With the prices of property in Mangalore - be it commercial or residential - this may be the best time for all Non-Resident Indians (NRIs) to consider investing in India. The concept of contemporary integrated townships and world class infrastructure has taken wing in a big way across all cities in the country, thereby making investments in real estate in India very promising.
Amendments to the Foreign Exchange Regulation Act (FERA) now permit NRIs to purchase residential and commercial properties without prior permission from the RBI. You can even rent out the property and credit the earnings to your NRO account. The cherry on the icing is: there is no limit on the number of properties an NRI can buy.
- Repatriation is allowed only if payments for the purchase of the flat have been made through banks in India and from repatriable accounts (NRE/FCNR).
- Prior permission of the Income Tax department is compulsory if the value of property is more than the prescribed limits (usually Rs. 10 lakhs for most cities. The attributed value is more for the metros). Permission is to be obtained by Filling Form 37-I with the IT department.
- Application for repatriation has to be made to the RBI within 90 days of the sale of the property.
- NRIs can avail financing assistance for housing loans to buy residential properties in India. These loans are available through leading financial institutions like