Real estate has always been considered a sound investment, and for good reason. For most Indians, there is an emotional side to home ownership. And it does feel good to have your own house; you can feel like it is a home and not just a temporary dwelling.
The Covid-19 pandemic has disrupted economies worldwide, and India is no exception. Despite several challenges faced during the last two years, the Indian real estate market seems to be thriving. The reopening of the property markets in India has led to an increased interest in buyers. One segment of clientele that contributed significantly to the real estate market’s growth is the Non-Resident Indians (NRIs). Thanks to the revised real-estate market regulations; making the whole process convenient.
As per the latest reports, demand for land has surged due to limited availability of same. It further stated that NRIs have invested $13.3 billion in the Indian real estate market in FY 21, as against the earlier estimates of $13.1 billion. India is among the top 10 price-appreciating housing markets internationally.
Buying land is surely a great way to invest your money. For years, real estate investors have been investing in land and it has yielded some amazing results, too. If you are planning to invest in land, here are some general factors you should consider before buying a property.
1. Location
It is one of the most important things to look at when buying land. The location of land in India matters a lot because the future appreciation value of the land depends on where the land is situated at.
A project that is located within city limits provides great resale value and also leads to stress-free living. So to buy a land check it thoroughly and ensure that you are investing in a locality that is developed and has given investors some amazing returns in the past and there are future urbanization plans by the government.
2. Value, area of the plot
Do not rush to buy just any land for the sake of investing. You should always consult real estate agents about the real value of the property or people who may know about the same.
So check whether the area of the potential property fits your investment criteria or not.
3. Budgeting the expenses
Cost is a decisive factor to be considered while purchasing a property. Generally, people pay 20 percent of the cost of the property through cash and opt for a home loan for the remaining 80 percent.
It makes sense to choose a loan amount wisely to avoid a debt trap. A home loan ensures that one can pay the cost of the property in monthly emoluments instead of paying a lump sum amount upfront.
Cost is a decisive factor to be considered while purchasing a property.
4. Verifying seller, property title deed
Verify the seller and their credibility to sell the property. After duly researching the seller, you should take the next step. Also, check that they were not involved in any disputed property litigations.
Ensure that you verify the property title deed thoroughly because there have been cases of fraud before relating to sellers selling buyers’ disputed property and then the buyer has to undergo all the legal formalities so, it is better to be safe than sorry!
Also, check whether the seller has taken all the necessary approvals by the local authorities to sell the property or not.
5. Reputation of the builder (when building a house)
A buyer needs to choose a developer of good repute. Purchasing a property from an experienced developer will ensure that the quality of construction is maintained. Also, the handover of the property from the builder to the buyer turns is a smooth process.
These days property buyers have various online portals where they can do their research before they make the final decision. Online real estate portals let the buyer compare properties from a multitude of developers and then choose the best that suits their budget and requirements.
Government regulations NRIs need to be aware of when buying property
NRIs are allowed to purchase residential or commercial properties in India but they are not allowed to purchase any agricultural land, farm house, or plantation property in India.
The purchase and acquisition of immovable properties in India, by non-residents, are governed by Foreign Exchange Management Act (FEMA) and are administered by the Reserve bank of India (RBI). A Non-Resident Indian (NRI) is an Indian citizen who is resident outside India for FEMA purposes.
IS IT THE RIGHT TIME TO INVEST IN A(BUY) PROPERTY IN INDIA, OR SHOULD ONE WAIT?
If it is for self-occupation and it is your first purchase of property in India, then property consultants suggest that you shouldn’t wait too long.
If you are financially ready for it, like if you have saved up enough funds to pay at least the down payments and the cost of furnishing (in case you plan to fund this by a home loan), then experts recommend going ahead.
If it is just for investment purposes, then you need to look at many factors like the growth prospects of the area or the city you are looking to invest in, the current valuation, etc.
The end of lockdowns and the re-opening of travel, along with favorable financing conditions have prompted NRIs to invest heavily in Indian real estate. For NRIs, real estate investment brings in a plethora of opportunities.
