Important points which NRI must keep in mind while investing in Property in India

With the change of times, an average Indian household is opening up to the concept of Investment. Stock Market, bonds, mutual funds have started to feature in their investment portfolio, in addition to the age-old tried and tested insurance policies, Fixed Deposits, Recurring Deposits, government schemes and such. There is a new addition to the investment portfolio in recent times and that is of real-estate. With a surge in the Real-Estate industry in past decade, more and more people are opening up to the idea of buying property just for the investment purposes. And a big section of these investors is NRI diaspora. A lot of NRI, nowadays, are considering options to invest back home, with Real-Estate topping the chart. For NRI, Real-estate seems like perfect Investment option as they can use it for personal reasons as well if ever the need arises. And if not, it is sure to gain them a handsome profit. Property is alot like gold in the Indian market, something that will never go out of vogue. As prime real-estate will never lose its market demand or value, investing in property can get home far higher rewards than the other modes of investment. And while investing in property is a lucrative proposition, it comes with its own set of risks and uncertainties. It is therefore recommended to take proper preventive steps before investing in a property.

What to consider while investing in property in India

To avoid obvious red flags, the investor must keep the following points in mind while putting his/her money.

  1. Research about the property – With plenty of options available in every segment to choose from, it can be a daunting task to zero in on one. So do your homework properly; Know your needs and requirements, and most importantly the budget. And when you have shortlisted some properties, do a background check on the project. What are the amenities on offer, the kind of material used, maintenance charges, permission to make changes to the property etc. are some of the questions you must have answers to before signing that purchase deed.
  2. Check the documents of Property – Check the documents of property to make sure everything is in order. Since a lot of investors are amateur, they get cheated upon by the dealers and agents.
  3. Negotiation works everywhere – It is a myth that property rates cannot be negotiated. On the contrary, negotiation is very much prevalent in property sale and often gets you the best of the deal. Your lawyer will be able to negotiate a beneficial deal for you.
  4. Know your finances – It is important to know how much money can you put in a particular investment. Even if you relying on the bank loan, it is crucial to include the factors like interests and over the head expenses.
  5. Patience is the Key – Unlike other modes of investment, the return on investment in property takes a considerable, atleast 5 years. So it is imperative to practice patience both while buying the property and expecting returns.

A little help from a legal expert can make the entire process smoother and less tiresome. An expert lawyer will do all the required research, including title search, reducing chances of fraud by a great margin. Also, make sure you get your sale agreement cross-checked by an expert to further reduce the chances of any kind of cheating.