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Frequently Asked Questions

Real Estate

Any Real Estate Questions That You May Have, Read Our FAQs


What is the difference between Built – Up Area, Super Built – Up Area and Carpet Area?

Carpet Area: This is the area of the apartment / building that does not include the area of the walls. Built – Up Area: This is the area of the apartment / building including the area of the walls. Super Built – Up Area: This includes the Built – Up Area along with the area under common spaces such as the lobby, lifts, stairs etc. This term is therefore only applicable for multi – dwelling units.

Can foreign citizens of Indian origin acquire commercial properties and premium properties in India?

Yes. Under the general permission granted by Reserve Bank properties other than agricultural land / farm house / plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchasers NRE / FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property / final payment of purchase consideration.Therefore, you can acquire commercial properties in India.

Can foreign citizens of Indian origin acquire or dispose of residential properties by way of gift?

Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of residential properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not, subject to compliance with applicable tax laws.

I have a flat which I want to sell and buy a new flat which will be bigger in area. What are my tax implications with regard to capital gains?

On the proposed sale of your flat you may purchase another flat within two years of the date of sale of the original flat. If you have invested the entire amount of capital gain irrespective of your area of the flat, you would not have to pay any capital gains tax.

Is there any restriction on number of residential properties/ commercial properties / premium properties in India that NRI / PIO / OCI can purchase under the general permission available?

There is no restriction on number of residential properties / commercial properties / premium properties in India that NRI / PIO / OCI can purchase under the general permission available.

Is NRI / PIO / OCI who has purchased residential property / commercial property under general permission required to file any documents with Reserve Bank of India?

NRI / PIO / OCI who has purchased residential property / commercial property under general permission is not required to file any documents with the RBI.

About Investment Property and Rental Income?

NRIs / PIOs / OCIs can, freely rent out residential properties and commercial properties, source of acquisition of property not significant. Freely repatriate rental income without prior permission. Tax deducted at source on rental income, freely adjust rental income against home loans. If loan amount is higher, pay through NRE, NRO and FCNR accounts. Short term Capital Gains – property held for less than 3 years. Long term Capital gains – property held for more than 3 years. NRIs / PIOs can take the advantage of indexing the cost of acquisition and improvement, investing of sale proceeds in special Bonds On deciding to sell the rental property the NRI can apply to the Income tax authorities for the certificate to be deducted at source.

What aspects should overseas investors look at in the Indian real estate market to facilitate the suitability of their projects?

Any NRI before investing in Indian real estate should also focus on the particular segment that he plans to invest in – like residential, retail or office space. Consulting legal firms and real estate firms providing NRI services can be very useful for those seeking professional advice. It has to be remembered that the decision will be important as it will have long – term implications.

What kinds of projects are coming up in Indian real estate that offers a good value to not just NRIs but PIOs and foreigners?

The relaxation of FDI in the construction development sector, in March 2006 seeks to give NRIs, PIOs and all foreigners equal opportunity with their Indian counterparts in the Indian real estate sector; and a lot to look forward to. The guidelines set for FDI investment has it that real estate cannot be just bought and sold. For selling it, one has to develop it, construct upon it or fulfil the criteria of one year of minimum development. NRIs, PIOs and foreigners who were not permitted earlier and needed government approval prior to construction development; can now invest in land, buy it, construct upon it or just develop it, sell constructed buildings or just developed plots. FDI through automatic route can also flow in not just for the housing sector, but also for townships, housing, commercial area, and infrastructure development. Apart from this, restrictions in terms of minimum area of land, minimum number of units and so on has been done away with. Instead, the standard that has been evolved is in terms of minimum constructed area, for instance, for a construction project, 50,000 sq .mts of construction has to be complied with. Your FSI can help you decide the plot size. For selling developed land, the designated area is 25 acres.

How is the mode of payment for NRI home loans?

The loan towards the house has to be paid upfront for the entire tenure of the loan by way of direct remittances from abroad through normal banking channels or from such accounts as may be permitted by RBI from time to time. As of today, the payments are done through NRO, NRE, NRNR and FCNR accounts. These accounts change on the basis of RBI permissions to each HFC.

What is the repayment period for a NRI Home Loan?

The housing finance offered to NRIs normally do not exceed 5 years. However, some HFCs offer loans for a term of 7 years. The repayment for the loan is by way of EMIs. The EMIs begin only after the entire loan is disbursed. In case of a part disbursement, you pay simple interest at the rate applicable on the loan amount that is disbursed to you.

What is the eligibility for obtaining NRI Home Loans?

Your eligibility is calculated in the same way as it is calculated for resident Indians. More emphasis is laid on the following criteria in the appraisal of a NRI case:

  • Qualifications – the NRI applicant has to be graduate
  • Current job profile & Past experience
  • Probability of continuing abroad for the loan tenure
  • Probability of servicing the loan with an extended tenure in case you have to return to India

For what kinds of property is a NRI eligible for Home loans?

A home loan is sanctioned to the NRIs for any of the following housing finance schemes:
  •  To purchase a house either ready-built, under construction or from a second owner.
  •  For self-construction of a property on a plot of land.
  •  To finance the purchase of a plot of land allotted by a society / development authority.
  •  For renovation or improvement of an existing property in India.

Can a NRI avail of a housing loan?

Yes, NRIs can avail of a housing loan to buy a property in India. However, the terms and conditions for a NRI loan offered by the banks and HFCs are different than Housing finance granted to Residents of India.

What are the repayment period options?

Repayment period options range generally from 5 to 15 years. A 20-year repayment period option is also provided by a few HFCs usually at a higher interest rate.

What is the maximum home loan amount which can be borrowed?

The maximum home loan amount one can borrow depends on many factors, which include the purpose of the loan, whether for purchase of property, or improvement or purchase of land for development. Also the residential status of the applicant, whether resident in India or non-resident will also have a bearing on the maximum quantum of loan that one can borrow. Typically, a Resident Indian can borrow up to 85% of the cost of the property, including cost of land, subject to a maximum of Rs 5,000,000.

When and how can an application be made for home loans?

An application for home loans can be made any time after you have decided to acquire/construct a residential property, even if the residential property has not been selected or the construction has not commenced. An application form along with the necessary documents has to be submitted to the respective finance company after which they would review the application and decide on its status.

What is the loan amount which can be sanctioned?

HFCs sanction loan amounts is based on eligibility depending upon your repayment capacity (which takes into account your age, qualifications, assets, liabilities, stability of occupation, savings history) and according to your income. The maximum loan that can be sanctioned varies with housing finance companies and the generally, the maximum loan amount is 80 to 85% of the cost of your home.

What is the guarantee that we will get best and prompt services?

Having stayed abroad for 33 years, including Canada, we know what our friends from abroad expect. We are so sure about our services that we guarantee what we offer. For us at Max Properties, exceeding clients’ expectations is the minimum what we aim to deliver. Before we offer any service, we specify the time required and the cost. If the work is not done within the specified time and to the clients satisfaction we will give you a credit of the amount paid which will be adjusted against our next service. This guarantee however does not cover instances/events that are beyond human control.

Which cities in India are these services offered?

For now, Max Properties offers these services in Pune. Any services outside Pune can be quoted on specific inquiries.

What are the various packages that Max Properties offer?

We have Annual, Semi-Annual and Quarterly packages. These packages are tailor made based on individual needs. Apart from these packages we also have a-la-carte services. Prices can be quoted on specific inquiries.

Why should I buy a used car through Max Properties?

We have reliable contacts with a Used Car Dealer. The cars they deal come with a one year warranty for major components like gearbox, clutchbox, transmission etc. In spite of this warranty their price is very competitive compared to other Used Car Dealers who do not provide any warranty. This service is provided free of cost.

What are the services you provide in buying a Car? What is the cost for these services?

We have very good and reliable contacts with New Car Dealers who will give you the best rates in town. We do not charge anything for this service.

What are the other services that Max Properties offer other than renting/selling/buying/leasing of the properties? What is the cost for these services?

At Max Properties we offer various real estate services, paid and complimentary. Paid services like paying utility bills, property taxes etc. and other property services. For clients that sign us a contract we provide complimentary services like arranging a Chartered Accountant for PAN card and/or filing taxes, arranging a RTO agent for driving licences, advising you of the schools in your locality etc. Prices can be quoted on specific inquiries. We offer many other real estate services and allied property services that are not mentioned herein and can be quoted on specific inquiries.

I have a property in Pune that has been rented out and is due for renewal. Does Max Properties provide this service? What would be my cost for availing this service?

Yes. Max Properties will assist you in all possible ways to get the Leave and Licence renewed. We will also assist in registering the deed and submitting to the Police Station for their records which is a MUST due to heightened security. The cost of our service is half month rental amount.

I have a property in Pune, India and would like to sell it. Does Max Properties provide this service? What would be my cost for availing this service?

Yes. Max Properties will provide all the services right from searching a suitable buyer to the execution of the Sale Deed for your property deals. With the expertise we have we ensure to get you the maximum sale amount and in a shortest possible time. The cost of our service is 2% of the Sale Amount that does not include any transfer/society/mseb/registration/stamp duty charges.

I have a property in Pune, India and would like to rent it out. Does Max Properties provide this service? What would be my cost for availing this service?

Yes. In fact Max Properties will take care of all the steps and procedures required to rent out the property, including but not limited to, finding a suitable and reliable tenant as part of our tenancy management services. Max Properties will register the Leave and Licence deed with the registration authority and also register with the Police Station the copy of such an agreement. Due to heightened security this step is a MUST before any property is rented out. The cost of our service is 2 months rental.

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