NRIs need to cheer up as their long standing and wished demand of purchasing a property in India is getting easier, quicker and hassle free. Yes, the new rule states that the person possessing the Indian passport is free to purchase properties. Having said that, the specific property shouldn’t be an agriculture land though.
So, as a NRI, before you look forward towards purchasing properties in India, here are few considerations which you need to follow for a smooth transaction away from any hiccups, issues and turmoil. The post becomes the basis for an empowering lesson for you:-
Having the Indian passport streamlines your actions for greatly investing in Indian properties. Yes, the Reserve Bank of India through this investment options has clearly made the whole process easy for NRIs who wish to wish back home. FEMA which is Foreign Exchange Management Act looks after the different transactions done through such a manner
What are the different nature of properties where as an NRI, I can invest?
Well, no such hurdles arise to you when it comes to purchasing residential as well as commercial properties. However, they can only make use of agricultural land, if they are either gifted with it or inherited from their forefather. The rule says that they can’t invest on agricultural lands though.
How do I need to make the payment?
You need to have a NRI account in any recognized Indian bank and the currency to be paid should be in INR.
So, as an NRI, you need to have a minimum of 20% value of the property right with you. Now, if you want to get funding, then based on the upkeep of the paperwork, there is absolutely no obstacle or problems in getting funding. To make your operations easier, you can get in touch with different financial institutions which will ease you in getting the requisite funds for your property.
As mentioned above that all the series of different transactions are done through Indian banks, so you need to facilitate your NRO/NRE (Non–Resident Ordinary/ Non-Resident External
account for easing payment. For your ease, you can very easily issue post dated cheques too.
Well, have a look at your papers in order to ensure that all of them are in place and that will give you an added advantage of ensuring that your transaction turns out to be quite smooth, safe, happy.
Are there any tax benefits which I can be eligible to?
Yes, your tax benefits are all in line with the series of different benefits which any individual actually enjoy. Likewise, you can very easily apply for the deduction on a sum of Rs. 1 lakh under the section 80C, of Income Tax, 1961.
In the event if you have made your mind towards selling the property within 3 years of becoming the owner, then in that case, the law of the land states, that it is “short term gain” which is earned by you and the earning will be taxable.
Now, the best thing is to keep the propery for a little over 3 years (In case you are looking to sell anyhow) this way the earnings will be less taxable and if you want you can invest in another property as well.
How can I get an idea about the best prevailing properties in India for me to help me in my quest of purchasing the best property which can help me to increase my investment opportunities manifolds?
Well, you can continue to get daily updates through the website Muslim locality for hot properties to invest yourself. Also, the (CREDAI) Confederation of Real Estate Developers Association of India periodically does the exhibitions for Non-Resident Indians with an aim to give them an idea about the prevailing properties in India. Yes, NRIs can series of options and offers from getting financial assistance in terms of loans from renowned and esteemed banks as well. Yes, the facilities in terms of minimal down payment as well as hassle free investment options are some of the best mechanisms which bring a delight on the faces of NRIs. So make sure, you subscribe to Muslim Locality and get daily investment options for an easy, effective and awesome opportunities waiting for you.
Well, before you head for bank, it is important to take the service of a lawyer who can help you know that all the papers are in place. Likewise, it is important that you need to request the seller for giving you no-dues certification which will authenticate the fact that the “said” property isn’t being put up to get loan in any bank. Similarly, the property needs to be fully free for all types of dues and bills as well for your ease.
Make sure that the document is “closely worded” in the event when you give power of attorney
Yes, power of attorney is mostly practiced when in the event you purchase an under construction property and that you really need your builder to complete the whole project. This is where the role of “power of attorney” comes to play. Yes, ensure that the document prepared for the same is minutely and closely monitored for ending any chance of any loopholes or forgery. While in the same process, you feel happy and blessed to be a part of a happy, satisfied and awesome base of clients who are enjoying the benefits of purchasing a property in India.