Owning a home in India is so much more than an investment, it’s not just brick and mortar but comes with powerful sentiments attached. For NRIs, owning a residential property in India is a way to stay connected to roots, have a familiar place to return to during visits or holidays, and have a plan for a secured future – then, be it retirement or a potential move back home.
A second home is not just a diversification in your investment portfolio, rather, it offers emotional benefits and future planning in addition to the obvious financial benefits. As an NRI, you may need a personal space back home, whether for festive celebrations, family visits, or simply a comfortable place to stay when you visit.
To top it all, it is also a smart financial decision, considering India’s growing real estate market and the potential for long-term appreciation.
Here are some key reasons for you to invest in a second home:
Visiting your own country is all about celebrating festivals, meeting loved ones, and going on a nostalgia trip. You won’t have to rely on hotels, relatives, or BNBs when you visit, which can often feel impersonal and troublesome.
Even though the primary purpose of owning land in India is not mere investment, it is one of the reasons. The real estate market in India continues to grow at a steady pace, more than metro cities, even tier-II and tier-III cities are now emerging as real-estate hotspots. Buying property now can mean significant appreciation over time. If you choose the right location, your second home could also generate rental income when you’re not using it.
According to a Morningstar Article, a lot of NRIs are choosing to return to India after retirement. For such scenarios, a second home can serve as a retirement home; moreover, you can also invest in senior living homes for retirement home purposes. Peaceful locations like Jaipur, Chennai, Lavasa-Pune, and Bhiwadi(Delhi-NCR), offer great senior living homes with age-friendly architecture, well-though and well-planned amenities, and a community of like-minded and similarly aged individuals which altogether make up for a perfect home.
Ref: https://www.morningstar.in/posts/76585/increasing-numbers-of-nris-choosing-to-return-to-india-in-retirement.aspx
Owning property in India also means having a tangible asset for your family. Whether it’s for your children to stay in during visits or as an inheritance, real estate offers long-term security.
The Foreign Exchange Management Act allows NRIs to buy residential as well as commercial property in India. It’s crucial to dive into the legalities and to ensure proper paperwork before finalizing any deal.
Metro cities might seem like an ideal choice but think twice before finalizing them. Most metros in India are on the verge of population explosion and have very poor traffic congestion, whereas Tier-II and Tier-III cities are gaining popularity as emerging housing locations.
Always consider the following amenities whenever choosing a location –
Since buying real estate is a big deal, it is only wise to manage your finances well when planning to buy property. As an NRI, you can apply for home loans from Indian banks as well but you will need an NRE or NRO account for transactions. Make special note of additional costs registration, maintenance fees, and taxes. Finally, check if your current country has a DTAA(Double Taxation Avoidance Agreement) with India so that you can avoid paying taxes on rental income.
Maintaining a home in India is a challenge in itself, and doing that from abroad can bring a lot of hassles. Ensure buying from a trusted developer who’s customer-centric, additionally, you can also hire professional property management services in case of standalone homes.
Ashiana Housing has been a popular and trustworthy name when it comes to real estate – with an experience of more than 45 years of delivering thoughtful and convenient living spaces. At Ashiana, our aim is not to sell housing but to build homes, our job starts when you take possession of your home, then be it from an investment point of view or for living, we’ve got you covered.
Whether you want a retirement home, a vacation retreat, or an investment property, our projects provide world-class amenities, security, and a hassle-free buying and living experience.
For any non-resident Indian, buying a home in India is much more than a financial decision. It’s about creating a space that you can call home, a place that you can visit whenever you feel like, a place that is your asset for the future, and a place that keeps you connected to your roots. Now is the right time to invest in a second home in India, but when you do, make sure to choose the right location, understand legal and financial aspects, and work with a trusted real estate company/developer.
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