Property Prices are at the Lowest
NRI's investors should make the most of the slow real estate market. Historically, the price rise rate in India has always been higher than the matured markets of the West. This is the reason why India can offer more value for money to the investors, with better returns in less time as compared to other prominent real estate markets of the world.
NRI's can invest in real estate in India and can still manage to save tax like a regular Indian resident. Tax deduction on home loans on principal repayment and interest component can be claimed by the NRI's.
NRI's can invest and earn rental income in India without any trouble. Though the 30% TDS (tax deducted at source) has to be deducted by the tenant, the remaining amount can be repatriated under the Foreign Exchange Management Act rules.
Though reverse mortgage is a more popular concept in the US, India is still gearing up for this kind of system. NRI's that tend to plan their retirement can invest in India and take advantage of the reverse mortgage. The amount taken from the bank as a consequence of this type of mortgage is not factored in the taxable income of NRIs. This way, ageing NRI's can enjoy the benefits of their property in India.