impact of rupee fall on real estate=view points

[msn1270]

Plotguy,

RBI has given permission for investments in Real Estate for NRI Indians. So its a legal transaction.

When the Buyer has a NRE/NRO Account, they can pay in Rupees. Else, the buyer will pay in Dollars to the seller account at directly & the developers gets the money in terms of Rupees. In between Banks will make good commission & then convert the Dollar into Rupees to the seller's account at the rate of that Day's Forex Value. Moreover Developer or say any businessman can send the Quote either in Rupees or in Dollars for any overseas transaction. If he gets the Money in Rupees, then Both Buyer & Seller has to pay all the statutory taxes to the Central & State Governments. If the transaction is in Dollars, they get exempted from paying the local statutory taxes.

So when the developer proposes only in Dollars, its a loss for the investor/also for the state exchequor. Even the buyer gets excited & agrees, as he can save the additional charges by paying in Dollars.

[PlotGuy]

msn1270 - I did not know about this. I stand corrected.

jpnagarprop - NRI's investing in India actually increases the demand for rupees. So limiting the demand for rupees in anyway has a detrimental effect.