Tips for Nris While Investing in India
May 06, 2016 Real Estate News
“Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”
-Franklin D. Roosevelt
The quote cited about hold extremely true as real estate is that one sector which is meant to bounce back even after a downfall and we have a clear example of that seen in the last couple of years, to be specific from the beginning of 2014. There was an upswing in the demand and well as the price of the property.
There has been a drastic increase also in a number of foreign investors especially after the reforms government made in FDI policies.
But one should be thorough while purchasing a foreign investment. Here are certain pointers an NRI should keep in mind while purchasing a property in India-
Keeping in mind the mentioned above tips would really help NRIs to get a property without much complication or difficulty.
-Franklin D. Roosevelt
The quote cited about hold extremely true as real estate is that one sector which is meant to bounce back even after a downfall and we have a clear example of that seen in the last couple of years, to be specific from the beginning of 2014. There was an upswing in the demand and well as the price of the property.
There has been a drastic increase also in a number of foreign investors especially after the reforms government made in FDI policies.
But one should be thorough while purchasing a foreign investment. Here are certain pointers an NRI should keep in mind while purchasing a property in India-
- The first step is to ensure the nature of property which an NRI tend to buy. As per the guideline by RBI, foreign Indian investors cannot buy agricultural land in India
- the investor should check thoroughly on the property purchasing. Check the documents properly. There have been cases where the seller sells a property which is on agricultural land which is also not approved by the government. In that case, the property becomes totally illegal.
- It is important on the part of the investor to ensure that they have a photocopy of the title deed from the seller. If the seller fails to provide so then there are chances of scam involved. Make an in-depth search on every detail of the property.
- Apart from this, also makes sure that all the clearance needed by the property is approved. For instance, the municipal clearance, environment clearance, the authority to distribute their undivided share etc. These documents are needed even if they property the investor is purchasing is under construction.
- It is preferably advisable to the NRIs to appoint an Indian lawyer to check the formal consent of the claims and ensure that the builder has all the required approval and documents.
- After choosing the property and deciding on the certain price, a sale agreement should be drawn. The agreement should have information regarding the final price of the property, instalments made, time due for rest of the instalments and other property details.
- The investors should then property registered at the Sub- District Magistrate.
- Except for registration cost and stamp, there is service tax that is to be paid. The service tax depends on the property purchased. If the property is constructed by a builder, the foreign investors on the 25% of the total price of the apartment have to pay a service tax of 12.36%.
Keeping in mind the mentioned above tips would really help NRIs to get a property without much complication or difficulty.
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