My NRI friend Deepika who had been staying in the USA for the past 13 years is finally coming back to India to spend her golden years here. The decision is a mix of emotional and practical reasons. Of course the States was better than India in a lot of aspects and she also had community support of fellow Indians there but according to her it never felt like home. She has jointly bought a residential property in India with her brother as NRIs are allowed to jointly buy properties with residents. She has taken a loan to build a house on it and given PoA to her brother who is overseeing all the tasks while she completes her formality to shift back permanently.
NRIs may leave their country for occupation or vocation but the country never leaves their hearts or minds. Therefore they invest in their homeland so that they have some financial connection with it and their family who maybe still living there.
Below are some reasons as to why NRIs invest in India:
1. For building a foundation for retirement and financial security for current and future use.
2. Utilise savings to invest and grow the financial portfolio.
3. To flow the money back to relatives in home country.
Best Investment options for NRIs in India as follows:
Bank Fixed Deposits: This is the most common mode of investing by NRIs because banks provide high interest rates on the fixed deposits. Three different types of accounts can be opened in India i.e. NRE, NRO and FCNR accounts in a bank which is authorised to deal in foreign exchange.
2. Mutual Fund: To invest in Mutual funds, an NRI needs to have any of the 3 bank accounts i.e. NRE/NRO or FCNR account and the investment has to be made in Indian currency only. But some countries don’t allow NRIs to invest in mutual funds in India.
3. Real Estate: Investment in property in India is a traditional and favourite investment tool for most NRIs. Having a home or property back in your own country is considered as a practical and valuable possession. In addition to financial appreciation, it also gives a sense of emotional security.
4. Direct Equity: NRIs can also invest directly in the Indian stock market under the Portfolio Investment scheme (PINS) of RBI. 10% of paid up capital of the Indian company is the maximum investment allowed for NRIs. One would need a Demat account and a brokerage account with a SEBI registered brokerage firm. An NRI can transact only through a stock broker.
5. Investment in Bonds/Govt. Securities: An NRI has the freedom to invest in bonds and government securities. One gets fixed returns on such bonds and if purchase is done through NRE/FCNR accounts, the proceeds are easily repatriable to the country where one lives.
6. Certificate of Deposits: Certificate of Deposits are also available to NRIs on a repatriable basis. These are non negotiable money market instruments issued in the demat form or as promissory notes. It yields a higher rate of interest than bank deposits and the maturity period ranges from 7 days to 1 year. Best suited for investors with short term financial goals.
7. National Pension Scheme (NPS): NRIs between the ages of 18-65 years who are Indian citizens or have dual citizenship can contribute to this scheme by fund transfers from their NRE/NRO accounts.
A great option in real estate that senior NRIs are investing in nowadays are luxurious retirement homes, a concept gaining momentum in India. It serves both as a long term investment and residence in the twilight years. It’s a very good opportunity for NRI investors considering they invest in a reputed builder’s project after doing ample research.
According to statistics, almost 62% of senior citizens living overseas stated that they would like to settle in India after retirement, even if their children planned to settle abroad. A survey conducted by Moneycontrol.com lists out the main reasons why NRIs want to settle in India and look for lifestyle-driven senior housing:
1. 38% prefer familiarity of their hometown in their golden days
2. 36% refer to poor quality of life abroad
3. 26% refer to personal reasons
The first half of an individual’s life is spent getting a good education and making a stable career to fulfill financial and emotional responsibilities. One doesn’t always get time to pursue hobbies and passions. Hence, a person’s golden years are the perfect time to pursue those dreams because responsibilities have been fulfilled and one finally has ample time and energy to focus on individual needs and goals. Builders are tapping into the niche market of senior living homes that cater to the needs of senior citizens and offering them homes accompanied with all luxurious amenities. The number of senior citizens in India is likely to be doubled by the year 2030 (source: Economictimes.com). This statistic alone calls for a large retirement home market which can reap rich dividends for both domestic as well as NRI investors.
Senior living homes are the perfect place to spend one’s twilight years. It is filled with enriching activities, contemporaries to share memories with and uber class ageing related facilities like tie-ups with medical establishments, meeting food and nutritional needs and an infrastructural design that suits senior citizens. It is a personal space which one can decorate and beautify in their own unique style. Residents can host their family and spend as much quality time with them as they want. These changes are made to reflect changing times where age doesn’t mean giving up on life, but on the contrary living an independent luxurious life to the fullest. Reports suggest that demand for retirement units has exceeded 3 lac units. Options are available for every pocket with unit sizes varying from 300 sq ft to 2500 sq ft. basic apartment costs upto 33 lcs while a mid-sized one can cost 50-60 lacs. Luxury villas are also available for the uber rich costing 1 crore and above. Monthly service charges start from 5K INR and can go upto 50K INR based on services rendered.
Ashiana Housing is the pioneer in the retirement home market and has been awarded three times in a row for the same. The retirement home markets’s substantial growth has witnessed the entry of companies like Antara Senior Living, Tata Housing and few others. This gives NRI investors the option to choose their desired location and an opportunity to avail the facilities of the retirement home for personal use as well as for investment.
Points to take into consideration before investing in a retirement home:
1. Commitment of the builder: It’s important to see how many years the builder has been creating the senior living homes and how many seniors are enjoying life in their society.
2. Continuing Care Retirement Communities (CCRC) concept: Does the senior living provide CCRC, since as we age we would need an assisted living facility. Does the senior living community provides the CCRC facility or not becomes the critical area.read more
3. Security: It’s a major concern for senior citizens and their families. The society should have CCTV cameras at vantage points, sufficient guards for the premises and sufficient security measures should be in place for the residents’ safety.
4. Amenities: The project should have many avenues for pursuit of hobbies and passions. Facilities like swimming pools and courtyards for tennis, volleyball and other sports should be available. Recreational activities should be planned for seniors so that they’re always engaged and have an active and healthy lifestyle and a well maintained clubhouse where they can spend quality time with their peers.
After much searching and consideration, Deepika has zeroed in on Ashiana Nirmay, a senior living home in Bhiwadi. The decision to settle down permanently in Ashiana Nirmay, Bhiwadi was taken after considering the following points:
1. Ease of buying- Deepika came to know about Ashiana Nirmay from a friend who stays there. She got in touch with the Ashiana team and the rest of the details were taken care of by them very effectively. She even had a trial stay at one of the homes to know about the day-to-day functioning. The property was convenient from all aspects including amenities, safety, leisure activities, ambiance, accessibility etc. and hence she decided to shift there permanently.
2. Ease of payment- The booking payment can be done online and rest of the amount is paid through cheques. Maintenance charge can be paid online as well. The entire process was transparent and handled with great efficiency by the representatives.
3. Ease of maintenance- Since it is a senior living facility, everything has been constructed keeping in mind the convenience of the residents. Maintenance is taken care of by experts, even at short notice so that residents aren’t hassled.
4. Ease of resale and rental- In case Deepika changes her mind of shifting or stalls it for sometime, she can resale the property or put it on rent. The entire process of selecting buyers or tenants is handled by the team at Ashiana which is another positive aspect of choosing Ashiana.