The real estate sector in India has witnessed exponential growth during the recent years due to an upward trajectory of incomes that has led to the demand of high quality residences. This growth attracts the attention of investors both local and foreign. The Indian real estate sector has particularly caught the attention of the affluent NRI communities in UK and the USA. The two countries combined are home to an approximately 4.4 million strong Indian community. Investments made in India by NRI’s are a boost to the economy and drive up the market value of real estate in the country.
IshwarParmar group has had a long and fruitful relationship with their investors. The company has been very forthcoming with advice to investors about the right opportunities. The key rule of real estate is Location, Location, Location! Investing in the right property at the right time determines the rate of ROI. IshwarParmar group conscientiously advices their investors in regards to these aspects.

  • Investing in Maharashtra

    NRI’s looking to invest in real estate in Maharashtra can now breathe easy with the Maharashtra Housing Regulation and Development Bill passed by the state assembly last year. This bill mandates that all real estate developers now have to maintain a complete disclosure policy about their projects, paving the way for the country’s first housing sector regulation body. This bill is a turning point for real estate dealings in the state. No other state in India has employed this policy so far and that has put Maharashtra on the forefront of the revolution. Maharashtra is home to the commercial and financial hub of India and therefore attracts qualified professionals from all over the country. The state is also educational hub with a wealth of versatile and skilled human capital. Maharashtra leads other states in terms of FDI’s, comprising of well over 45% of FDI in the country. Being a liberal and modernised state with an upward trajectory in the standard of living has led to the creation of better infrastructure and higher quality residential and commercial spaces.

  • Myths about NRI home loans

    Sukanya Kumar l The Hindu Business Line

    Let’s clear the air around some of the common misconceptions about home loans for NRIs

    There are a number of Indians who have settled abroad for better career opportunities. For them, a property back home usually gives a sense of attachment and security, which is a prime reason for investment in real estate here by NRIs.But there are many misconceptions associated with borrowing in India for this purpose. Let’s address the more common misconceptions you might have.Power of Attorney only to blood relatives: Though certain banks like ICICI Bank or Axis Bank insist that power of attorney should only be given to blood relatives in India, there are lenders such as HDFC and Standard Chartered Bank where this is not a policy.
    In other words, NRIs can give the general power to any person whom they trust, including friends and associates. Also, there are certain banks like HSBC and Citibank that have developed mechanisms where the NRI does not need to give the Power of Attorney to a resident of India in order to take a loan, making it more convenient. Of course, they have other requirements, including a blood relative as a local co-applicant for the loan.
    No joint loans with resident Indians: An NRI and a resident Indian can jointly apply for a loan, but this would be still be considered an NRI loan. Even if the asset is jointly owned, the NRI would be regarded as the principal applicant and his income would be primarily considered while determining loan eligibility.
    The EMI payments will also be made by the NRI, which he could either do through his non-resident external (NRE) account or by opening a non-resident ordinary (NRO) account jointly with the resident Indian and then issuing cheques or standing instructions from that account.
    Shorter tenures and lower interest: Loan tenure and the rate of interest for resident Indians and NRIs are the same. In case of a change in status from NRI to resident, the loan is reworked according to the revised income; the relevant interest applicable is charged and the tenure is also revised.
    NRIs from Middle East can’t get a loan: Just like other countries, NRIs from the Middle East can avail a home loan to purchase property in India. But they need to submit an extra document and that is a copy of their work permit. The card needs to be translated into English by Government-authorised translators.
    Visiting at least once while the loan is being processed: To avail a home loan in India, it is not necessary for NRIs to visit the country at any stage.
    One just needs to have all documents in place, including passport copies, a valid visa, a work permit, contract of employment, work experience certificate, etc., and submit self-attested copies of the same to banks.
    OCI cannot apply for a home loan: Overseas Citizens of India are individuals who have dual citizenship, i.e., they hold a foreign passport but have an OCI card, which also makes them a citizen of India. The home loan norms for them are similar to what is applicable to NRIs.
    The only difference for OCI holders is that they need not pay taxes in India and are not eligible to vote.
    PIOs cannot buy property in India: Foreign nationals or individuals with foreign passports can avail home loans to buy property in India too, but only if they are of Indian origin. All they need to do is to present their PIO card along with other requisite documents.
    While the norms have been eased for NRIs, the only important aspect that they need to keep in mind is that when they are investing in a property in India, they should approach a bank that has a presence in their country. The city where the property is purchased should also have a branch of the bank.