Things To Consider For An NRI To Invest In Commercial Property In India

If you are an NRI and looking to invest in a commercial property in India, take a note on few things you before you start investing in a property: Location- It is one of the most important thing when you are looking to buy a commercial property. Conduct a research of that location such as collecting information on the kind of rents that other similar properties have and make a list of the clients and office space in India. High returns with due diligence: You are investing in a commercial property in India because you want to get higher return on investment. Investing in a commercial property is supposed to generate income for you. When you are satisfied with the available information about the property, approach the seller and negotiate well to make a good commercial deal. Try property loan calculator to know how much loan you can avail to buy a desired property which gives you good returns. Regulatory Act: In order to attract more foreign investment, the RBI has made the rules for property buying in India quite simple. Real estate transactions are governed by the rules under the Foreign Exchange Management Act (FEMA). Types of properties: There is no restriction for an NRI on the investment of properties. Overseas Indians can buy as many residential as well as commercial properties in India as they want. But, on agricultural land, plantation property or a farmhouse, there is a restriction on foreign investment. Fire and safety standards: Before investing in a commercial property, it is always better to check the plumbing, electricals, and other fixtures of the property. This will help you in the long run. Municipal Corporation Department is working to ensure strict safety standards, especially in terms of fire and other disasters. Before taking a plunge, check the accountability of any such event on the property owner and get appropriate cover for it. Check the maintenance cost: There are so many additional costs are attached with owning a property such as maintenance costs. It varies across buildings. In a commercial property, the utilities and others cost would be higher. Cost of the security of the complex and some other important facilities might not come as surprise for you. Financial transactions and funding: It is mandatory that all the real estate transactions should be done in Indian currency through Indian banks. One of the mandates is to have an NRI account in an authorised Indian bank. No-due certificate: If you investing in a property in India and if the property is inherited or jointly held, take a no-dues certificate from the seller at the time of purchase. Also, make sure that there are no pending bills or dues with any authorities.ã Power of atto ey: In case you are buying an under-construction property, an NRI has to give power of atto ey to developer of a project or a trusted associate. Take help from your lawyer, and get a proper document made so that there is no chance of forgery