NRI Investors: Unraveling the Mysteries of RERA, GST, and REITs for a Hassle-Free Investment Experience

India has emerged as a hot investment destination and is a bright spot in an otherwise tepid global environment. Out of the many investment options available for Non-Resident Indians (NRIs) like the stock market, gold etc., investment in real estate is not only lucrative but also offers some of the best and highest returns in the medium to long term. Further, it is a very safe investment option.

Some of the top reasons for NRIs to invest in real estate in India are:

1. Stable economy and political environment
2. Rising affluence and middle class
3. Attractive rental yields
4. Helps NRIs diversify their investment portfolio
5. A hedge and home in case of unforeseen political challenges in foreign lands

As a leading real estate company in Chennai, Wisdom Properties helps NRIs unravel the mysteries behind the Real Estate (Regulation and Development) Act, 2016 (RERA), the Goods and Services Tax (GST), and Real Estate Investment Trusts (REITs), which are key pillars in any real estate transaction. If you are looking to invest in DTCP approved plots in Guduvancery, plots in Oragadam, villas in Maraimalai Nagar, plots in Sriperumbudur or gated community plots in Oragadam, get in touch with us immediately for the best deals and locations.

RERA

RERA was introduced to bring accountability and efficiency in the real estate sector. Particularly for NRIs, RERA provides a safer environment for investment as it mandates that all commercial and residential real estate projects, where the land is over 500 square meters, or eight apartments, must be registered with the Regulatory Authority. This gives a safety net to NRIs and an assurance that their investment is in the right project,

RERA ensures that developers adhere to project completion timelines, and in case of delays, they are liable to pay the same interest as the EMI being paid by the consumer. This act also mandates that developers put 70% of the money collected from buyers in a separate bank account for construction of the project, reducing the risk of bankruptcy or illegal diversion of funds.

GST

For NRIs, understanding GST is crucial as it impacts the overall cost of the property.

Implemented in 2017, GST provides a comprehensive indirect tax framework on the manufacture, sale, and consumption of goods and services at the national level. In the context of real estate, GST is applicable to the purchase of under-construction properties at a rate of 5% for residential units (1% for affordable housing), while ready-to-move-in properties are exempted.

Similar to the above, there are ongoing changes and updates to GST laws. It is best to get in touch with your auditor or tax professional before taking a decision regarding purchase of property and the proposed GST impact it may have.

REITs

REITs are companies that own, operate, or finance income-generating real estate. They offer a way to invest in real estate without having to physically own property. In India, REITs have opened up opportunities for small investors to invest in grade 'A' commercial real estate, which was earlier limited to only institutional investors or HNIs.

With knowledge of all of the above, NRIs will be empowered to take the best and right decision according to their needs. Wisdom Properties is a market leader in promoting plots, villas and real estate in Chennai. The company has played a major role in the real estate industry and helped over 5000 customers realize their aspirations over the past 25 years.

Led by an experienced and professional team, Wisdom Properties assures investors of clear titles and prime locations of the property. The company is engaged in the sale of plots, villas and farmlands in different hot and upcoming locations in Chennai and the suburbs like Guduvanchery, Maraimalai Nagar, Oragadam, Kanchipuram etc. For more details, contact Wisdom Properties at +91- 93606-93606 or sales@wisdomproperties.com