Buyers Guide

  • Avoid keeping a TV set in bed-room.
  • Avoid keeping any water feature or plants in the bed room.
  • Do not use separate mattresses and bed-sheet.
  • Arrange the furniture to form a square or a circle or an octagon in
  • Place a picture of bright sunrise on southern wall in living room.
  • Never put mirror in kitchen.
  • Keep the broom and mops out of the sight in kitchen.
  • Keep the bathroom and toilet door closed as much as possible.
  • Do not keep prickly cactus, plants in the house.
  • Place an aquarium in the south-east corner in living room.
  • Place a happy family picture in living room.
  • Place the computer on your right side on the table.
  • One should never hoard stale food, withered flowers, torn clothes, waste paper, waste materials, empty tins, old jars and useless things.
  • If there is marble flooring in the house you should see that the old leather shoes are not lying here and there.
  • Keep cleanliness and always light in sense sticks.

DOORS

  • Wipe the doors with a dry cloth daily to keep them clean.
  • Lubricate the hinges once in 15 days for smooth closing of doors.
  • Use the door stopper when the door is open to avoid banging.
  • The frames and shutters are subject to expansion and contraction during the monsoons.
  • Please take the assistance of a carpenter to fix the doors properly.

It is important to choose a good housing finance company which can handhold the customer right through his home buying process. Since a home loan is a long term commitment of 15-20 years, several factors like expertise, quality of service, in-depth domain knowledge and the company's level of commitment and transparency right through, the loan procedures, the fine print, quality of services offered and safe retrieval of the title deed are critical.

DOCUMENTS REQUIRED

Non Resident Indians

  • Last 3 Months Pay Slips.
  • Last 6 Months Bank statement (Salary credit).
  • Form 16.
  • Latest Photographs with signature.
  • Passport copy.
  • Processing fee Cheque.
  • Personal profile.
  • NRI Bank statement.
  • WLL 2 Form.
  • Work Permit.
  • Latest Increment Letter (if any).
  • Power of Attorney.
  • Check Credit Payment.

General

  • Last 3 Months Pay Slips.
  • Latest Form - 16.
  • Latest 6 months Bank Statement showing Salary Credits.
  • Age & Residence Proof.
  • Latest Photographs with Signature.
  • Processing Fee Cheque.
  • Application duly filled & Signed by the Applicant(s).
  • Pan card.
  • Self attestation in all paper.

Self Employed

  • Last 3 Years.
  • Profit and Loss Account.
  • Balance Sheet.
  • Saral.
  • Current Account Statement for Last 1Year.
  • 6 Months Savings Account Statement.
  • Pan Card.
  • Personal Profile.
  • Business Profile / Website.
  • Loan Details / OD Details.

If less than two year in the
present organization

  • Resume.
  • Relieving order from previous company.
  • Appointment order from existing company.

Reserve Bank of India (RBI) Guidelines on NRI Investment in properties in India

PERMISSION FOR PURCHASE OF RESIDENTIAL PROPERTY / COMMERCIAL PROPERTY.

NRIs holding Indian passports - No permission required.

NRIs holding foreign passports - Intimation to RBI via form IPI - 7 within 90 days of purchase of property or final payment of consideration Funds through NRE / NRO accounts.

II. SALE OF PROPERTY

Property held by NRIs in India can be sold. No permission is required from the Reserve Bank of India.

III. REPATRIATION OF SALE PROCEEDS

Repatriation of proceeds from sale of residential property purchased on or after 26th May 1993 is allowed.

The RBI will consider repatriation of the consideration amount remitted in foreign exchange for the acquisition of 2 properties. The sale has to have taken place after 3 years from the date of final purchase deed or from the date of final payment.

Application of repatriation (IPI - 8) has to be done within 90 days of the sale of the property.

IV. INCOME FROM PROPERTY

NRIs can let out immovable property in India. The rental income from the investment has to be credited to the NRO account.

Subject to changes from time to time.

E. & O.E.

V. RETURN ON INVESTMENT

RENTAL RETURNS - The rental returns on an investment in Residential property

in Chennai is 5% - 6% p.a.

VI. APPRECIATION OF PROPERTY

Conservative estimate of appreciation on an investment in property in Chennai is about 20% p.a. NRIs start to gain by investing in Real Estate when compared to the investments on the NRNR / FCNR deposits.

General

What is meant by valuation of property?

The valuation process evaluates the market value of the property. Demand and supply forces operating in the market, as well as other factors like type of property, quality of construction, its location, the local infrastructure available, maintenance, are all taken into consideration before the market value is decided.

How does property valuation help?

Typically, if a real estate agent is asked to judge the value of a piece of property, he would do so based on information of recent sales or purchases of similar properties in that area.

Though this may give a fair idea of the property's market value, an official property valuation would carry more weight. E.g. if you need to use this piece of property as a security against a loan, the bank's loan approval process would be faster and smoother if the property is certified by an official valuer. Many banks now insist on valuation certificates before issuing loans using properties as security. The value thus certified may also have chances of getting a higher amount of loan sanctioned.

Another benefit of official valuation is that it is a useful negotiating tool when selling the property.

Such certification also becomes essential in situations where the correct value of the property has a legal bearing—such as, a will statement, insurance papers, business balance sheets etc.

What is the meaning of a property's market value? How is its stamp duty decided?

The price that a property can command in the open market is known as its market value. Stamp duty is based on the market value or the agreement value of the property, whichever is greater.

What does the term 'Leasehold Property' mean?

When a piece of property is given or 'leased' to an individual (known as the 'Lessee') for a stipulated period of time, by the owner of the property (known as the 'Lessor'), the property is referred to as Leasehold Property. A certain amount is fixed by the Lessor to be paid as lease premium and annual lease. The land ownership rights remain with the Lessor. Transfer of property requires prior permission.

Are there any benefits in converting a leasehold property to a freehold one?

There are several benefits: if you convert the property to a freehold property, you become a full-fledged owner by getting the sale deed and having it registered. A freehold property has better marketability and can be sold, mortgaged or kept for standing security, which cannot be done with leasehold property.

Are there any income tax considerations while transferring newly acquired property?

If the transfer takes place within three years of purchase, the income tax exemption under Section 54F of the Income Tax Act does not hold good.

What constitutes conclusion of sale of a property?

An agreement of sale, coupled with actual possession of the property would be considered as a conclusion of the sale. Usually, the entire amount is paid at the time of handing over possession.

Residential

What is the difference between carpet area, built-up and super built-up area?

The area of an apartment or building, not inclusive of the area of the walls is known as carpet area. This is the area that is actually used and in which a carpet can be laid. When the area of the walls including the balcony is calculated along with the carpet area, it is known as built-up area. The built-up area along with the area under common spaces like lobby, lifts, stairs, garden and swimming pool is called super built-up area.

When there are apartments of different sizes in a complex, how is the maintenance charge calculated?

Legally, the actual area owned by the individual is the basis for calculation of maintenance charge.

Why do Co-operative Housing Societies collect a Sinking Fund?

Co-operative Housing Societies have a statutory obligation to collect a Sinking Fund. This is done so that in case the building needs to be repaired or reconstructed in the future, the society has sufficient funds to carry out the work. The amount to be contributed is decided by the General Body of the society; it should be at least ¼ percent per annum of the cost of each apartment, excluding the cost of the land. This fund may be used after a resolution is passed at the General Body meeting with the prior permission of the Registering Authority. This could be to carry out reconstruction, repairs, structural additions or alterations to the building as the architect thinks is required and certifies.

How is a lease agreement created?

A lease agreement can be reached in either of two ways, depending upon each case:

In cases where the lease contract is from year-to-year / exceeding one year's rent / reserving yearly rent, then a registered instrument can be created, which both the lessor and the lessee must execute.

In cases other than the above, an oral agreement followed by delivery of possession is considered enough.

What are the charges to be paid while gifting property?

When a gift of property is made, a gift deed needs to be made by a lawyer. Stamp duty on the market value of the property also needs to be paid, as well as the necessary registration charges.

Corporate

Can corporate bodies use residential properties as office space?

It is illegal to put residential properties to commercial use. However service-based industries are allowed to operate from residential areas, on the condition that they will vacate the property if any complaint is received from other residential owners.

Before purchasing property owned by a company, what aspects should be considered?

Before purchasing property from a company, it is necessary to verify with the Registrar of Companies that the property is not mortgaged or is not being used as a security against a loan, otherwise it is not considered a freehold property.

NRIs

Do NRI's require permission of Reserve Bank to acquire immovable property in India?

No. NRI's do not require any permission to acquire any immovable property in India other than agricultural / plantation property or a farm house.

Do NRI's require permission of Reserve Bank to transfer immovable property in India?

No. NRI's do not require any permission to transfer any immovable property in India. Permission is required only in the case of transferring of agricultural or plantation property or farm house to another citizen of India NRI or PIO.

Do PIO's require permission of Reserve Bank to purchase immovable property in India for their residential use?

Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property other than agricultural land/farm house/plantation property, in India. They are, therefore, not required to obtain separate permission of Reserve Bank or file any declaration.

In what manner should the purchase consideration for the immovable property be paid by PIO's under the general permission?

The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from any non-resident accounts maintained with banks in India.

Can such property be sold without the permission of Reserve Bank?

Yes. Reserve Bank has granted general permission for sale of such property. However, where another foreign citizen of Indian origin purchases the property, funds towards the purchase consideration should either be remitted to India or paid out of balances in non-resident accounts maintained with banks in India.

Can sale proceeds of such property if and when sold be remitted out of India?

In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a NRI or PIO, the authorised dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions are satisfied: -

The immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules/Regulations/Law in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act, 1999;

In case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

What other facilities are available for repatriation?

Authorised dealers can allow remittance up to USD 1 million for any purpose, per calendar year from balances in NRO accounts subject to payment of applicable taxes. The limit of USD 1 million per year includes sale proceeds of immovable properties acquired by the NRI/PIO's while they were resident in India and held for a period of 10 years and above. In case the property is sold after being held for less than 10 years, remittance can be made if the sale proceeds were held for the balance period in NRO account or in any other eligible instruments.

Can PIO's acquire or dispose of immovable property by way of gift?

Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of immovable properties other than agricultural land/farmhouse/plantation property by way of gift from or to an Indian citizen, NRI or PIO.

Can NRI's/PIO's rent out the properties (residential/commercial) if not required for immediate use?

Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income is eligible for repatriation

Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?

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 NRI's for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of loan margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investor's NRE/FCNR/NRO Accounts.

Can authorised dealers grant loans to NRIs for acquisition of a flat/house for residential purposes?

Authorised dealers have been granted permission to grant loans to NRI's 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 investors' NRE/FCNR/NRO accounts.

What are the guidelines for acquisition of agricultural land / plantation property / farmhouse by NRIs and foreign citizens of Indian origin?

All requests for acquisition of agricultural land / plantation property / farm house by any person resident outside India may be made to The Chief General Manager, Reserve Bank of India, Central Office, Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001. For further information please visit the FAQ Section of http://www.rbi.org.in

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