My cousin in Dubai wanted to buy a flat in Pune for his parents. What seemed like a simple investment turned into a 4-month legal and financial rollercoaster.
If you’re an NRI eyeing Indian real estate, here’s what nobody warns you about:
𝐓𝐡𝐞 𝐄𝐦𝐨𝐭𝐢𝐨𝐧𝐚𝐥 𝐓𝐫𝐚𝐩:
✗ “Builder looks genuine, just wire the money”
✗ Trusting distant relatives to handle paperwork
✗ Thinking “India mein sab jugaad se ho jata hai”
✗ Skipping legal verification to close deal faster
𝐓𝐡𝐞 𝐋𝐞𝐠𝐚𝐥 𝐑𝐞𝐚𝐥𝐢𝐭𝐲:
→ NRIs CAN buy residential/commercial property
→ But CANNOT buy agricultural land or farmhouses
→ Must use NRE/NRO bank accounts only (no cash, no informal transfers)
→ Power of Attorney is essential (but choose wisely!)
→ RERA registration verification is non-negotiable
𝐓𝐡𝐞 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐌𝐚𝐳𝐞:
→ NRE account purchase = full repatriation of sale proceeds later
→ NRO account purchase = only ₹1M repatriable per year (huge trap!)
→ TDS on sale = 20% (higher than residents)
→ Budget 8-10% extra for stamp duty, registration, legal fees
→ Home loan interest rates 1-2% higher for NRIs
𝐓𝐡𝐞 𝐒𝐦𝐚𝐫𝐭 𝐀𝐩𝐩𝐫𝐨𝐚𝐜𝐡:
✅ Hired NRI-specialized property lawyer — ₹50K well spent
✅ Verified title & encumbrance certificate — found 2 red flags
✅ Used only NRE account transfers — complete money trail
✅ Video-called for every site visit and documentation stage
✅ Got tax advisor involved early — planned capital gains strategy
✅ Registered property in single name — easier repatriation later
𝐓𝐡𝐞 𝐎𝐮𝐭𝐜𝐨𝐦𝐞 (𝐀𝐟𝐭𝐞𝐫 𝟒 𝐌𝐨𝐧𝐭𝐡𝐬):
→ Property registered smoothly ✓
→ Parents moved in (priceless peace of mind) ✓
→ Rental income option available for future ✓
→ Full repatriation rights protected ✓
→ Zero legal complications or disputes ✓
𝐋𝐞𝐬𝐬𝐨𝐧𝐬 𝐋𝐞𝐚𝐫𝐧𝐞𝐝:
🔑 Physical distance ≠ skip due diligence
🔑 Repatriation rules can make/break your investment
🔑 Never use informal money transfer channels (hawala = nightmare)
🔑 Professional help costs less than legal battles
🔑 Documentation must be flawless — NRI status = extra scrutiny
𝐓𝐡𝐞 𝐁𝐨𝐭𝐭𝐨𝐦 𝐋𝐢𝐧𝐞:
Buying property in India as an NRI isn’t impossible — it’s just detail-heavy. The emotional pull of “apna ghar” is strong, but paperwork precision is what protects your investment.
Drop a 🏡 if you’re an NRI planning to invest in Indian property.
Follow Sushant Sinha for real insights on NRI investing, property planning & cross-border wealth building.
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