Things to know for NRIs buying a property in India

August 5, 2017

In India, real estate investment can bring great boons! For generations, some cities have never failed to help investors make millions.

It is an arduous and hectic task for even residents to purchase a property in India, what do we say about the Non-residents. There is a slight difference between the two when it comes to real estate.
So, If you are an NRI and are looking forward to buying a property in India. This piece is specifically written for you.
Here we have provided a detail of every little aspect you need to know about NRI property investment in India.
being baffling and a critical, the whole process creates such an ire and uncertainties.
It is intrinsic to understand the basics, even if you are having a good real estate consultant.

Here are the top 5 dimensions which NRIs should be knowing before investing in Indian Real Estate:

1. Approval:

Reserve bank of India under Foreign investment exchange management Act, approves the purchasing of property by Non-Residential Indians in India. However, a special permission from the RBI is required if you are getting a plantation, farm, or agricultural property.
This is a general permission which grants acquisition of only residential and commercial properties.
Plus, there is no restriction on the number of properties that have been bought!
Now, for this matter, it is recommended that you hire an experienced and eminent real estate consultant and broker.

2. Currency:

All the transactions made need to be in Indian Currency. Traveler’s cheque or any other mode of payment won’t be accepted, or even foreign currency.
This is a very crucial point to know while making the purchase, so make sure that the payment you make in buying the Indian property is in Indian Rupee.

3. Taxes:

Taxes are only applicable on what the property generates and on nothing else. For instance, the tax would be applicable on the rent that the property garners for the owner.
If we speak of selling the same property, there is a tax ofd20.6% on the long-term capital gains whilst 30.6% on short terms. so, we recommend the buyer to stay invested in the property for more than 3 years to get best benefits out of it.
To know more you can always contact us, we will be more than happy to help.

4. Home Loans:

NRIs are eligible to take loans from the Financing companies who are registered with National Housing Bank.
The loan will be given in Indian Rupee and so should be made the returns. The EMIs and payments are required to be made in our currency.
home Loans have no other specific rule that requires being followed by the Non-Residential Indian.

5. Power of Attorney:

Any Relative or Friend can be given the power of attorney. Residing in a foreign nation, at times it might not be possible for the Non-Residential Indian to be present to complete all the formalities real estate deal cost. The person acts as a signatory, in their absence.
And, this power is assigned in the presence of a notary officer who attests the document.

6. Know the best places to invest:

Now, the last but not the least, to make worth of your investment, you need to invest in a city with huge growth potential. Mumbai tops the list in this for many reasons.
And, be aware of all the fraudsters out there.

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