Few Conditions for NRI to buy a Residential Property in Chennai
As you know, the real estate has become a good investment option for Non-resident Indian (NRI) and they have the huge interest to get settled in India, especially in Chennai. Here, let’s discuss few things which help NRI to buy a residential property in Chennai:
Nowadays, the non-resident Indians- NRI to buy a residential property has become very easy and if you have a passport, then you can just invest in a property in some days. But, make sure that the buying property is not an agricultural land. If you are willing to invest in a property in India, then you have known all these things which are mentioned below:
Regulatory Act for NRI to buy a Residential Property
You don’t require a special permission to buy a property, but you should have an Indian passport. The Reserve Bank of India (RBI) has made these rules to attract the foreign investors to make their investment in India. And all the real estate transactions are governed by rules which comes under the Foreign Exchange Management Act (FEMA).
Properties which you can invest
Actually, there is no restriction in the case of the number of properties. You can buy both commercial and residential properties as much as you wish. But, when it comes to agricultural land, these properties are not allowed to purchase but it can be gifted or inherited in question.
Funding and Transactions
In India, if you are going to make a property investment, then all the transactions should be made in Indian currency and it should be done only through the Indian banks. Even the NRI can able to get funding if they have a clean and proper paperwork and there are many loan schemes available for NRI in India. But, make sure that you invest 20% of the value of the property from your own sources and you can get funding for the remaining 80% of the value of the property.
Before you approach the bank for funding, make sure that you have a clean paperwork and even get it verified by the lawyer. When buying a property, you should get a no-dues certificate from the seller and there should be no pending bills with any authorities.
Power of attorney(POA) If you are going to buy a property which is under construction, then you’re supposed to give power of attorney to your builder. Just do all this process with the guidance of your lawyer. So that, there will be no chance of forgery. Even this will make your investment very secured.
There are so many tax benefits available for NRI. After the purchase, if you sell the property within three years, then it is considered as short-term capital gain and the earnings are considered as taxable. After the purchase, if you sell the property after three years, then you can reduce the long-term capital gains tax, by just investing in another property.
You can find different investment options in various exhibitions which is organized by “The Confederation of Real Estate Developers Association of India (CREDAI) and even offer loans from top banks on the spot. You as an NRI can find many options for investment and reduction in down payment. And these are the things which you need to check before you invest in real estate in Chennai.
If you wish to invest in a property in Chennai, then there are many flats for sale in Chennai at affordable prices.