Things that NRIs Should Consider While Buying Real Estate

By : 360 Realtors

08 June, 2018

If you are an NRI, looking forward to invest in real estate in India, here are certain guidelines you will find beneficial. NRIs carrying a valid Indian passport can go for residential assets in the Indian real estate market. However, they should know the restrictions and adhere to the norms. The NRIs who have a valid Indian passport do not need any approval to purchase property, unless they are from certain neighbouring countries like Sri Lanka, Pakistan, Iran, Nepal, Afghanistan, Bhutan, Bangladesh or China. Although the residents from these countries need an approval before investing in Indian real estate, residents from other countries need no approval.

They have no limit on the amount of land they can buy in India. However, certain restrictions have been imposed on the type of agricultural land they can buy. For instance, the residents will not be able to invest in agricultural land, farmhouses or plantation properties. Unless they receive any such property as gift, or inherit them, it is not possible for the NRIs to own these types of properties. The transactions for buying these properties are to be done through Indian rupees through the regular NRI account via the normal banking channels. Besides, it is also possible for NRIs to get home loans in India, with a maximum loan amount being 80% of the value of the property. When they invest in Real Estate India, no rules are imposed by RBI on immovable property, that is inherited or gifted.

The NRIs can also rent out and lease these properties without any restrictions. However, it is advisable to hire a reputed lawyer to ensure that all the formalities are completed and all the documents are ready. It is necessary to get the original deed documents verified, ensuring that the seller owns the property. You must check out that all the dues related to the property have been cleared by the seller. You can seek the assistance of the Realtor Companies to ensure a hassle-free purchase. It is also necessary to verify that the right to transfer the property to a buyer has not been diluted by the seller. You need to cross-check, whether the property has been built on an agricultural land, without the permit of the government. NRIs may run into legal hassles in case the property has been developed on an agricultural land.

It is wise to invest in Residential real estate in the big cities, as the returns on investment for these types of properties are high. For a long time, NRIs have been purchasing these properties for commercial purposes as well as personal use. However, due to the slowdown in the real estate economy in the past couple of years, the investments have decreased. The market is recovering from the crisis and NRIs are likely to invest more in Indian real estate in the years to come. Besides, they are also investing in commercial real estate. The property market in India is booming, and NRIs can consider buying property in India now.