NRI BUYING PROPERTY IN INDIA

Indians going abroad for brighter financial prospects has been an ongoing phenomenon for decades. But in the past few years NRIs are looking to buy property in India. Some see it as a way of staying in touch with their cultural identity, others as a purely commercial exercise. Whatever the reasons, the experiences that NRIs have had to buy property in India as an investment, management, and development have been varied and interesting.
TYPES OF INVESTMENT
A large section of those who buy property in India do it largely for their own use. These are people who plan to live abroad for a few years, earn money, come back to India to raise their children and be close to family and friends. At that point, they need to have a home to or a property that they can liquidate to set up life in India.

Another category buys large holdings as a business proposition in India. The investment is in either residential, commercial, housing developments or a combination. Often, projects can be an outcome of a NRI property owner, an Indian developer, and a foreign architect and project consultant. The permutations are varied depending on the property and the financial commitment expected from all parties.
MONEY MATTERS
People who buy property in India for his own use is generally prepared to invest between Rs.25 lakhs to Rs.75 lakhs for apartments or residential sites. Flats are the safest option since a reputed builder can deliver the goods without problems and the money invested is in trusted hands. If the NRI buyer has a trusted family member to negotiate a land deal and the construction of the house, it is a considered option.

Tharini Chakra borty, who works with Synopsys in the US, recently bought a flat in India. “People finance property by taking a loan on their home equity in the US. Some even buy with cash from stock market gains. They lease it out or their relatives occupy the property till they want it in the future”. Vibhas Bhalerao, a CA in London and prospective investor, has interesting observations, “I want to buy a flat now in Bangalore as an investment, a part-time retirement option for the future, and also as a physical, tangible link with India for my child. In fact, British citizens of Indian origin are also considering retiring in India because of the climate here that is warm, often dry, and the infrastructure has improved over the years. English being widely spoken, and cost of living and medical care being cheaper than in Southern Europe are attractive lures”, he says.

Some investors even approach Indian banks for loans. Some options include4 hiring agents for a fee to manage the property in the absence of the NRI owner. Initial buyers prefer starting small with Rs.25 lakhs, and if successful, they are even ready to repeat the process to buy property in India different cities.