Why Is Buying A Second Home A Wise Investment Choice For Nris?
Real estate is one of the preferred choices for NRIs. There is a growing preference for NRIs for luxury homes, which results in the purchase of second homes. Buying a property in India helps NRIs to stay close to their roots and book a place to retire.
Now we can explore the key benefits of buying a second home for NRIs planning to is the best investment choice.
One of the best reasons why buying a second home is the best choice is that it will yield a good rental income. Renting out a second home will help to get a source of passive income. Investing in prime areas close to IT hubs will help to get good rental income, as there is a demand for properties from IT professionals.
Real estate is a reliable asset that allows the investor to build wealth. Buying a second home enables NRIs to expand their real estate portfolio. Foreign currencies make property prices more affordable for NRIs in India, which will result in increased profit.
Investing in a second home will give tax advantages for NRIs, and it will help them to maximise returns. If a second home is bought with a home loan, tax deductions can be paid under Section 24(b) of the Income Tax Act. There is no limit on the interest deductions for a second home that is rented out.
Investing in a second home is a profitable investment for NRIs. It will result in an increase in prices in the long term. Investing in developing areas is the best option as there will be an increase in property value over the years. Big cities such as Bangalore, Delhi, and Mumbai are some popular areas for property investments. These areas are seeing an increased demand from NRI investors.
Many NRIs wish to invest in a home in India that they can use after they retire. They prefer big gated communities with modern amenities for their dream home. Investing in prelaunch properties like Prestige Evergreen in Whitefield is the best choice as it will have huge discounts at an early phase. By the time of possession, its value will increase to a great extent, and they can rent it out or resell it for a high profit. Otherwise, they can use it to settle when they retire.
The real estate market has become efficient after the arrival of RERA. It will protect the buyers’ interests and has increased the trust among overseas buyers for NRIs. RBI has relaxed regulations that allow NRIs to invest in multiple properties without needing any approval.
Buying a second home has many financial benefits for NRIs, including tax benefits and the choice to generate passive income. Also, it can be used to generate good rental income or as an asset to be used after retirement.
As all the properties are RERA-approved now, NRIs can safely invest in India without facing any disputes in the future.
Yes, NRIs can own multiple properties in India as they wish.
Rental income in India is taxable based on the income tax laws. NRIs must comply with the TDS rules.
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