Investing in Real estate in India from US?
Monday, 3. May 2010
Hi,
I work in the United States. I am planning to invest money in real estate in India. I was planning to do the following,
1. Take a Home equity loan in United States.
2. Send money to a NRE account in India.
3. Invest this money in real estate in India.
4. Book some profit and deposit the money back to my account in US.
I had the following questions,
1. What are the taxes that I will have to pay in India.
2. When I take the money back in US, how will I be taxed.
3. Is everything that I am doing legal here?
Many thanks in advance,
Nirav
NARAN Says:
IN INDIA, I THINK – REAL ESTATE
INVESTMENTS WILL EARN U UPTO
20 – 30% RETURNS PER ANNUM*.
(AT BARE MINIMUM LEVELS)
U CAN BUY THE "PROPERTY" USING
THE MONEY FROM YOUR NRE ACCOUNT.
AT THE BUYING STAGE; STAMP DUTIES
ARE THE ONLY EXPENSE (TAX) + BROKER’S
COMMISSION (if one exists)
"BOOKING THE PROFIT" – THE SALE
AMOUNT REALISED WILL HAVE TO BE
CREDITED TO THE "NRO ACCOUNT". THIS
IS A RUPEE ACCOUNT (INR). YOU NOW
CAN’T CREDIT IT BACK "DIRECTLi" TO
THE "NRE ACCOUNT".
FUNDS "PREPARING TO FLOW" OUTSIDE
FROM INDIA, DOES HAVE SOME HURDLES
TO CROSS. PLZ DO TAKE A MORE EXPERT
COUNSEL ON THE "REPATRIATION" ISSUE.
IF U NEED SOME SUGGESTIONS, e-mail
ME AT faizal.email@gmail.com
SG Says:
everything your doing is legal and a smart thing to do