A complete property buying guide for NRIs in India

If you are an NRI who is planning to buy a house in Tiruchirappalli or any other state in India, there are a few things that you must always remember before you invest. While India’s real estate division has seen a price change in the past, purchasing property in India has also become more rewarding with favourable currency rates. NRIs have played a key role in the Indian real estate market.

Due to the numerous rules and regulations included in the process, property purchase may be an intricate affair. Thus, if you plan to purchase flats in Chandigarh or any other state in India, a few things may help you sail through the investment process flawlessly.

  • Tax Benefits

The NRIs are provided with certain tax benefits. If you sell the purchased property within three years, it comes under the temporary capital gain where taxes are applicable. After three years, if you sell the property, it will come under the lasting capital gain where the investment in another property is applicable.

  • Nature of the property

As an NRI, you can purchase all kinds of immovable properties in India besides farmhouses, agricultural land, and plantation property. To obtain these properties in India, you will have to get the RBI and the government’s approval.

  • Home loan

The RBI has offered general permission to banks and housing finance firms registered with the National Housing Bank to offer loans to NRIs to Buy house in tiruchirappalli or in any part of India. Authorized in Indian currency, the loan must be repaid using a similar currency. But, as per the rules and regulations, the loan amount cannot be accredited to the NRI’s bank account directly and has to be paid to either the developer’s or seller’s account. You can pay back the loan using funds in an NRI’s NRE/NRO account or FCNR deposits.

  • Transactions

All investments are meant to be made in Indian currency utilizing an NRO and NRE account from any FCNR deposit account or Indian bank to avoid forex variations. You can even apply for home loans if you have inadequate funds. But, the loan must be paid back in Indian currency utilissing the bank accounts as mentioned above.

  • Power of attorney (PoA)

As you are residing outside the country, you have an option to offer PoA to your relatives or friends to complete the property purchase process in India. The PoA can be specific or general about the rights your representative can exercise.

  • EMIs and the Forex

The simplest way to reimburse loans is by paying via equated installments monthly. But, the alterations in Forex exchange can have an effect on your EMIs and enhance your issues. Thus, always pay via the rentals.

  • Verifications

You must have a methodical background check done on the owners, builders, or real estate developers whose houses you plan to purchase. To avoid complications and scams, one must always try to engage in a direct transaction and avoid all kinds of brokers and middlemen.

For NRIs planning to buy flats in Chandigarh or any other state in India, the following are some documents that you will need to show:

  • OCI card and/or Passport: You will need to showcase your passport in India. If you have a foreign passport, you can buy Indian property provided you have a Persons of Indian Origin card or an Overseas Citizen of India card.
  • Power of attorney: You should offer a power of attorney if you are unavailable in India to execute the purchase deal. Kindly note that you will need a special power of attorney that is registered and notarised and not a general power of attorney to carry out a property deal.
  • PAN Card: This is obligatory for property dealings.

To obtain a home loan, NRIs should furnish the below-mentioned documents:

  • Persons of Indian Origin card if you hold a foreign passport
  • Copy of Indian passport and visa
  • Overseas Citizen of India card if your parents are Indian citizens
  • Bureau report of the country of residence
  • Latest income tax returns
  • Latest payslips for the last six months/salary certificate
  • Employment contract/work permit/appointment letter of your country of residence
  • Bank statement of NRO and NRE accounts for the last 1 year

For a hassle-free ownership experience and smooth transaction, check and verify all essential papers.

  • Approved plan
  • Title deed. Certain states have particular paperwork that you should be alert of.
  • Building permit
  • Occupation certificate (in case it is a ready building)
  • Older title deeds, if any
  • Share certificate (if it is a cooperative housing society)
  • Updated encumbrance certificate
  • NOC from the society
  • If these documents are in order, then you can carry on preparing the sale agreement for buying the property.
  • RERA registration (if applicable)

Besides your identity proof documents, you will need to submit your present address proof documents (like electricity bills) and passport size photos for the sale deed registration.

Being an NRI, you must invest in India by remembering these points to formulate a stress-free procedure. Investing in the realty sector for NRIs has been a money-making investment but also works on a sentimental ground where you can be connected to your homeland always. The Indian government has made this entire journey simple and stress-free.

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