Dilzer Consultants - Investments and Financial Planning

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Investors should always keep in mind that the most important metric is not the returns achieved but the returns weighed against the risks incurred. Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.

~ Seth Klarman

Dilshad is by far, amongst the best investment consultant and advisor I have met. Extremely competent, well -informed, transparent and customer-need focussed, her interaction style makes all the difference.

Dilshad has the rare ability to assess the perfect mix of investment options depending on each individual requirement and vision, all with a professional yet friendly approach.

I would recommend Dilshad's services to anyone who is seeking sensible, well- informed investment advice while enjoying the benefits of being serviced by a super efficient and adaptive thinking investment consultant whose prime focus is in ensuring growth, stability, and relevancy for your investment mix.

~ Suraj Hattangadi

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NRIs Buying Real Estate In India

If you are a non-resident Indian (NRI) planning to buy a property in India, time could not have been better for you to do so. While India’s real estate sector has seen a price correction in the recent past, buying property in Indian has also become more lucrative with favourable currency rates.

 India has emerged as a lucrative spot for international capital. Overseas investments have surged 137 per cent, from USD 3.2 billion during 2011-13 to USD 7.6 billion during 2014-16. According to a survey, almost 30 per cent of the total global real estate transactions in India, will be cross-border.

NRIs have a variety of investment options in India. But real estate still remains to be one of their favourite options, not just because of high returns but also because of nostalgic attachment and the dream to come back to a safe and world-class retired life in their homeland.

In addition, many NRIs are also interested in several Indian metros considering high growth prospective of the real estate segment in the country having attractive options including apartments, villas, plots and pent houses with world-class facilities.

As per RBI an NRI is “ A ‘Non­ Resident Indian’ (NRI) is a person resident outside India who is a citizen of India.”

And POI  is – A ‘Person of Indian Origin (PIO)’ is a person resident outside India who is a citizen of any country other than Bangladesh or Pakistan or such other country as may be specified by the Central Government, A PIO will include an ‘Overseas Citizen of India’ cardholder.

What can be bought :

Though RBI has given general permission to the NRIs to purchase immovable properties in India, the permission does not grant power to acquire any and every property in India. The NRIs are allowed to purchase only residential or commercial property. So NRIs cannot purchase any agricultural land or plantation property. Since it is fashionable to own a farmhouse, be clear that under the existing dispensations, NRIs cannot purchase a farmhouse in India.

This way as long as the investment being made by NRIs in India is either in residential property or commercial property, they are not even required to intimate RBI about such purchases, even post conclusion of the transaction. Moreover there is no restriction as to the number of residential or commercial property an NRI can acquire.

How to fund it:

 The payment can’t be made in foreign currency. NRIs can make the purchase using Indian currency, the Rupee, through funds received in the country by means of normal banking channels. These funds have to be maintained in a non-resident account under the foreign Exchange management Act (FEMA) and the Reserve Bank of India (RBI) regulations. 

The payment for purchase of permitted property by an NRI can be made by way of remittance through banking channels from abroad or from money lying in their NRE/NRO or FCNR account. NRIs are even allowed to finance the purchase with home loan in Indian Rupees. The home loan can be granted by the Indian employer of the NRI employee for the purpose of financing of the property.

As far as payments of EMI for the home loan taken in Indian Currency in India is concerned, the same can be done either by direct remittance from abroad or from the money lying to the credit in NRE/NRO/FCNR account of the NRI.  In addition to the above sources, the home loan can even be serviced out of the rents received from such property or money transferred to borrowers account from the account of relatives of such borrower.

In case the NRI is buying the property for the purpose of his own residence, the NRI can even take loan against deposits lying in their FCNR or NRE account upto an amount of Rs. 100 lacs for the purpose of servicing the home loan.

Legal Ownership

  1. The property to be purchased by an NRI can either be purchased in single name or jointly with any other NRI. It may be noted that that a resident Indian or a person who is otherwise not allowed to invest in the property in India cannot even be made a joint owner in such property though the second named person might not even be contributing any money towards the property
  2. A person who owns a property when he becomes an NRI can continue to hold the property in his name. It is interesting to note here that such resident Indian becoming an NRI is even allowed to continue to own agricultural land, plantation property or farm house which he is otherwise not allowed to purchase after becoming NRI
  3. An NRI is even allowed to get the money sent back outside India after appropriate taxes have been paid in India from rent so received.
  4. As they live outside, NRIs have an option to give PoA to their friends or relatives to complete the property purchase process in India. The PoA can be general or specific about the rights your representative can exercise.
  5. Documents required at the time of registration:
    1. Pan card (Permanent account number) if any
    2. OCI/PIO card (Overseas Citizenship of India/ Persons of Indian Origin)
    3. Passport
    4. Passport size photographs
    5. Address proof
    6. Registered power of attorney (if you are not physically present at the register office)
    7. Title Deed (in the name of the seller)
    8. Prior Title Deeds (of last 15 years)
    9. Latest Tax Receipts (land and building if any)
    10. Updated Encumbrance Certificate (covering last 15 years)
    11. Approved Plan
    12. Building permit / Notice Of Commencement (from corporation, municipality or panchayat, if you are purchasing a house / apartment

Taxation woes?

Not really !

When an NRI sells a property in India, TDS (tax deducted at source) calculation is done at the rate of 20.6 per cent on long-term capital gains and 30.9 per cent on short-term capital gains. However, the final taxation rate is similar for NRIs and resident Indians. If an NRI has a lower tax slab applicable to him, he can apply for a refund of the TDS by filing their income tax return.

Repatriation of funds back to the foreign country

There are certain guidelines for repatriation of funds. An NRI or Person of Indian origin (PIO) may repatriate the proceeds from the sale of immovable property in India on the conditions mentioned below:

  1. The property must have been purchased in accordance with the FEMA directives, applicable at the time of purchase. 
  2. The amount repatriated cannot exceed the original amount paid for the property, if the property was acquired in foreign exchange remitted through normal banking channels or out of funds held in an FCNR (B) account.
  3. However, in the following circumstances, the NRI/PIO may repatriate a maximum of $ 1 million per financial year:
  4. Out of the balance held in the NRO account, if the property was purchased out of rupee source of funds. 
  5. If the property was acquired by way of gift, sale proceeds must be credited to an NRO account and may be repatriated thereafter. 
  6. If the property was inherited from a resident Indian, funds may be repatriated on producing a documentary evidence proving inheritance, an undertaking by the NRI/PIO, and a certificate of an authorised chartered accountant in the formats prescribed by the Central Board of Direct Taxes (CBDT).
  7. In the case of a residential property, repatriation of sale proceeds is restricted to less than or equal to two properties.
  8. A foreign national may repatriate sale proceeds even if the property was inherited from a person outside India. However, prior approval of the RBI must be obtained. 

A citizen of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan and Iran must seek specific approval from the RBI for repatriation of sale proceeds.

Apart from the above-mentioned points, an NRI is given the same treatment as applicable to any other Indian resident.

Some general tips –

NRI investors should avoid projects by unknown developers. Numerous buyers have fallen into difficulty, by putting their funds in projects that lacked mandatory clearances and fell short of even the minimum standards of quality.

Plan your  visit to India and evaluate projects, opt only for reputed developers. In all cases, NRIs should strictly verify points, such as the track record and brand visibility of the developer, the social and civic infrastructure available in the location, the amenities in the project and the timelines for possession, in the case of under-construction projects.

A project that is targeted towards NRIs, is no different from other offerings in the market. A property should be evaluated, purely on the basis of its location and amenities on offer, the legal validity of its title and the developer’s brand image.

 Besides exercising necessary due diligence, NRIs also need to adhere to certain specific laws and regulations, while buying, selling, or renting out real estate in India

 

Sneha Ramamurthy

Dilzer Consultants Pvt Ltd.

 

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Testimonials

\"Dilshad is an expert financial planner who has an eye for detail and is very personable. She take meticulous care of the requirements and is extremely competent in her financial planning skill. Having known her for the last ten years I have no hesitation in recommending her and her team at all.\"...
\"I have known Dilshad for over 7 years and has been managing my investments and providing finacial advice to me. She is extremely thorough in her work and understands the clients requirement very well before giving advice. She is very well informed on her subject and provides service very appropriat...
\"Dilshad has been extremely watchful about my investment portfolio into MFs and has always been recommending necessary changes only if and when needed, in my best interest. Extremely dedicated and self driven to help safe-guard the interests of her clients. Very professional in her work.\"\nNovember 3...
Dilshad is a committed professional who works with her clients to help them meet their goals. Her investment in improving her skill sets to service her clients better gives one the confidence of being in good and safe hands. She has her ears to the ground and provides sound and balanced advise to he...
\"Dilshad is a meticulous, diligent and highly efficient Financial Planner. She is extremely knowledgable about all financial aspects and developments. The service she has provided us has been consistently good and useful. It also helps that she is easily accessable for any query.\"...
“Trusting one\'s investments with a financial planner is always a tricky choice - My investment choices were haphazard - to say the least - till I met Dilshad. Over last 5+ years, I have received a candid advise from her She is mild mannered - but well read in her field of business. Very sensitive ...
\"I know Dilshad for over 11 years and she is the one who is guiding me in all my financial investments. Her versatility about the market gives her that competitive edge... I would say she is very genuine...thinks in line with the client requirement…approaches the business in a very professional wa...
“Dilshad is by far, amongst the best investment consultant and advisor I have met. Extremely competent, well -informed, transparent and customer-need focussed, her interaction style makes all the difference. Dilshad has the rare ability to assess the perfect mix of investment options depending on ...
Dilshad is a brilliant professional. Her promptness at expediting work issues is worth recommending. I would recommend her professionalism to whoever appreciates hard work with intelligent knowledge at financial planning.\r\n\r\nFebruary 20, 2013, Firdaus was Dilshad\'s client\r\n\r\nAircraft Maintenance Eng...
“Dilshad has a very proactive approach. Her calm and soft demeanor is definitely an asset. I would definitely recommend her for her business sense and other valuable attributes.”...
\"Dilshad has a good understanding of the markets, and her recommendations are pragmatic, reasonably safe, and I always get the feeling that they are what she would do herself. Her office has been extremely supportive of the follow-throughs with different Financial Institutions. I think at the end of...
“I have been investing with Dilshad for well over 5 years now. My experience suggests that Dilshad is a very good financial advisor for people with long term investing aspirations and very little time to investigate Mutual Funds, track them & do other associated paperwork. Every fund recommend...
\"Dilshad has always given great advice. she is very professional and on time. She always talks sense. would recommend her to anyone.\"\r\nService Category: Finacial Advisor\r\nYear first hired: 2005 (hired more than once)\r\nTop Qualities: Expert, Good Value, High Integrity...
“I know Dilshad professionally (my financial advisor ) for the past 6 years. I always trust her recommendations and instincts.”...
For over a decade now Dilshad has been my Investment Consultant guiding me on my investments, especially Mutual Funds. I have followed her sound advice and acted on her timely inputs provided thru regular updates, alerts and newsletters and watched my investments grow at a steady and healthy pace. S...
\"Dilshad has been handling my financial planning for a few years now. I find that she brings in the right blend of professionalism, interest in my well-being and financial health to the job. She made it a point, over many discussion, to understand my goals, my status and requirements without being a...
“Dilshad is a thorough Professional. She has a good knowledge of the market. Advises suitably for one\'s financial investments. She has been a very good help in my Financial Planning.”...
\"Dilshad has been our family financial advisor for several years now – and we have been satisfied clients\nHer detailed retirement planning has been valuable in understanding investing for long term.\nWe’ve also benefited from her advice on diversifying investments across various categories.\nDilsh...
Dilshad is an excellent financial planner - I appreciate the personalised attention, she\'s always available to assist and explain the finer points of planning that I often miss. I also appreciate the frequent information she gives us through mailers. Helps make informed choices.  Thanks Dilshad!...
\"Dilshad is a sincere, hard working lady, who gives great importance to my queries, helps me out in my financial planning, thereby give good valuable advise in my finance managment\"...
We have used Dilshad\'s services over the last one year and have been very happy with the outcomes. I have found her to be very professional and thorough in her approach, she makes time to fully explain the details when ever I have had any questions or needed clarity on any of her recommendations. Sh...
I had done a few planning exercises in the past, where the consultant had taken my inputs on my goals and the timelines. This was the first time that the the data gathering exercise was so comprehensive. Just going through the process forced me to clear my thinking about my objectives, and also brou...
Dilshad is a through professional and a true leader in her field of financial consulting. I have been working with her last 5 years and truly impressed with her depth of knowledge both for mutual funds and investment market at a macro level. She meticulously works with her clients to help them move ...
It was nice meeting you today regarding the discussion we had. Your suggestions had helped us to see the things in a better way through all the clutter and has made it easier for us to take certain decisions. We really appreciate your approach of listening to your clients, guiding them towards thei...
“Dilshad is intelligent,highly focused,to the point and always ahead of time in term of her financial advisory and makes your feel involved & comfortable to take decisions with her elegant charm & personality. She always stands by you & facilitates right decisions with her pulse of mar...
\"I have been taking her support in Financial services in Mutual funds and Insurance for the last 13 years. She has responded very well to my needs and taken good care of the investments.She is so good that I continue to use her support.\"...
\"I have known Dilshad since 1984 through his father who was not only professionally connected, but also we lived as neighbors. Dilshad has been a brilliant person right from her school/college days. She has been carrying out the Financial Advisory Service assignment that she took after her studies i...
I would like to express my appreciation for the thoughtful financial guidance I received from you. As a military family pensioner, I was not sure how to allocate my pension fund for my needs. Your sound advice eased my anxiety by clarifying my financial position with regard to my savings, expenses a...
“I am yet to come across a more thorough professional thatn Dilshad....and her knowledge of the financial markets is exceptional. Her insights are valuable, and she makes sure that your money is treated the same way as she would treat hers....
“Dilshad is a very knowledgeable and talented financial adviser. Dilshad offered wonderful personalized financial investment advise and assistance. She guided me whenever I called her with a financial problem. Shares, insurance, mutual funds, and whatever financial product it may be, she will be t...
I have known Dilshad since 1984 through his father who was not only professionally connected, but also we lived as neighbors.\n\nDilshad has been a brilliant person right from her school/college days. She has been carrying out the Financial Advisory Service assignment that she took after her studies i...

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