Realty News

TIPS FOR NRI INVESTORS TO BUY A HOUSE IN INDIA

tips

It’s a daunting task for NRIs looking at investing in Indian property today. On the outside, with the rupee touching all-time lows against the dollar and India’s ‘real estate’ growth story looking bleak, the prospect for investments in property for NRIs seems like an uphill task. But this hasn’t deterred them from investing in India because, though for Indians property prices have appreciated significantly, for the overseas Indian, it has only been a marginal increase. So, whatever be your reason for investing in India, make sure that you are diligent and careful. Some important questions you need to ask yourself are:
Which city do you want to invest in?
In whose name do you want to buy the property?
If you have invested in a ready property, how do you plan to fund it?
Before any kind of an investment, engage in sufficient research or you may end up buying into micro markets. Also, make sure that the property has secured all clearances required by law. Insist on legal documents to ensure that your investment is safe.

Logically speaking, your first action plan should be to determine the nature of the property because NRI investment rules are different as per RBI guidelines. Buying a property requires time and energy and hence it’s advisable to not fall prey to hoax calls or ‘gut instincts’. Before you zero on into a project, speak to a few builders in the locality on the initial prices and the price for the last transaction. Make sure you visit a completed project by the builder to assess quality before deciding to buy.

Check the developer credentials, prime location, potential for infrastructure development and quality of property management in the project. Remember that apart from the registration cost and stamp duty, there’s also a service tax that will be levied. Once you arrive at a price at which the sale is agreed, pay through rupee denominated non-resident ordinary (NRO) or nonresident external (NRE) accounts and foreign currency non-resident (FCNR) accounts. It’s always suggested to invest in mind-sized property with high-end amenities.

Before you finalise on any property, find a good real estate adviser who will help you out with all the details. It’s advisable not to go to a broker. Most NRIs get tempted to purchase a holiday home in a hill resort or beach property or a retirement home over buying yet another flat in the city. But keep in mind that residential land purchases usually pay off well for most investors. Have any more tips? Share it with us.

Redefining the Luxury Segment!

redefining

Over the past few years you must have noticed the number of luxurious brands coming into the country. While some might say this is because of India standing strong against other economies around the world, others might have another theory to it. Whichever the case, the rapidly rising and developing economy of India has has given rise to a new breed of customers who are highly opinionated and are looking to live luxurious lives, influenced by global tastes and beliefs. These set of individuals, we like to call, the New Affluents.

The New Affluents, while retaining a distinctly Indian Identity, are redefining the market, taking marketers by storm. The Boston Consulting Group has pegged the number of affluent class around 13 million households in India. They love technology, high–living and new-age affluence – in a nutshell, an opulent lifestyle.

While the affluents represent only about 2% of the 240 million total Indian households, their consumption accounted for 16% of India’s overall consumption of US$991 in the year 2010. Studies also show that in 2011, 20% of the affluent spends were on housing and consumer durables, while 17% were on food. A study by Nielsen suggests that the number of affluent Indians regularly shopping at modern stores doled to 36% in 2012 from a mere 18% in 2007.

With an audience like this, there is bound to be changes in the real-estate scenario as well. These are the audiences looking for a better lifestyle of living in lavish and luxurious homes to go with their persona. This has seen a change in the upcoming properties in cities as well. The city of Bangalore is one such example.

Bangalore was transformed into the Silicon Valley of India, as over 500,000 well paying jobs for young college graduates were created. This lead to a boost in the city’s lifestyle. The demographics of the city completely changed with new campus-style office parks sprouting, vast shopping malls thriving and streets becoming crowded with new cars. This also lead to an uptrend in capital values for both mid and high-end properties.

Based on these findings, Tata Housing Development Co. Ltd. held a round table conference in Bangalore to understand and come up with better solutions in marketing for this class of individuals. The discussion was compiled by an array of experts representing different fields to throw light on their areas of expertise.

Read more about the discussion on http://bit.ly/16Zgp8h