Buy rented properties in delhi 9899836806

8/7/2019 Buy rented properties in delhi 9899836806

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Investment Scenario - India

y 2 ways of investment in Real Estate & Housing sector

y Direct Route

y RBI Approval Route or Alternate Route


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Direct Route of Investment in Real

Estate & Housing Sector - 1

y What does this mean :

y No approvals required

y Indian company can well receive funds from their foreign

partner th

rough

proper banking ch

annelsy Who is allowed :

y Only NRIs (Non resident Indians) are allowed to invest upto

100% in the real estate & housing project

y

Pls refer pg 6 of presentation for alternate means of investmentand fully legal


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y What is the definition of Real Estate & Housing Project underlegal parlance :y Development of serviced plots and construction of built up residential

premises

y Investment in real estate covering construction of residential andcommercial premises incl business centres and offices

y Development of townships

y City & regional level urban infrastructure facilities, incl both roads & bridges

y Investment in manufacture of building materials

y Investment in participatory Ventures in a & c above

y Invetsment in Housing Finance Institutions which is also opened to FDI(Foreign Direct Investment) & NBFC (Non Banking Finance Co)


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y What is the definition of Real Estate & Housing Project underlegal parlance :y Development of serviced plots and construction of built up residential

premises

y Investment in real estate covering construction of residential andcommercial premises incl business centres and offices

y Development of townships

y City & regional level urban infrastructure facilities, incl both roads & bridges

y Investment in manufacture of building materials

y Investment in participatory Ventures in a & c above

y Investment in Housing Finance Institutions which is also opened to FDI(Foreign Direct Investment) & NBFC (Non Banking Finance Co)


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Estate & Housing Sector - 4 Under recent guidelines in 2006 (further to IEM Regulations

2005 dt 19-7-2005), 100% of FDI is allowed under Townships,Housing, builtup infrastructure and construction developmentprojects. The sector would include but not restricted tohousing, commercial premises, hotel, resorts. Hospitals,

educational institutions, recreational facilities, city and regionallevel infrastructures SUBJECT to following guidelines :

Min area to be developed under each project shall be as below : Development of serviced housing plots 5 Ha Construction Development project 50000 sq Mtr In case of combination, any one of the above 2 conditions


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The investment shall be subject to following conditions :

Min capitalisation ofUSD 10 mil for wholly owned subsidiary and

USD 5 mil for JV with Indian Partners. The funds would have to be

brought in within 6 months of commencement of business of the

company

Original investment can not be repatriated before a period of 3 years

from completion of min capitalisation. However, investor may be

permitted to exit earlier with prior approval of Govt through FIPB

(Foreign Investment promotion Board)


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Alternate Route of Investment in Real

Estate & Housing Sector-1

y To have humble beginning in the real estate & housing sector; wepropose the following proposal y A Foreign investor can become a shareholder in an Indian co specifically

formed for working in real estate sector

y Equity of foreign investor may be from 51% to 74%

y For becoming equity partner, single window clearance from RBI is reqdwherein detailed project shall have to be submitted with basic details(normal time consumed for approval is max 2 months)

y No min cap on the investment from foreign investor (it shall be Projectspecific)

yFunds transfer for purchasing equity through banking channels

y Remittance to Foreign director under regular dividend remittance routethrough RBI approval


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Benefits of our proposal :

No min cap on investment : Even USD 1 mil can be invested

To experience Indian Real estate market

Proper documentation of funds transferred through banking channels

& complete accounting/accountability

Various smaller size project opportunities may be tapped like

conversion of underdeveloped/developed industrial plots in NCR

(national capital region) into offices for IT/ITES or big export houses


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Fall outs of our proposal : RBI approval for inward & outward remittances

Project can be started only once funds are received

Real Estate business is high return & high risk and prone to various economic

factors

Our plans to overcome fall outs : Lawyer & Chartered accountant to be hired specifically for the RBI approval &

documentation

RBI approval to be applied well in advance with basic project reports & even

the prior investment may done by Indian co. after scenario analysis

Investment in Housing sector may be avoided upto Oct,07 as little slowdown

whereas industrial & commercial sector may be tapped for regular better

returns


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ConclusionNRI permitted to freely invest in real estate

RBI approval reqd. for smaller investments by foreign investors

but in normal conditions it may be through

Inward & outward remittance of funds may be through proper

banking channels

Indian real-estate sector is all set to grow drastically in next 10-

15 years & you may partner us in benefitting alongwith the

growth


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Documents

Buy rented properties in delhi 9899836806