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September - 2014 - Special issue > Best Projects to buy in India

Best Projects to Buy in India

SI Team
Monday, September 22, 2014
SI Team
Buying a property in India has always been a lucrative option for Indians residing in the U.S. Be it for sentimental reasons, for security purpose or just as a monetary investment NRIs have always preferred to purchase a house back home. Even though property prices have appreciated significantly over the past five years, it has not had an adverse effect on the buying patterns of NRIs. For the overseas Indian, it has only been a marginal increase owing to the depreciation of the Indian rupee against the US dollar. This has made investments in India's real estate sector more affordable and extremely lucrative for overseas investors.

Non-resident Indians have invested over $2 billion in Indian real estate in 2013. The group has spent at least 35 per cent more on buying homes across the country in 2013 as compared to 2012 and made for almost 12 percent of total apartment sales in the top seven cities. The Indian diaspora living abroad has shown a growing interest in several cities across the nation. Bangalore has topped the charts as the go to destination for purchasing properties followed by Coimbatore, Chennai and Kochi.

Steps to Make the Process Easier

The idea of buying a property in India has always attracted Indians living abroad; however, it is not easy for families to find the perfect property as they are not physically present in the country. NRI buyers must be extremely careful while taking the decision and initiating the procedure to buy a house. The first thing buyers must do is make the ground checks. "One must examine all the legal documents before finalizing on the property. Ensure that you have seen the title deed, in original, and that it is solely in the name of the seller. One must also check that the property has secured all clearances required by law," adds Mr. Satya Prasad, a recent home buyer.

Once the family has done the background checks and finalized on a project, the purchase is to be taken care of. The primary step is to create a sales agreement which starts the final amount, advance payment, time limit to pay the due amount and details of installments. The deed must then be registered at the sub-registrar or Sub-District Magistrate. Buyers can appoint a representative in India (with a power of attorney) to act on their behalf. The power of attorney must be notarised with the Indian consulate in the buyer's country of residence.

Buyers also need to take care of taxation. Apart from the registration cost and stamp duty, a service tax is also levied on the transaction which depends upon the property. A property that is being constructed by a builder requires buyers to pay a service tax of 12.36% on 25% of the total price for apartments up to 2,000 square feet and 30% for bigger apartments.

Ensuring a Safe Deal

To make the process air tight, buyers must go through a trustworthy channel, either through a friend or relative to ensure the authenticity of property. One can also approach developers through property expos and seminars. "It is always better to put your trust in a reputed developer who can provide a clear title property free from a lawsuit. These developers will also take care of maintenance of the property after purchase as well," says Mrs. Vidya Adala (Sr. Manager, Corporate Strategy and Development at Samsung Electronics) a recent property buyer.

In conclusion, it is a great time to purchase a house in India as builders across the country have awakened to the requirements of a wide range of home buyers. Developers today are building projects that have been designed keeping in mind the new-age and well travelled end user who seeks comfort at his disposal. Hence, make the best of the opportunity and find the house of your dreams.

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