Some Important Points to Remember while Dealing with NRI Clients
Sep 04, 2017 Home Trading Steps
NRIs are high net worth individuals and if anyone has NRI client base then they have better chances of good brokerage. And brokerage is something that makes or break the business. Most of the NRIs have high disposable income and are interested to buy or invest in real estate in India. But dealing with NRI clients could be a bit tricky as compared to the domestic clients. They are usually very clear about their choices, come for a very short period of time and want everything to happened in a very smooth and organised way. However, there are few regulatory requirements that need to be fulfilled by NRIs to purchase property in India.
Hence, the real estate professionals should be smart and have complete knowledge about the dealing. There no space for any kind of error. So here is some information that one must know before dealing with any NRI client.
First, let’s understand who is known as an NRI. According to Foreign Exchange Management Act (FEMA) 1999, any individual who lives in the country for less than 182 days then that person is an NRI. An individual is defined as an NRI if he or she stays outside India for an indecisive period of time for business or employment purpose.
Then it is important to know whether NRIs can get loans from banks and other financial institutions for the purpose of buying property in India. This can help real estate professionals to help NRIs in the loan process as well. The answer is Yes. NRIs are eligible to obtain loans from various banks and lending institutions. The Reserve Bank of India (RBI) has already authorised financial institutions like HDFC and LIC housing finance to offer loans to NRIs to purchase property in India. But the loans are only provided if the property is bought for self-use. Hence this implies that NRIs cannot buy any residential property for income generation or investment purpose. In addition, the time period of home loans for NRIs ranges between five and seven years only as compared to the domestic clients that range about twenty five to thirty years.
Then the question arises whether NRIs can buy a property in India jointly with an Indian citizen or a Person of Indian Origin (PIO). this case is possible but an NRI or PIO is not allowed to buy property in India jointly with a foreign citizen. In addition, NRIs cannot purchase any farm house or agricultural land in India.
Now here are some more points to know for real estate professionals in case an NRI wants to sell his or her owned property.
NRIs are completely eligible to sell their property as any other Indian citizens. No particular permission is required from any authority or regulatory body. But there are restrictions in case of transferring of funds.
If a residential property is bought with funds from NRE accounts then the sale is limited to only two properties. And the amount from the sale of the property cannot be repatriated more than the amount paid for purchasing that property neither the capital gains. Hence the gains from the sale of the property need to be invested in India only.
So, now we hope you have all the necessary pointers that you should know while dealing with an NRI client.
Hence, the real estate professionals should be smart and have complete knowledge about the dealing. There no space for any kind of error. So here is some information that one must know before dealing with any NRI client.
First, let’s understand who is known as an NRI. According to Foreign Exchange Management Act (FEMA) 1999, any individual who lives in the country for less than 182 days then that person is an NRI. An individual is defined as an NRI if he or she stays outside India for an indecisive period of time for business or employment purpose.
Then it is important to know whether NRIs can get loans from banks and other financial institutions for the purpose of buying property in India. This can help real estate professionals to help NRIs in the loan process as well. The answer is Yes. NRIs are eligible to obtain loans from various banks and lending institutions. The Reserve Bank of India (RBI) has already authorised financial institutions like HDFC and LIC housing finance to offer loans to NRIs to purchase property in India. But the loans are only provided if the property is bought for self-use. Hence this implies that NRIs cannot buy any residential property for income generation or investment purpose. In addition, the time period of home loans for NRIs ranges between five and seven years only as compared to the domestic clients that range about twenty five to thirty years.
Then the question arises whether NRIs can buy a property in India jointly with an Indian citizen or a Person of Indian Origin (PIO). this case is possible but an NRI or PIO is not allowed to buy property in India jointly with a foreign citizen. In addition, NRIs cannot purchase any farm house or agricultural land in India.
Now here are some more points to know for real estate professionals in case an NRI wants to sell his or her owned property.
NRIs are completely eligible to sell their property as any other Indian citizens. No particular permission is required from any authority or regulatory body. But there are restrictions in case of transferring of funds.
If a residential property is bought with funds from NRE accounts then the sale is limited to only two properties. And the amount from the sale of the property cannot be repatriated more than the amount paid for purchasing that property neither the capital gains. Hence the gains from the sale of the property need to be invested in India only.
So, now we hope you have all the necessary pointers that you should know while dealing with an NRI client.
Looking for property portal?
Related Articles
-
-
-
-
Why Should Renters Think About Buying a Property?
Jun 01, 2017
See comments (0)
Write a comment
