Investing in Real Estate (India) has always been a lucrative investment option for Non Resident Indians (NRIs). NRIs have always been opportunistic in terms of investment possibilities and returns. The Indian government regularly comes up with new schemes to attract more and more investments in Real Estate (India) from abroad. Real Estate is one of the sectors, which always grabs the attention of Non Resident Indians. Moreover buying a property in one’s home country always has its own advantages. Occasions like weddings, anniversaries or a misfortune, may want them to visit their homeland to keep the Indian connection alive.
MumbaiResidentialProperties.com is there to assist NRI customers who want to buy/sell/rent/lease/invest in a property in India (Mumbai). India’s Real Estate growth prospect attracts investors from all parts of the world and especially NRIs. Here are a few steps that should be followed by an NRI for Buying a Property;
Proof Of Eligibility:
If you are an NRI and are looking for investing in a property in India, you should obtain a Person of Indian Origin (PIO) certificate as an eligibility proof. In case you do not have your PIO certificate, you can always produce your mother’s/father’s birth certificate for the eligibility. However, these documents should be submitted to the Indian embassy of that particular country.
The Exchange Control Regulations:
An NRI can easily buy a property with the funds received from regular banking. An NRI can also hold a Foreign Currency Non Resident FCNR account, Non Resident External (NRE) account or a Non Resident Ordinary (NRO) account to make a property purchase. An NRE account is required for the payouts and an NRO account is required for the depositing and the transferring of money.
Repatriation:
Once the relevant income tax and capital gains at the time of sale proceedings are deducted from the account, one can repatriate the funds from the NRE account to the Foreign account.
Renting A Property:
Incase an NRI wishes to rent out their property in India, he/she definitely can do so however the rental income or the profit which is made as returns from the property will be eligible for taxation.
Selling A Property:
If an NRI owns a property in India and wants to sell it, he/she can sell it to another NRI or any person residing in India who is free from any legal issues. However, the purchase or sale of a farmhouse or other agricultural land is not permitted, but gifting of an agricultural land or a farmhouse or a plantation land is permitted only to a resident of India.
The Power Of Attorney:
An NRI should give the power of attorney to an Indian resident who is trust worthy. In case the NRI is not present in India for the legal formalities to be done, the trusted person can complete all the formalities on his/her behalf.
The Home Loan:
An NRI can avail a home loan in India for the purchase of a property. A home loan of about 85-90 per cent can be taken and further the loan will be disbursed to him/her at the time of buying a property. According to the regulations of FEMA (Foreign Exchange Management Act) and RBI (Reserve Bank Of India), an NRI is permitted to make specific investments in Real Estate. An NRI is allowed to do the following realty investments:
- Any immovable property can be purchased by an NRI in India other than any agricultural land, farm house and plantation property.
- He can get any immovable property as mentioned above by gift from an Indian resident, Indian citizen residing outside India or a person of Indian origin.
- He can obtain any property by inheritance.
- He can transfer immovable property to any resident of India by sale.
- He can transfer any agricultural land, farmhouse or plantation land to any resident of India by gift.
- He can also transfer his residential or commercial property by means of gift to
any person either residing in India or abroad or a person of Indian origin.
Points To Be Considered At The Time Of Purchase:
When investing in Real Estate one should be cautious enough at the time of purchase to secure the deal. Few points to be considered are:
Property Name: The name of the property should be clear from issues and the seller should have the right to sell it, especially if it is an inherited or any joint property.
NDC: One must always check that there is no outstanding electricity/water bills or any other dues pending with the property. Take a no dues certificate from the seller at the time of purchase. Bank Release Letter: It is advisable to take the bank release letter from the
concerned bank, if the property had been mortgaged as security in any type of loan. MumbaiResidentialProperties.com is an online property portal that displays various Real Estate Investment options in India – Mumbai. We also assist our NRI clients with their Real Estate investment requirements in India