The Falling Rupee - Advantage NRIs
The Rupee's recent downward roll has proved profitable for NRI Investors who are looking to buy property in India.
The most preferred area of investment for NRIs continues to be real estate in India. It promises rapidly growing value and good returns when optimally invested in. Now, as the US Dollar hikes well above sixty times the value of an Indian Rupee, most NRIs are looking at this as an attractive opportunity to remit their hard earned income back home to buy property in India.
After all, the recent slump has led to the Rupee becoming 20% cheaper than before, and this makes it a highly feasible situation for NRIs to get the most out of the Dollar. At a very basic level, this would imply that a property in India would now be 20% cheaper for an NRI than it would have otherwise been.
Many NRIs are eyeing this as an excellent opportunity to invest in property in India, as it will not only be a wise decision, but will also ensure maximum returns.
Also making the best out of the situation are several developers of property in India, who have started targeting NRIs for selling their properties. This, only as long as the cost of construction does not increase as per the devaluation.
However, it is important to know here that an NRI property transaction in India takes about 3-4 months, and the risk factor here is that the Rupee may normalize during this time, which would lead to lesser, or no benefits at all. Hence, the overall benefits depend on the time gap between fluctuations.
However, studies have reflected that investing in value-for-money deals can turn out to be highly effective in such an environment. According to experts, some of the most feasible options include properties in Pune, Bangalore, Chennai and Hyderabad property.
That said, NRIs need to practice caution; although the deal may seem enticing, there are rigorous levels of research that property buyers in India need to do, with regard to location, resale value, rentals and the inventory available. Bear all these factors in mind, think through the deal, and you should be on the right track to making a wise investment.
For more information on NRI property investments in India, log on to PropTiger.com.