Very often we may found that every year many Indians are relocating to different countries for their job, higher education and other purposes. And hence, we can call them an NRI (Non-residential Indian). But it is also true that most of these expatriates are very well-connected with their home country and even, most of them often try to come back to their homeland after completion of their work or studies. As a result, most emigrants want to purchase some property in their home country so that they can spend their rest of life in their motherland contentedly and happily. You can check out Things to consider when planning for a Retirement Home.
Though in earlier days, buying property in India was a very complicated process for an NRI or PIO (Person of Indian origin) but now, the Indian government and Indian laws have become much pliable for these NRIs. The government now warmly welcoming these expatriates so that they can easily invest in an Indian property and can fulfill their dreams.
But you, as an NRI or PIO, need to know all the rules and regulations and the legal procedure for this property investment so that in future you don’t need to face any intricate or unfavorable situation. Here are some top 10 tips for buying your first investment property .
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According to the Reserve Bank of India, any NRI or PIO person who holds an Indian passport and temporarily immigrates to other countries for work, education or any other purposes is eligible to purchase any immovable property in India.
According to the Reserve Bank of India, an NRI or PIO person is eligible for purchasing any kind of residential or commercial property according to his or her choice. But an NRI or PIO person cannot purchase an agricultural land, plantation and a farm house in India. Not only that, they are neither eligible to hold such type of property as a gift or not allowed to inherit such type of properties. You can check out the benefits of investing in Commercial property
But an OCI person (foreign nationality but might have been eligible to become an Indian citizen) can purchase any kind of immovable property like a house, commercial space, apartment, land, plantation and even a farmhouse.
Below, we are mentioning certain documents that you need to submit as an NRI or PIO or OCI. Without these documents, you won’t be able to accomplish this purchasing process.
1. Your address or residential proof
2. Your Passport
3. Your photographs (passport size)
4. Your pan card (with permanent account number)
5. Your OCI or PIO card (if you are an OCI or PIO person)
The Reserve Bank of India has already given a green signal to all the banks and other registered finance companies to provide loans to the NRI buyers for purchasing their property in India. Though the loan can be sanctioned in the Indian currency, and the lender needs to repay it by same currency. But the loan amount cannot be credited to the NRI customer’s account rather it must be disbursed either the seller or the developer’s account. The NRI customer can use his NRO or NRE accounts for reimbursing the amount. The bank can pay maximum (80% of the purchased amount), the loan applier needs to pay the rest amount.
Repatriation usually means the flow of funds or capital from a foreign country to the country of origin (here the country of origin will be India). In this case, an NRI or PIO person can easily transfer his repatriable funds to India in order to purchase some properties in the Indian market. They can easily use their repatriable capital to complete the purchasing process. But it has to remember that all payments should be made in Indian currency.
As NRI person lives outside the country, so he is eligible to give Power of Attorney (PoA) to his relatives or friends who live in India so that they can easily accomplish the whole purchase process smoothly and successfully. You can check out finding out your power of attorney is powerless .
Tax laws are very simpler for NRIs. According to the rules that are set by the Government of India, NRIs, PIOs and OCIs don’t need to pay any taxes when they are purchasing a property in India. They only need to pay stamp duty and registration fees like all other citizens of India. But if they are planning to sell their property, then they need to pay either long term or short term Capital Gains Tax. Here are some 11 things to be followed to get better return from selling the property
A property agent or buyer’s agent is a person who can easily bridge the gap between a buyer (you) and his/her(your) property. A property agent usually works closely with you in all relevant steps of a buying or purchasing a property. Buyer’s agents (often known as ‘buyer’s advocates’) are licensed persons who have some immense knowledge in searching, evaluating and negotiating the purchase of property and moreover, they have all the skills and experience which help them to work on behalf of the buyers.
They have a wide accessibility: It is found in many cases that; most of the property agents have access to a wider range of properties which may not be even advertised by the companies or the builders. By using their own network, they will help you to get the best property where you can invest. Here are some tips for profitable real estate investment .
Time-saving- Since you are an NRI or PIO person who don’t have a profound knowledge in the Indian real estate market and hence, you are taking help from some professionals who are expertise in this domain. With their expertise, they will help you to accomplish the whole process of purchasing property within a very short span. In this way, you can save your valuable time and energy.
Let’s take a look how a property agent can help you in purchasing a property? Click on property document checklist to get more details on property management.
A property agent can assist you in every step of purchasing a property. They provide you with the below mentioned services:
1. They jot down all the property sources and make a shortlist of the most suitable ones.
2. They also suggest whether the property requires an inspection process or not and also provide the contacts.
3. Calculate and provide an accurate summation of the property’s worth.
4. Make a contract and other relevant documents which are reviewed by a professional or expert.
5. Assist you in making the Power of Attorney.
6. They do the negotiation for most of the beneficial deposit and other settlement terms for your requirements.
7. On behalf of you, they negotiate for a private sale.
8. In an auction, they bid on behalf of you for sale
9. If required, then they also do negotiation access to the property before settlement
10. At the final inspection, they also accompany you.
There are many companies like Nrihomes, Aximestates, Nrirealtors, Nriinternet, Qdevelopers which are stuffed with some renowned and competent real estate agents who are ardently guiding NRI customers in their property dealing process. So, if you want an experienced and adroit property agent, then you may contact with these companies so that you can accomplish a hassle-free property investment. Have a look at the 5 questions your real estate agent needs to answer.
Some companies like Infradoctor, Commonfloor, Nriinvestindia, Qdevelopers help the sellers to find NRI buyers like you for both residential and commercial properties.
Below, we are mentioning some popular websites that are unwaveringly serving NRIs, PIOs and OCIs customers who are willing to invest in a property (house, condos, flat, villas, offices etc.). With their experience in Indian real estate sectors, these websites are trying to assist NRIs in every step of property purchasing.
1. Nriinvestindia.com
2. Nrihomes.com
3. Nriindiaservices.com
4. Commonfloor.com
Apart from websites, there are many forums which are also helping NRI customers to find their desired property in the Indian market. Indianrealestateboard.com, Indianrealestateforum.com are some of the appreciated and applauded forums where an NRI person can easily participate in different discussions, post their requirements, chat with other members etc. If an NRI person can register himself with any of an NRI real estate forum, then he will get more benefits from these forums.
Real estate sector in India is thriving hastily. Hence, we may find many real estate companies are growing in every nook and corner of India. There are many eminent real estate companies in India like Amrapali group, Experion where an NRI can easily invest their money. These companies are usually developed both residential and commercial properties which are capable enough to entice NRI customers towards them. But before investing in any real estate company, it is advisable that the NRI person should check thoroughly the each and every detail that are provided by the company. Moreover, don’t forget to verify the company’s market reputation before spending a single penny on it.
So, all the above-mentioned information will certainly help you, as an NRI to purchase a property in India. Hope, this information will help you to know what you need to do if you are planning to invest in the real estate market in India.
Q Developers is one of the top builders in Calicut (Kozhikode), offering a luxurious life style to customers by providing luxury villas in Calicut without compromising in standards. Be a part of Q Developers and live in your dream home.
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