Property dealers in India offering
commercial, residential and industrial property advice & consultancy
services. We have been actively involved with Individuals / NRI's in
investment opportunities through Commercial projects and Residential
condominiums in Gurgaon, Delhi, Noida, Greater Noida, Dwarka, Kundli and
Sonipat. The name is associated with corporates like DLF Universal Ltd.
With a culture older than recorded
history & the guided by the vision of a prosperous future, India is a
truly an enchanted land of plenty.
As an Indian living abroad, the option of investing back home is more than
about investment, but the promise of settling down next to near & dear
ones. Investing in India has never looked better than it does now. With
exceptional infrastructure & quality of life that can rival any in the
developed world, Indian cities have finally come of age. The NCR region
comprising Delhi & its satellite cities - NOIDA & Gurgaon, is truly
a reflection of the unique blend of the ancient & modern that is India.
Boosted by the influx of a army of companies setting up base here, the
economy is a booming one. The region has become the nerve center of the
country & the chosen destination of those wishing to invest in an Indian
future.
From the multitude of malls, arcades & plush residential complexes to
the luscious greenery & spacious roads lining them, the lifestyle of
these townships is truly a world-class one. Advanced construction methods &
refined aesthetics are the hallmarks of every building, residential or
commercial that springs up in this region. Uninterrupted power supply, club
houses, community and health centers, swimming pools, and & multitude of
other services all go into enhancing the quality of life of the population.
Property Investment in India is today more than just a lifestyle choice,
its the acquisition of a status symbol. High Tech Properties
Q. Who is a NRI?
Foreign Exchange Regulation Act of 1973 a NRI as "a person who has
gone out of India or who stays outside India, in either case -
- for or on taking up employment outside India, or
- for carrying on outside India a business or vocation outside
India, or
- for any other purpose, in such circumstances as would indicate
his intention to stay outside India for an uncertain period."
|
Q. Is the permission of The Reserve Bank Of India
required for NRIs to purchase residential or commercial property in India?
A. No.
Q. Is an NRI who has purchased residential or commercial
property required to file any documents with Reserve Bank of India?
A. "An NRI who has purchased residential / commercial property
under general permission is not required to file any documents with the
Reserve Bank."
Q. What are the Reserve Bank guidelines regarding Investment
in immovable Property by a NRI
A. An NRI:
"May acquire immovable property in India other than
agricultural/plantation property or a farmhouse out of repatriable and
non-repatriable funds.
In respect of such investments NRIs are eligible to repatriate
- Sale proceeds of immovable property acquired in India to the
extent of repatriable funds used for acquiring the property, without
any lock-in period, up to two residential properties. The balance
will be repatriable through NRO Account subject to conditions
mentioned at item (I) (d).
- Refund of (a) application / earnest money / purchase
consideration made by house-building agencies/seller on account of
non-allotment of flats / plots and (b) cancellation of booking/deals
for purchase of residential/commercial properties, together with
interest, net of taxes, provided original payment is made out of
NRE/FCNR(B) account/inward remittances."
- Housing Loan in rupees availed of by NRIs from ADs / Housing
Financial Institutions can be repaid by the close relatives in India
of the borrower.
|
Q. Can foreign citizens of Indian origin acquire
commercial properties in India?
A. "Yes. Under the general permission granted by Reserve Bank
properties other than agricultural land/farm house/plantation property can
be acquired by foreign citizens of Indian origin provided the purchase
consideration is met either out of inward remittances in foreign exchange
through normal banking channels or out of funds from the purchasers'
NRE/FCNR accounts maintained with banks in India and a declaration is
submitted to the Central Office of Reserve Bank in form IPI 7 within a
period of 90 days from the date of purchase of the property/final payment of
purchase consideration."
Q. Can a NRI returning back to India hold or transfer
immovable property situated outside India?
A. A returning NRI :
- " may continue to hold, own, transfer or invest in foreign
currency, foreign security or any immovable property situated
outside India, if such currency, security or property was acquired,
held or owned when resident outside India."
- · "may open, hold and maintain with an authorized
dealer in India a Resident Foreign Currency (RFC) Account to
transfer balances held in NRE/FCNR(B) accounts. Proceeds of assets
held outside India at the time of return, can be credited to RFC
account. The funds in RFC accounts are free from all restrictions
regarding utilization of foreign currency balances including any
restriction on investment in any form outside India."
|
Q. What are the criteria regarding availment of home
loans for NRIs in India?
A. According to Reserve Bank guidelines for NRIs
- The loan amount shall not exceed 85% of the cost of the dwelling
unit.
- Own contribution, which is the cost of dwelling unit financed
less the loan amount, can be met from direct remittances from abroad
only through normal banking channels, your Non-Resident (External)
[NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account
and /or Non-Resident Special Rupee account [NRSR] in India.
- Repayment of the loan, comprising of the principal and interest
including all the charges are to be remitted from abroad only
through normal banking channels, your Non-Resident (External) [NR
(E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and
/or Non-Resident Special Rupee account [NRSR] in India.
|
Q. Can a NRI give a Power of Attorney to a person in
India for completion of loan formalities on their behalf?
A. Yes.
We very well understand that as an NRI you have a different set of needs
with respect to your real estate management and investment requirements and
we also understand that it needs special set of services to cater to your
requirements. The good news from India is that government has allowed 100%
repatriation for NRIs.
A. Reserve Bank has granted general permission to certain financial
institutions providing housing finance e.g. HDFC,LIC Housing Finance
Ltd.,etc. to grant housing loans to non-resident Indian nationals for
acquisition of houses/flats for self-occupation subject to certain
conditions.
Q. Can authorised dealer grant loans to NRIs for acquisition
of a flat/house for residential purposes?
A. Authorised dealers have been granted permission to grant loans up
to non-resident Indian nationals for acquisition of house/flat for
self-occupation on their return to India subject to certain conditions.
Repayment of the loan should be made within a period not exceeding 15 years
out of inward remittance through banking channels or out of funds held in
the investments' NRE/FCNR accounts.
Q. Can Indian companies grant loans to their NRI staff?
A. Reserve Bank permits Indian firms/companies to grant housing
loans to their employees deputed abroad and holding Indian passport subject
to certain conditions. Source: Reserve Bank of India
Q. What are the options available for obtaining guarantors
while applying for a HDFC/LIC loan
A. One will need a guarantor for a loan mainly for collateral
security. The guarantor will have to demonstrate appropriate networth to
cover for the loan. Usually one can have a guarantor in any city where the
loan issuer has a branch. Talk to loan issuers they will work something out
for NRIs and foreign banks.
Q. While purchasing real estate most developers demand a
Power of Attorney in their favor, is there a way to avoid it?
A. One can choose not to grant the Power of Attorney (POA) to the
developers. However this will mandate the mailing of all documents to your
foreign residence and associated time delays. A good compromise is to grant
the POA to the builder only for specific necessary items.
If you are an NRI or a Property Buyer/Investor you need to understand your
Investment Horizons in Real Estate pretty well.
Term of Investment – This is important as you need to hold on
for at least 1 to 3 Years for a decent capital appreciation and if you sell
your property within 3 years you are in for a short term capital gains which
is at par with the Income Tax rules of nearly 30 to 35% as applicable. It is
better to stay invested for 3 years and then plan the next investments with
Capital Gains etc.
Pre-Launch offers – Investing in property means also an entry
load by paying stamp duty and registration fees and other incidental charges
to the Builder etc. If you are investing it is always wise to invest as soon
as the project is launched as this gives you enough time for appreciation as
usually the builder goes in the Stock Market kind of a mode in the first
year of its property by hiking the prices every few months.
Know your Builder – It is imperative to know your Builder and
the project as at the time of your exit the builder has to be extremely
co-operative, the first question to shoot when you are buying an Under
Construction Project is – If I sell what happens? When can I Sell? Will
you charge me some transfer fees? How is the paper work will be done between
the Seller, Builder and the Buyer?
Invest with Deep Thought – The present market is volatile in
Mumbai and it is imperative for you to give a deep thought on various
accounts, which begins from the Project, Infrastructure available within the
Project, Outside the project in the neighborhood, Selling prospects, Leasing
prospects, Neighborhood development, Distances to Schools, Markets, Malls,
Hospitals, Highways, Airports, Railway stations etc. These should act as
your analysis points.
For NRI’s - especially before coming to India, make sure you
are carrying most of the relevant papers with you. You should always have an
NRE and an NRO account in India and if you are looking to invest in Mumbai
then one should have an account in Mumbai for easiness. Review your NRI
allowances by the Government of India every budget etc.
Home Loans – You can set off your EMI’s if you invest
wisely in a property as the rates are presently around 8% and your rental
returns are around 4-6%. You can be a happy man if you do this fool proof
homework as your EMI can be hedged off against the rent receipts to a
certain degree.
Re-Sale Properties – In a booming market every property owner
wants to encash his property at the best value. A few issues which we face
is the commitment level of the seller and we can stumble on to good
transactions at times, but this is more of a time consuming process at
times. The repair value, old building and other property documentation
issues can be challenging in certain transactions.
Returns – It is always advisable to take a conservative
approach in both Capital Appreciation and Rental returns. However one can
safely expect appreciations anywhere upwards of 15% Per Year and Rental
Yields of 4 to 6%.
Commercial and Malls – The opening of new Malls is surely a
good sign but one has to be very careful in investments in Malls and
Commercial real estate. The returns though can be constant, but for smaller
players the Malls and Commercial complexes can be too hot to handle as the
outgoings are pretty steep and there is a huge difference between the built
up and carpet ratio. It is excellent for self use and business or for a
pre-leased option.
NRI
Tips