HOW CAN NRIS LEVERAGE THEIR INVESTMENTS FROM THE RENTAL INCOME?

The Indian real estate sector has always attracted NRIs; many of them invest regularly in various thriving cities. Not only the happening and high-end areas but also the outskirts and developing townships in the metro as well tier-II cities have been attracting NRIs. It’s better for NRIs staying abroad for a long time to let out their residential flat in India. For one, it takes care of its maintenance and other local expenses and secondly, a steady income is generated which could help with specific financial goals.

As an NRI, there are two aspects to make the most of your rental earnings. The second relates to the investment process to channelize such income towards meeting a definite financial goal. Investing in real estate has the potential to provide regular rental income, while also giving scope for price appreciation. 

 Investment in properties in flourishing areas is going to prove financially advantageous in the near future. Buying a property in India keeps you connected to your roots and gives you a sense of belonging. The returning NRIs can reap the benefit of current stable prices; they can buy spacious and luxurious flats, villas, or bungalows at reasonable rates.

Many of the NRIs buy residential property for their families back in India while many buy property for investment purposes and earn regular rental income. Renting out also ensures proper maintenance of the property. With the surge in businesses and people moving to cities, there is a huge demand for residential rental properties which ensures guaranteed returns on the invested money.

Why Rent Out?

Renting out minimizes the continuous liability; in the case of a property loan, monthly rent can help to pay the EMI. Furthermore, it helps with the taxes as well. We have to pay tax in the country where we earn. NRIs also will have to pay tax in India based on their earnings through rent. To invest on a repatriable basis, you need to have an NRE, while a NRO account is required for investing on a non-repatriable basis. For investing in India, ensure you make a rental agreement to have the rent credited to your NRO account. This in turn will facilitate investments into India.

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Global Realtors:
Mr.Siddhu Adhav.Property Consultant Since 2010

Email :-info@globalrealtors.co.in

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