Property in India has always offered best returns on investments made by non-resident Indians (NRIs) and persons of Indian origin (PIOs). The Indian Government permits NRIs to buy or sell property in India.
The property acquisition or transfer by NRIs should be in accordance with the guidelines laid down by the Foreign Exchange Management Act (FEMA). NRIs should always purchase a property through a registered sale or conveyance deed. Laws also permit that they can buy a property on a power of attorney. In the second condition, an agreement to sell and a power of attorney are transferred by the seller in the name of the buyer.
PERMISSION FROM RBI NOT REQUIRED
As per the current legislative system, NRIs do not need to seek permission of the Reserve Bank of India (RBI) to buy any residential or commercial property in the country. RBI has stated in its ruling that foreign citizens of Indian origin, whether resident in India or abroad, have a general permission to buy property in the country for their bona fide residential purposes. The bank has also regulated the payment options which can either be made through inward remittances in foreign exchange through normal banking channels or out of funds in a NRE or FCNR account maintained with a bank in the country.
DECLARATION COMPULSORY
NRIs who purchase any residential property in India as per the general permission are bound to file a declaration with the central office of the RBI at Mumbai. This declaration should be made within 90 days from the date of purchase of the property or final payment of amount. It should consist of a certified copy of the document as a proof of the transaction and a bank certificate concerning the money disbursed.
SALE ALLOWED
The RBI has also stated that the property bought by NRIs can be sold without its permission. Although in case of a NRI, the amount raised from the purchase should either be remitted to India or paid out of the balance in a NRE or FCNR account.
Join atOnePlace as a Agent. Be an associate and increase your business
Latest Residential Deals on Indian Property
Free Legal Advice for Indian Real Estate
Posts Tagged Reserve Bank Of India
Handling home loan interest rate hikes effortlessly
Recently many financial institutions have raised their benchmark prime lending rates (PLRs). The PLR is normally a reference or benchmark interest rate that is used by the financial institutions for lending loans. The Reserve Bank of India’s decision to raise the key rates affected many banks as they felt the heat of increased cost of funds. To uphold their profitability, the banks transferred this load to the borrowers seeking home loan.
For borrowers who are tight on the budget will surely be affected by the hiked interest rates. But the market analysts opine that instead of losing the nerve, the borrower should understand and learn to handle his financial standing and debts more proficiently.
BE EQUIPPED
Borrowers who have opted for a floating interest rate should expect fluctuations in rate of interest. Some financial institutions even do not intimate the borrowers about the hike. Nor do they alert their clients of any approaching rate increase. Save some amount up your sleeve every month which could be used if in case the lender unexpectedly decides to increase the EMIs.
BUY AT INITIAL STAGE
Purchasing a house at initial stage ensures that the buyer will become debt free very soon. Also, paying off the home loan early in life helps to boost other investments sooner.
BORROW AS PER THE REQUIREMENT
Bigger loan amounts take a longer duration of time to be cleared and can turn out to be more challenging. Home loan borrowers who are not able to pay off the EMIs on time might turn into a defaulter and can even lose their dream home.
STAY AWAY FROM MORE LOANS
If you are not able to pay back the home loan installments on time then you should try to find out a better repayment option with the financial institution. Taking more personal loans and credit card purchases will only turn the conditions difficult. Stay away from unnecessary expenditure.
FIND ALTERNATE SOURCES
A loan against security, a gold loan or borrowing money against any property can be an alternate source to generate the much-required funds. You should not bring your emergency or contingency fund to a halt. Find alternate sources or assets that you can sell and prepay your home loan amount as much as possible.
Join atOnePlace as a Agent. Be an associate and increase your business
Latest Residential Deals on Indian Property
Free Legal Advice for Indian Real Estate
Blog at One Place 