A home in one’s native is often the dream of all Keralites who are living abroad. Kerala, one of the most developed states in India, is the preferred real estate destinations for all NRIs. According to a report by JLL India, a global real estate management company, Trivandrum and Kochi are the two of the 10 the future cities of India. This shows the state has the favourable market conditions for NRIs to invest in Kerala.
While making an investment in real estate, what are the important aspects the NRI buyers should check. Listed below are the checklists for NRI buyers.
Type of property
The NRI buyers can own any immovable property in India. The immovable property includes both residential (apartment/villas/land) and commercial properties. They cannot buy agricultural lands/ farmlands/ plantation property, but they can inherit such properties.
Power of Attorney (POA)
The physical presence of an NRI is not necessary while doing the property related transactions. He can execute official procedures like property registration, home loan procedure, property buying etc through the power of Attorney. The person who holds the power of attorney can be his close friend or relative residing in India.
For buying residential property in India, an NRI can avail home loan from any financial institutions registered with the National Housing Bank (NBC). He should hold a bank account in any authorised Indian Bank and make all transactions in Indian currency only. The repayment of loan can be done with NRO/NRE account or FCNR (Foreign Currency Non-Resident) deposits.
Like every citizen, an NRI is qualified for tax benefits. The NRIs can claim tax benefit according to section 80 C of Income Tax Act, 1961. The charges for the processing fee, stamp duty, registration and municipal tax are applicable for the tax deduction.
Sell/rent –an NRI property
There is no restriction on NRIs to sell any of his property. An NRI can sell his inherited farmland/ agricultural land only to Indian resident or he can gift it to anyone. Similarly, he can rent his commercial/residential property without any constraint. The rental income is eligible for repartition.