Property Exhibition To Be Held In Kuwait On Jan 11 & 12

Builders from across India will display their new launches in Property Exhibition which will be held in Kuwait on January 11 and 12. The builders hope to find some NRI customers.
Property Exhibition The platform to gain firsthand information

Property Exhibition: The platform for NRIs to gain firsthand information.

Indian Property Exhibition will be held at Ramada Hotel in Al Rigga, Kuwait. The exhibition will be opened for the visitors from morning 10.45 am to evening 8.30 pm. This is the 23rd Indian Property Exhibition  held in Kuwait.

Mantri Group and North Town will sponsor the property exhibition, a meeting point for the home buyers and builders. Nearly 100 projects will be displayed. Properties from tier I and tier II cities are also expected to be displayed. Continue reading

Cap Removal on Loans to Lift NRI Real Estate Investments

Non-Resident Indians’ -NRIs, desire to invest more on real estate properties, has been further boosted by the Cap Removal on Loans.

Recently it was reported that nearly 90% of NRIs living in the United Arab Emirates (UAE), prefer Real Estate Investment. Most of them prefer to buy homes in India not with the plan to return rather as a safer means to invest their additional income. The survey pointed out a six point growth in comparison to the previous year.

Rupee’s lower value, volatile nature of stock markets, etc. are said to be enhancing factors for Real Estate Investment. Moreover the sluggish real estate prices often bring in higher returns. Besides all the above factors, availability of bank loans plays a prominent role. Continue reading

Real Estate Remains Smarter Investment: Say UAE NRIs

The present statistics show that real estate is termed as one of the most favorite investment options.  NRIs who reside in UAE agree with this.

Fall of Indian rupees drags the NRI investment in India. Most of the NRIs   invest on properties. Sumansa Exhibitions’ survey revealed that 89% of the NRIs of UAE invest in real estate. Continue reading

Tips NRIs Must follow to Reduce Tax Liability

NRIs (non-resident Indians) play a vital role in the development of real estate in India. However they face problems in selling their properties in India. Some useful tips are provided to reduce sale tax liability.

NRI faces Sales Tax Liability

NRI faces Sales Tax Liability in Selling of their Real Estate Property.

Before selling the property an NRI must be aware of some basic rules and regulations which govern the sale of any property in India.

As real estate investment is considered as the most suitable  option for investment, NRIs are tempted to invest more on properties especially in hotter areas like Mumbai or Bangalore. Continue reading

NRIs want to buy home in India

NRIs are investing into residential real estate specifically in large Indian cities to build a back-up base in the country as many of them intend to set up businesses in these cities in the future. I think there is  not a single non-resident Indian (NRI) who is not keen to buy real estate in India. Having a own home in this country is one of the means available to them to stay connected to their motherland. As they make their fortunes abroad, such investments in their country help them to maintain their relationships back home.

What I found most interesting was that they had not even considered eventually relocating to India when they bought property here as they have simply done it for investment.

NRIs are investing into residential real estate specifically in large Indian cities to build a back-up base in the country. This particularly applies to NRIs with professional/entrepreneurial ambitions who intend to set up businesses in these cities in the future.

As during 2008-2009 global financial crises (GFC), India has presented itself as an example of financial stability. This GFC has caused NRIs to seriously think about buying homes in India.

As per the limits regarding how many commercial or residential properties they can own in India, there is no restriction to the NRIs. But when a NRI wants to sell and take the money back, he can do so with the sale proceeds of only two units. NRIs can invest into real estate by transferring funds to India through normal banking channels, or by invest through funds in a Non-resident external (NRE)/ Foreign currency non resident (FCNR)/ Non- resident ordinary rupee (NRO) accounts maintained in India. But payment via travellers’ cheque or foreign currency notes is not permitted.

Home loan can be availed from Indian institution approved by the National Housing Bank (NHB), and loan repayment can be done either through inward remittances, debit to a NRE/FCNR/NRO account, through the rental income which is earned in India. NRIs can also apply for home loans from the employer in India, provided specific terms and conditions listed by RBI are met.

NRIs are allowed to mortgage their residential property in India with an Indian financial institution without any approval from RBI. They can also mortgage it with a foreign financial institution with prior approval from RBI.Also they can rent out their residential property without the approval of the RBI in India and the rent received can be credited to NRO/NRE account.

Checklist for NRIs Willing To Invest In Real Estate

1. Doing a bit of research on the track record of builder can help.

2. For any real estate purchase it is preferable to make visits to the sites before buying them. This exercise is worth it not only because we are committing a large amount of money but also because reversing the decision proves costly as well. If the NRI is not able to make it, he can request a trusted friend or relative to opt for the site visit.

3. Going for a home loan through a bank will ensure that the money is released in stages only. This keeps the money safe during the construction. Also, all the banks at their local branches have their list of shortlisted builders for whose constructions loans are pre-approved. It is better to buy only these constructions, as the banks are quite stringent in their norms for pre-approval and shortlist only those builders who have a proven track record and those project, which comply to all legal norms.

4. Post the construction, the management of the asset is one of the major issues faced by NRIs. There is no easy solution for this. There are some society associations which support the owners of the buildings with services like maintenance and rent collection. There are again the “friendly neighborhood real estate agents” who may some times double up as the maintenance manager too. Many times though the “friendly” turn into “greedy” after some time. There are a few professional real estate management firms in most metros, which are now expanding into the Tier-II cities too.

5. Some of the other checks for any real estate purchase are:

i. Whether the construction rate quoted is for Built-up area or Carpet area? Construction is generally quoted for built-up area and rental is quoted only for the carpet area. There can be a difference of 15 % to 20% between the two based on the type of construction. Today in apartments there is the concept of super built-up area which apart from the built-up area includes stair case, common passages, fire escape passage, etc. The super built-up area can be bloated by as much as 50% of the carpet area.

ii. Robert Allen, the Real Estate Mogul suggests the 100 – 20 – 10 – 1 rule for any real estate purchase. The idea is to check out 100 properties in person; shortlist 20 of them for a deeper scrutiny; enter into negotiation with sellers for 10 of the properties and finally buy the ONE that is best suited.

iii. Technically there should be a check for all the statutory approvals – town planning, water supply and sewage disposal, safety approval from the local fire department, etc. It is always better to ask for the encumbrance certificate and the title deed from the builder to get a legal opinion from a lawyer.

6. Don’t hesitate to ask. This is probably the most important point. Many times, for avoiding being thought of as less intelligent, we question less. For any investing and particularly for real estate the more the questions asked the better the investment. The genuineness of the promoter can be gauged by the patience, the promptness and depth of the answers. Answers like, “Don’t worry about that, we will manage”, without going into the specifics are danger signs.

7. Take time. Do not restrain yourself by limiting the time for checking the properties and decision making to the time that you are present in India. A 2-4 week holiday cannot be hoped to be converted into a real estate investment period. Start the process before you come here. In case you cannot decide before you leave, it is OK. A Power of Attorney to a parent or a relative can be used to decide on the actual purchase even after you leave the shores of India.

Vijaya Bank looking at business from NRI accounts

Vijaya Bank has prepared a blueprint for taking its business from NRI accounts to five thousand crore rupees by 2011.
At present, NRI accounts contribute almost thirteen hundred crore rupees to its consolidated business volume.
Vijaya Bank Chairman and MD Albert Tauro said, “We are working on ‘Mission NRI 5000’ to grow to five thousand crore rupees in the segment by financial next year”.
Further he added, “We plan to grow both in terms of clients and volume in this segment, especially in Kerala, Karnataka and Andhra Pradesh, but it would need some seeding time”.
Besides, the bank has taken lead in financial inclusion and branch-less banking by opening almost a million no-frill accounts.
He added, “We will soon launch mobile banking facility and up our number of branches and ATMs to 1200 and 500, respectively, across India”.
He pointed, “Our CASA stands at 24% and we are targeting CASA level of 28% by the end of current financial year”.
Tauro informed, “The bank has successfully brought down its cost of deposit and raised yield on deposit. This has improved our net interest margin from 1.68% to 2.38%”.
The bank had so far restructured and rescheduled Rs 2,400 crore worth of loans, especially to the MSME, housing and real estate sectors.
The CMD was in town to inaugurate ten new branches in Lucknow region. The branches were opened in Lucknow, Badaun, Fatehpur, Hardoi, Pilibhit, Sultanpur and Hathras districts.

Hollow budget for real estate

Lots of expectations were to be met. Lots of requirements were to be fulfilled. Industries were waiting for a rescue hand from Mr. FM to fight against recession. Nobody is happy with this average kind of budget. I was watching pre-budget views and I was hoping much more than what is presented in budget.
If we talk about real estate sector, there is no major change. Government made it easy to build multi storey buildings in rural areas. The fact behind is, will any builder invest his money to make a multi storey building in rural area? My answer is simply ‘No’ and I hope most of the builders think the same. If we talk about the raw material used in this industry, there is no deduction in rate. This means, the struggle of a middle class person, to build a home, has increased.
No solid steps are taken to increase foreign investments. No attractive plans for NRIs. This simply means that Government has no concern for foreign investment.