What Is The Best Way To Finance A House In India For An NRI?
There cannot be any one ‘Best way’ for an NRI to finance a house in India. Broadly the choice for the funding would be to either use ‘Own Funds’ or ‘Home Loans’ for the house purchase. Most banks today, offer home loans upto varying margins for home purchases in India. No doubt, the interest on home loans qualifies for tax deductions under the prescribed provisions of the Income-tax Act, 1961. However, NRIs should take into account their tax structure in India to make the maximum out of the available tax provisions. To sum it up, the best way to finance one’s house is to ascertain the liquidity position of the NRI, the budget for the house, the tax structure, and the end-use of the property in India among other factors.
