THE TRAPS AND PITFALLS
It is wrong for NRIs to assume that they can garner good returns by locking their foreign exchange into high-yielding deposits. More and more NRIs are choosing to invest in Indian real estate because this is the only route that assures them of optimal benefits. As long as they maintain a broad investment horizon and have chosen their properties well, the capital appreciation on real estate will keep these NRIs in good stead.
Most of the projects in India targetted at NRIs are not professionally managed and this has negative implications for someone who is not present in India. Lack of proper projects and facilities management results in dilapidation of such units, and security also becomes an issue. There are often no provisions for paying society dues from abroad. So the property turns out to be a depreciating and legally compromised money trap. NRIs should not give in to sentiments or manipulative marketing while making a decision on buying property in India. For NRIs, the Indian real estate market definitely holds the highest possible investment potential. A healthy long-term investment horizon of seven to ten years should be maintained, as it is not advisable to buy on impulse