Major factors that an NRI should consider before making an investment
• An NRI can buy residential and commercial property in Kerala, but not allowed to buy agricultural lands, farmhouses, and plantations. But he can inherit such properties.
• An NRI should be aware of the builder, its projects, location, financial stability, quality of construction and on-time delivery etc
• Know the property documents related to the property such as the title deed, prior title deeds, latest tax receipts, encumbrance certificate, approved plan, building permit number etc.
• 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.
• Before investing into real estate an NRI should know that he 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.
• An NRI should know the ROI potential of the property. An NRI can sell or rent his property without constraint.