Challenges Faced By Nris Before Investing In Real Estate In India

By Author: Sangeeta DigiOwner
Total Articles: 2
Comment this article

Everything has its pros and cons. While investment in the real estate sector by NRIs is best for the Indian Economy, there have been instances where this kind of investment hasn’t reaped the best results for these offsets investors. Below follows a list of the challenges faced by NRI investors:

Illegal or forceful occupancy

People are so busy in their daily lives that they can’t keep an eye on their own houses 24x7 so we can imagine the terror for NRIs. Land grabbing and gatecrashing issues are the most common type of problems faced by NRIs in India pertaining to their unattended properties. Most NRIs are unaware of NRI cells that primarily deal with issues pertaining to NRIs being deceived or deprived of their rights. It is to employ a good real estate management company such as DigiOwner to avoid such problems in the first place. A real estate management company takes care of everything from top to toe whether it’s documentation, property visits, maintenance issues, legal compliances etc.

Investment in fraudulent projects or trust in unworthy builders
Some projects never get completed but ...
... is there a way to predict the credibility of a project before any mishap? Yes. RERA websites provide a track record of builders and also feedback from previous buyers. However, these websites are only a hub for information and stringent due diligence is still required. Builders who make fake promises or projects that get shelved usually have a pattern. NRIs or even Indian investors might not be able to catch hold of these shady investments but property management experts can. They have complete data and analysis of fruitful real estate investments and have a potential of being 99.99% accurate when it comes to investment in real estate. Some of the best property management companies such as DigiOwner even provide investors with a DigiDirectory that helps investors understand the vicinity of the property they are sunking their teeths in. This prohibits any unnecessary cavities later!

Unawareness of legal rights
The FEMA (Foreign Exchange Management Act) clearly states all the rights and regulations with regards to investment in real estate by NRIs. It clearly asserts that NRIs are not to invest in any kind of agricultural land. They are only allowed to park their money in residential or commercial properties. A lot of Punjabi, Gujarati and Haryana localities are now NRIs and they have fallen prey to practices wherein agricultural land has been illegally sold to them.Therefore, Investors should only deal with RERA (Real Estate Regulatory Authority) certified property brokers. It is advisable to NRIs to not sign any documents or transfer any money without consulting property management experts. Leading property management consultants like DigiOwner appoint a personal relationship manager to help with the complete execution of the purchase or investment deal.

Lack of Physical presence
Property Owners present in India need to hire brokers and property managers in order to gauge some assistance in managing and renting their properties. It is obvious that it must be a tedious task to manage properties from overseas for NRIs. Property maintenance including painting, cleaning, pest control, furniture & fixtures, etc. needs to be done every year. Lack in maintenance and poor property management leads to properties remaining vacant for long periods. NRIs need to appoint the right property management consultants in order to reap benefits of owning properties in India.

Last but not the least, not just NRIs but all property owners need to stay abreast with the market scenario and make the most out of their properties.

MISPL DigiOwner is renowned for its services in the real estate sector. We firmly believe that owning a property is more than a mere dealership between the company and the customers. Hence we provide a hand of trust and authenticity when it comes to deal in the real estate sector.