Aim of the NRIs while buying flat in Ahmedabad
Ahmedabad is the seventh largest city in India. In recent times it has become a favorite place for investment by NRIs. Not just the NRIs; owing to the presence of many companies in the city, the demand for property has increased in past years.It is well known that purchasing a property is more profitable than leaving ones money lying in the bank. Nowadays it is the best sector to invest in because it provides long-term benefits. Precisely that is the reason why many NRIs prefer buying property. Not only the rent accrued from these properties keep a regular cash flow, but also the capital value of the property appreciates in few years’ time.
Wealthy NRIs are becoming more and more conscious of the benefits of purchasing property, especially flats because of the high return on investment. It has been observed that they are more interested in investing in 2 BHK flats in Ahmedabad, India, because 2 BHK flats are easier to maintain and easier to rent. While they are away they put up these properties for rent. It not only serves to generate some income here, it is also a security they have in case they have to leave their adopted country and come back.
Reasons people prefer 2 BHK flat in Ahmedabad, India
Buying a property is one of the biggest investments. It is thus necessary to understand the needs of the present moment, as well as that of the future. 2 BHK flats are the most sought-after property in Ahmedabad, especially if the buyers are middle class people with small family. However, it has been found to be favored by the NRIs also. Here are some of the reasons why 2 BHK flats are preferred by the buyers:
- While renting a home, people usually prefer 2 BHK flat, over 3 BHK because 2 BHK flats are sufficient for a nuclear family.
- For economic living 2 BHK is the best option.
- Once, the space issue is sorted out, the next thing people think of is the cost. Since the price of 2 BHK flat is lower the interest on the loan amount is also less.
- When one thinks about reselling a flat then finding a customer for 2 BHK flatis much easier. Also the selling value is higher.
- 2 BHK is the best investment as far as rental is considered.
Ahmedabad: An investor friendly city
There is a significant rise in investment in 1 BHK flat in Ahmedabad, India, compared to other cities because of the affluence of the people. The city has evolved from the one that caters mainly to the middle income group to one that has high number of luxury housings owing to the interest of NRIs in investing here. Even when there was a slowdown in property market in the state of Gujrat, the market in Ahmedabad had flourished. Gujrati people living abroad prefer to purchase property in Ahmedabad because it can provide them the kind of lifestyle they are used to in their adopted country. The city has experienced robust appreciation in last few years.
Ahmedabad has the potential of becoming one of the most luxurious destination for property buyers. There are many high-budget infrastructure projects going on in the city. NRIs looking to buy 1 BHK flat in Ahmedabad, India, have variety of choices. Several branded property developers are competing with each other to capture the real estate market in Ahmedabad.
Projects in Ahmedabad
There are various lucrative housing projects in Ahmedabad, where ready to move flats are available. Usually, the NRIs do not stay for a long time; hence they have a very short time to search for a suitable property, make a choice and complete all the formalities related to the purchase. It is thus convenient for them to purchase a flat that is complete and ready to move in.
More often than not NRIs do not have time to get involved in property dealings. Property hunting is a process that might take months. Skilfuldealers are available in Ahmedabad to handle the purchase even if the buyer is not in the country. They can finish the purchasing process for their clients. Realtors in the city understand this demand of the buyers. They work together with property managers who are specialized in such property management services for the NRIs. NRIs on their part also feel relaxed as the whole process eliminates many hassles involved with property purchase in Ahmedabad. As a result, more NRIs tend to invest in real estate in the city.
Do the NRIs have to pay tax when they give the property in rent?
According to the laws of the land one has to pay income tax from earnings. Thus, even if an NRI is paying tax in the country of the residence, he/ she will have to pay tax on whatever they from the rent. However, this income may also be taxable in the country of residence as well. It is thus, always advisable to check the Double Taxation Avoidance contracts that India has with different countries.
An NRI from USA, for example, will have to declare his income in both India and USA for the purpose of tax payment.
Reasons Ahmedabad is becoming a hub for property development
- One of the reasons Ahmedabad is fast becoming a sought after place for the development of property is because of its proximity to big cities. It is connected through several highways to other important cities like New Delhi, Mumbai and Gandhinagar.
- Airport like Sardar Vallabhbhai Patel International Airportis 15 kilometres from the city. Dholera international airport near Ahmedabad is going to be the largest airport in the country.
- State government has initiated mass transit metro railway project in the city.
- Bus Rapid Transport System (BRITS) project has connected every corner of the city.
- Ahmedabad has no lock-in period to sell the property, thus making it investor friendly.
The real estate market in Ahmedabad has flourished in last few years and tis spurt in growth is mainly due to the presence of NRI investors.
Article Submitted By Community Writer