Tag Archives: Home Buy

TIPS FOR NRI INVESTORS TO BUY A HOUSE IN INDIA

tips

It’s a daunting task for NRIs looking at investing in Indian property today. On the outside, with the rupee touching all-time lows against the dollar and India’s ‘real estate’ growth story looking bleak, the prospect for investments in property for NRIs seems like an uphill task. But this hasn’t deterred them from investing in India because, though for Indians property prices have appreciated significantly, for the overseas Indian, it has only been a marginal increase. So, whatever be your reason for investing in India, make sure that you are diligent and careful. Some important questions you need to ask yourself are:
Which city do you want to invest in?
In whose name do you want to buy the property?
If you have invested in a ready property, how do you plan to fund it?
Before any kind of an investment, engage in sufficient research or you may end up buying into micro markets. Also, make sure that the property has secured all clearances required by law. Insist on legal documents to ensure that your investment is safe.

Logically speaking, your first action plan should be to determine the nature of the property because NRI investment rules are different as per RBI guidelines. Buying a property requires time and energy and hence it’s advisable to not fall prey to hoax calls or ‘gut instincts’. Before you zero on into a project, speak to a few builders in the locality on the initial prices and the price for the last transaction. Make sure you visit a completed project by the builder to assess quality before deciding to buy.

Check the developer credentials, prime location, potential for infrastructure development and quality of property management in the project. Remember that apart from the registration cost and stamp duty, there’s also a service tax that will be levied. Once you arrive at a price at which the sale is agreed, pay through rupee denominated non-resident ordinary (NRO) or nonresident external (NRE) accounts and foreign currency non-resident (FCNR) accounts. It’s always suggested to invest in mind-sized property with high-end amenities.

Before you finalise on any property, find a good real estate adviser who will help you out with all the details. It’s advisable not to go to a broker. Most NRIs get tempted to purchase a holiday home in a hill resort or beach property or a retirement home over buying yet another flat in the city. But keep in mind that residential land purchases usually pay off well for most investors. Have any more tips? Share it with us.

What you need to know while buying a home.

Buying a home is a big legal and financial commitment.

Now that we have got the attention of all the home buyers out there, let’s move on to the next question: What should one look for while buying a house? What adds the adjective ‘dream’ in home and in home buying experience? The exact answer varies in every case and for some, buying a house can be a more overwhelming process than for others. Here are a few pointers that will help:

Your home: Day and Night

The windows that let in so much light during the day may attract sly peeping toms at night. Your windows might open up to a peaceful view in the day time, but the seemingly quiet residential street may be just a hub for rush hour traffic at night. The park in the neighborhood might look unsafe/deserted at night. The shady tree right outside might be a brutal punishment during autumn. So check, check, check.

Talk to neighbors

More often than not, a helpful neighborhood is the key. You don’t want to be in a community where no one cares or knows about each other. Knock at doors and ask questions, how much ever silly they sound. Afterall you don’t want your kid to have no one to play with. Neither would you want to make STD calls to your best friend every time you have a gossip or some issues, right?

The sellers are the boss!
Get into the history of the house. What issues did the previous owners experience? Were the issues fixed? If you need something fixed, will you get help easily? After clearing your minutest doubts, get a home inspection done. Fix all the anomalies before you move in. Knowing what needs fixing can help you negotiate a lower price. If nothing, you’ll at least be prepared for costs you’re soon to incur.

‘Once the view, always the view’ is a fad.
Make sure you inspect your neighborhood area and buildings and you know what you are signing for. There could be tear downs that might restrict your awesome ‘priced’ view that made you sign the dotted line and purchase the house in the first place. You want to be prepared for any mammoth structure that could crop up close to your house and affect your light or the way your house looks or your view.

Taxes/ Land prices
In some areas, houses are re-appraised. What could feel like a great deal and a good investment may not remain quite so grand if the property taxes are re-appraised year after year.

Once you are done with the external factors, do a detailed internal introspection. Check the drains, the windows and the faucets. It’s your dream home after all. Don’t hurry up with your decisions or else it might turn into a nightmare.