As diverse a country as India cannot be
summarised in a few words. Home to the most populated city, most
prolific film industry and one of the most favoured cuisines in the
world, India has a lot to offer. From northern Mumbai, home to both
the Indian Stock Exchange and Bollywood, to the south characterised
by paddy fields and coconut plantations, India is a land of
colourful diversity. With a plethora of languages, customs,
religions and arts, the country has always been a popular tourist
destination.
India is undoubtedly an emerging market and as
such has very good potential for capital appreciation. On top of
this it is a market where transactions take place in English,
finance and banking is straightforward, and a growing middle class
ensures a healthy rental market. The rocketing population creates a
constant demand for property, meaning that India unarguably
presents an interesting and very real prospect for investors.
There is, however, a catch. The opportunity
to buy is largely restricted to people with strong personal links
to India, defined as either non-resident Indians (NRI) or persons
of Indian origin (PIO). This means either Indian citizens living
abroad or people who have held an Indian passport at some time,
have a parent or grandparent with Indian citizenship or are married
to an Indian citizen. Technically foreign citizens of Indian origin
also need agreement from the Reserve Bank, but a general permission
to buy immoveable property has been granted.
If the buyer has status as an NRI or PIO the
rule is as follows:
An Indian citizen residing outside India
(NRI) can acquire by way of purchase, any immovable property in
India other than agricultural, plantation or farm house. He is
allowed to transfer such kind of immovable property to a person
resident outside India who is a citizen of India or to a person of
Indian origin resident outside India or a person resident in India.
(www.yesweb.org)
Still in this Chapter
Is this is good place to Buy?
Which type of Property should you go for?
Hotspots
The Purchase Process
Mortgages
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