Mumbai, by all means, is a mega city driven by fame, glamor, power, and wealth. Termed to be the economical capital of India, it is here where you can shape up your dreams and aspirations. It is a potpourri of diverse cultures with mesmerizing attractions. Known for its prolific film industry, it is a land full of dreamers. Right from Asia’s largest slums to biggest crorepatis, the city promises to accommodate all. It is often said that the train that comes to Mumbai brings in thousands of people who dream to settle in this beautiful city. Not only Indians, NRIs also dream of investing in this cultural land because of the myriad benefits. Investing in real estate in this financial capital is a lucrative option for most NRIs.
To begin with, any NRI willing to buy a rental property in Mumbai should be aware of the terms mentioned in the two enactments- Income Tax Act and Foreign Exchange Management Act. It’s quite surprising to know that any Indian living outside the country can own immovable property in India. Isn’t that a great perk for an NRI!! Now, if you are looking forward to investing in buying a property in Mumbai, then let’s make you understand the key benefits of your decision:
- In the financial capital i.e., Mumbai, the real estate rates have always been rising. The reason is quite simple. This is because the city experiences the large influx of people from all over India who come to fulfill their dream and earn something big. This results in constant demand for properties in the city, either for the purpose of rental or ownership.
- According to Foreign Exchange Management Act, an NRI has the right to repatriate the rental income which he gets from the invested property in India.
- Once an NRI invests in a residential or commercial property, he/she can earn regular income by putting the property on rent. Furthermore, they also do not have to worry about the hidden tax clauses. It is because the rental income tax provisions are specified in a hassle-free manner. From a rental income tax, a deduction is done with regards to maintenance, 30% deduction towards repair, payment of house tax and other collection charges. The other significant deduction comprises the entire interest payment upon the property purchase which is put on rent. With such deduction benefit, NRIs can take a loan for any respective property.
- The NRIs who are aged can take great benefit of the reverse mortgage. While enjoying the invested property, they are also entitled to take cash from the bank.
Buying a property in India, particularly in Mumbai can make an NRI enjoy plentiful benefits for years. But before investing, they should understand the ins and outs and explore thoroughly about the land. After all, buying a house is a big investment and a slightest of mistake can bring you in great loss. Mumbai is a big city and hence, the frauds here are also abundant. To know about the nitty gritty of a property, you can hire a realtor as per your budget and requirement. But before hiring one, ask for his credentials and look into his/her experience. Explore well in advance and never get misguided. Invest in a property and reap its immense benefits.