Recent developments in real estate regulations have made it a lot easier to invest in property, spurring unprecedented growth in the sector. And given the current foreign exchange rates , there has never been a better time for NRIs looking to buy property in the country. Besides the financial returns of a sound real estate investment, there is also the emotional quotient attached to owning a property back home.
As an NRI, you are allowed ownership of residential or commercial property in India. But, you cannot purchase agricultural land, plantation property, and farm house, which can only be obtained through inheritance, or as a gift.
When choosing a residential property, what are your personal requirements. Are you looking to buy a summer home by the beach? Or, would you prefer an apartment that you could rent out?
Gated communities offer additional advantages such as a clubhouse, gym, in-house shopping and sports centres, security, and maintenance…all at your doorstep. If you are looking to rent the space out, you will have a significant secondary stream of income from classy luxury flats in Chennai. You may also want to factor in the cost of property management and maintenance while making this decision.
A checklist of all the required documents is indispensable. If you don’t have an Indian passport, you would need to obtain a Person of Indian Origin (PIO) card. On the other hand, if you are not an Indian citizen, but one of your parents is, then you would need the Overseas Citizen of India (OCI) card.
Secondly, you would require a Power of Attorney (POA) certificate to have a reliable person execute the purchase on your behalf. A PAN card is also mandatory to file income tax returns for your investment in the country.
Finally, it is important to remember that payment is acceptable only in rupees.
Here are a couple of key negotiation tips to help you strike the right deal. Thoroughly research the local property market. How centrally located is the property? Is it well connected by public transport? What about water availability? And air and noise pollution? Make sure you have all these questions answered before you arrive at your realistic “take-it-or-leave-it” proposition.
Management and Maintenance
Everything said and done, you want to sleep well knowing that your offshore property is safe and well-maintained in your absence. You may want to consider a property management service for your own home or rented property that ensures maintenance, timely rent collection, and upkeep.
For those of you looking for properties in Chennai, we hope these tips have brought you up to speed with the basics of long distance property purchase in India, and help you along your home buying journey.