By Accommodation Times News Service
Despite a current account deficit, Indians have been allowed to send money abroad since 2004 under the Liberalized Remittance Scheme.
Those looking to buy property in overseas destinations like Dubai will have less headroom to consolidate remittances from family members. The RBI has said that a property purchased overseas has to be in the name of all the members who are making the remittance.
Despite a current account deficit, Indians have been allowed to send money abroad since 2004 under the Liberalized Remittance Scheme. The limits have been raised over the years from $25,000 annually to $2,50,000 a year now and individuals are allowed to do almost anything with the money, including buying immovable property, shares or simply gifting them to foreigners.
Brokers have been marketing apartments in international destinations like Dubai, Singapore, London and New York, citing high rentals as an investment opportunity. The annual limit of $2, 50,000 translates into Rs 1.67crore per annum for an individual.
Since the scheme was available to all residents, including minors, brokers were advising buyers to pool resources.