Mumbai Investment - Any advice?

[Creative Source]

I am considering investing in Mumbai over the next few years as it seems to have an expanding economy, increasing middle class and the city limits are fairly set.
I was thinking about buying off plan and selling on completion and reinvesting with profits.
I am a UK citizen.
Has anyone had any experience with Mumbai. Are there any perils one should look out for? Any restrictions for foreign buyers or tax issues?
Given my analysis above of Mumbai, can one expect a year on year increase in prperty prices? How much discount is normally offered for an off plan development?

regards

CS

 

[High Rise]

I am considering investing in Mumbai over the next few years as it seems to have an expanding economy, increasing middle class and the city limits are fairly set.
I was thinking about buying off plan and selling on completion and reinvesting with profits.
I am a UK citizen.
Has anyone had any experience with Mumbai. Are there any perils one should look out for? Any restrictions for foreign buyers or tax issues?
Given my analysis above of Mumbai, can one expect a year on year increase in prperty prices? How much discount is normally offered for an off plan development?

regards

CS

Hi CS

If you are a Person of Indian Origin (PIO),then you can buy a property in India otherwise you cannot purchase property in India. Let me know if you qualify

 

[Creative Source]

No I am not a PIO. But my business partners are PIOs. Can we form a company with them as co-directors in order to invest in Mumbai?

CS

 

[High Rise]

Investing in Mumbai

No I am not a PIO. But my business partners are PIOs. Can we form a company with them as co-directors in order to invest in Mumbai?

CS

Hi CS
Sorry for the delayed response, was traveling and did not get an opportunity to check mails. Alright, if you form a company i.e. a Real Estate investment fund, then the source of funding will determine the criteria for investments as repatriation of profits will be involved. Check out formation of REIT's or Real Estate Funds. This forum does not allow links, but try the websites like RBI, SEBI in India. These may provide you additional details. For in-depth information you will need to consult a Chartered Accountant + Lawyer.

My suggestion If the amount is not very large, you may consider investing in the name of the PIO and sign an agreement between yourself and the PIO or PIO's as the case maybe since the tax on profits on companies, expenses of formation and running of the fund may not make it worth the returns.

Cheers.

 

[rackshack]

Apart from the laws if everything works for you there are many other options for you to initially invest a small amount in some other part of country and looking at profits you can target metros. There are few cities offering you profit hike of 30% to 50% in price within next 3 years.

 

[sandeepnair]

To Creative source

Thats a great plan of yours but unfortunately you must be an indian national to make a direct investment in mumbai. You can consult any realtors in mumbai to solve your problem.

Mumbai is a great place to invest in this rapidly expanding economy. you can choose between the downtown or the suburbs of mumbai as they will be the future large investments in Mumbai.
All The Best!!:tee:

 

[mrtmaster]

you can also make investment when you have a friend or someone who close to you,so you give power to them they invest

 

[High Rise]

Power of Attorney can be given in India by an Indian (NRI or otherwise) not by a foreign national.

you can also make investment when you have a friend or someone who close to you,so you give power to them they invest

 

[coordinates]

No I am not a PIO. But my business partners are PIOs. Can we form a company with them as co-directors in order to invest in Mumbai?

CS

If your business partners are PIO's then ask them to invest directly in Mumbai, and you can have up to 26% of direct foreign investment in that property.

 

[avinashjog]

Investing in Pune - Some Options

Hi,

Mumbai is getting very expensive as well as crowded. You can consider investing in Pune too since it is truly growing multi fold. Plus, the rate here is comparatively less and will increase faster.

 

[bryansmo12]

Investing in Mumbai is very good decision. Mumbai is growing very fast day by day, rates also very high.