Home Property in India
How to buy a house in India?
Here you will find the detailed information about real estate purchasing in India:
- the right way to choose the property and to effect the deal;
- property taxes and duties that should be paid;
- everything about home loans in India;
- home property management and renting;
- rental, commercial properties and related investment properties.
Real estate for sale
Most recent offers from house owners in India and from real estate agencies. Advertisements with the fixed price and auctions are listed here.
You can leave a comment and give advice to other visitors planning to buy a home in India.
India is the country of contrasts, there is everything here: palatial villas and apartments nested among the bungalows of poor people. So, there is the same contrast in the real estate market. It is possible to find for any taste and budget.
The prices strongly change from the state to the state and from the city to the city. For example, Mumbai (the former Bombay), the financial capital of India, for a reason calls one of the most expensive cities: the cost of square meter of residential property is quite high here. In other cities and states of India the prices are much lower. Cost is influenced also by the district of the city in which the real estate is located, proximity to the center, distance from poor quarters etc.
All the time grows demand (and at the same time the prices) for commercial and office real estate in New Delhi and Mumbai as more and more companies begin and develop the business here. Also there is a construction of new areas for business elite in the capital where exists all necessary infrastructure and, of course, new housing.
In other large Indian city, Bangalore, the cost of square meter of housing accommodation is significantly lower, than in New Delhi and Mumbai.
In the smallest state of India – Goa – foreigners often buy real estate with investment purpose as housing prices constantly grow here. Goa is famous for the virgin beaches and soft climate (in the winter and in the summer average temperature fluctuates from + 21 to + 30) therefore the tourists who wish to rent apartment or a villa here, becomes more and more every year. The real estate choice in Goa is extraordinary wide: it both cottages, and villas on the coast, and rural Portuguese houses, and apartments in multi-storey buildings. The cost of midland apartment comes up from 30 000 dollars and above. If you want to buy the house, it is necessary to pay 80 000–120 000 dollars.
Details about real estate purchasing
If you are not the Indian, your parents, grandmother or grandfather weren't born in India and you never had the Indian passport, to purchase real estate in this country will be quite problematic. Foreigners couldn't buy housing in this country before 2005 as it was forbidden. Now it is possible (though not in all states), however still remains very difficult and troublesome matter.
The owner of a tourist visa has no right to purchase the house or the apartment therefore first of all you have to receive the business visa and to live in the country not less than 183 days. Other option is to make registration of a company on your new real estate according to the Indian legislation.
However, contrary to common belief, it isn't obligatory to take in a share the person with the Indian nationality. Registration of the company can take a lot of time (as of one and a half months), the minimum authorized capital is from 2 000 dollars.
Signing any papers during company registration or purchase of real estate, be extremely careful because fraud is prosperous in India. Be sure to use services of the skilled lawyer knowing all twists and turns of the local legislation. As much as possible to insure itself from deception, address to the lawyer who lives in other city or state. And, of course, if you don’t have a perfect knowledge of English, demand to translate into Russian or other language clears to you all documents you should sign.
If you make purchase as a private person, be ready to such unpleasant procedure as fingerprint record and their entering to the Register. It is done out for the safety improving. Upon purchase of real estate it is desirable to address to the attorney who will make the contract of sale. After signing of this paper you will need to pay the deposit averaging 10–20% of a project cost.
Further it is necessary to receive the certificate of "purity" for the obtained object. It does include a lot of data: existence or absence of a real estate mortgage, confirmation of accessory of this real estate to the seller, its condition for the last 30 years and other data.
The application to the territorial revenue service will be the next stage of purchase. There have to make the public assessment of real estate value and determine the state duty size which depends on the price of this object declared by the seller.
After that you have to sign the agreement of purchase and sale. Thus the private person will need only the international passport and juridical person– all constituent documents of the company. Then the notary certifies the certificate of the property rights to the real estate. For now you can insure your house or the apartment, but it isn't an abiding procedure.
It is also possible to buy real estate in India on credit. Many banks provide a mortgage loan under 8–9% per year. Thus the annual sum paid on the credit isn't much more cost of rent of this housing. The state forbids banks to raise rates that do such way of purchase very attractive.
Costs of tenure
You have to be ready for payment of an annual property tax. Within two months since purchase it is necessary to lodge a declaration with the detailed description of your real estate to the revenue service. This declaration has to include such data as the area of object, materials which were used during construction, year of construction, the price, architectural features and many other things. The size of this annual tax depends on state in which the housing is located and from its cost.
In India expenses on housing service is about 250 dollars per year. This price includes payment for the electric power and water on the counter, and also the cost of daily cleaning. Any phone calls, including intercity, are paid by the time. All these payments have to be paid up monthly.
If you purchase real estate for the rent purpose and you aren't the citizen of India, you will need to pay annual income tax. Its rate depends on the rent cost of your real estate object (real or established by the state).
In the trade of the apartment or house you will need to pay a capital gain tax. The sum of payment depends on date of object possession. If it is less than three years, the income from real estate sale is considered as the ordinary income and to be assessed as the standard progressive rate. If the real estate was in your possession more than three years, the tax will be 20,4% of the sum received as a result of sale.