Home Buying Process For NRI’s

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Planning to buy a property in India while you are abroad ? It’s not required that you physically have to be in India. Thanks to Indian laws, over the years, they have made this a fairly easy job. The general permission, however, covers only purchase of residential or commercial properties and an NRI cannot buy agricultural / plantation property or a farm house in India.

Home Buying Process

There are no restrictions imposed on the number of residential or commercial properties that can be purchased.

After finalizing a property, here are a few points that can help you if you are planning to buy a home .

Bank Accounts: Make sure you have NRE & NRO bank accounts opened. Channelize your foreign currency through these accounts. You will need to show proof of payments that you have made to the builder / seller from these accounts to get a home loan approved. NRE accounts can take in only foreign currency deposits and NRO accounts can help to deposit any income from India.

Payments: Most construction companies take in a 10% of the property value as the booking cost followed by 15% on the remaining value on the property agreement. Make sure funds for these transactions are through your NR accounts. Also, if your builder works on time phased payments, try to negotiate for construction based payments. This would avoid capital block if the project has been delayed.

Power of Attorney: This is a mandatory document for any NRI buying a property in India. For all practical purposes, you should give a power of attorney to any of your family members, this helps in easing the process of registration, possession, execution of agreements etc. You could give specific power of attorney, like, only for buying or leasing etc.

Repatriation: If you have buying or bought your property through NRE account, then you could repatriate your sale or rental income to your overseas bank accounts after tax deductions in India. This income is exempt from taxes in most foreign countries.

Source : Bangalorenest

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