Looking to buy premium retirement homes for NRIs? Key things to keep in mind

January 17, 2023

Categories : NRI Corner | Premium retirement homes for NRIs

After working hard for years, many NRIs dream of spending their retirement years back in India. The sense of belongingness and seeing familiar faces are some of the attractions for NRIs. The Indian money value in the currency exchange is also an added advantage for NRIs buying property in India. However, if you are looking to buy premium retirement homes for NRIs, there are many things to keep in mind. Let us take a look at those key points:

Power of Attorney

If you are an NRI buying property in India and are unable to travel to India, you can still buy a retirement home using a power of attorney. A power of attorney is a legal document. It is written authorization given to a trusted person to act on your behalf at the time of buying a property. The power of attorney needs to be attested at the Indian Embassy. This is done to avoid any future conflicts.

Property registration

Being an NRI, you can buy residential or commercial properties excluding agricultural land. As of now, there is no cap on the number of properties you can buy. Before buying a property in India, always check property documents such as title deeds, previous deeds, and tax receipts. Registration should be done at the sub-register office.

Home loan

Being an NRI, you must buy the Indian property by paying in Indian currency. As per the Reserve Bank of India, you can take home loans from Indian banks. There are several documents and criteria that you must fulfill. For instance, you need to furnish copies of:

Passport
Valid visa
Work permit
Contract of employment
Work experience certificate
Salary certificate
Statements of non-resident external (NRE) or non-resident ordinary (NRO) accounts

Generally, banks will provide loans of up to 80% of the property value. However, RBI approval is necessary.

Tenure of home loan

While an Indian citizen can avail of loans with a maximum tenure of 30 years with some banks, the tenure for NRI home loans is restricted. It is available within the range of 5-15 years.

Income tax

Once you have bought premium retirement homes for NRIs in India, you will have to pay income tax to the Indian government. Income tax is applicable on all properties bought with the purpose of investment or self-use. However, NRIs are granted certain tax benefits. It is a good idea to find out about the house tax deduction benefits that you are eligible for.

If you are planning to visit India to tour and buy premium retirement homes for NRIs, here is a useful read on questions to ask — this will help you make an informed choice.