI is reported for personal use, it is not subject to taxes; nevertheless, if it is rented, it will be considered a taxable asset. In a similar vein, an NRI may only claim one property as their own if they invest in more than two.
The demands of our Non-Resident Indian (NRI) clients are our main priority at MK Shelters, the leading real estate developer in Mumbai, and we have a committed staff that is committed to providing you with outstanding service and support. Our service is designed especially for NRIs, guaranteeing a smooth experience all the way through their real estate journey. For our esteemed NRI clients, we want to make property ownership in India a simple and fulfilling experience, from committed customer service to knowledgeable help with house financing, renting, and more.
For NRI investors, purchasing real estate in Andheri is a wise investment, particularly in upscale developments like MK Gracia by MK Shelters. Flats in Andheri offer comfort and great appreciation potential due to its prime location, first-rate facilities, and simple legal processes. To guarantee a safe and easy transaction, always seek the advice of financial and legal professionals.
