How can one buy property outside India
If you are looking to buy a property overseas, be cognizant that the purchasing procedures may vary from the ones you have experienced in your own country. The modus operandi of buying a property varies by geography, so there is no one single formula that will work for all investments. For each country and property type, the due diligence requirements and purchasing procedures are different:
Singapore permits foreigners to purchase apartments (condominiums), but not land. Thailand will allow foreigners only a leasehold title to the land for a renewable, but ultimately limited period of time. In Dubai apartments are also sold as leasehold properties.
In general however, the 7 Steps to buying a property outside India are:
(1) Visit the property multiple times if necessary prior to making a purchase decision.
(2) Negotiate the purchase price, while factoring in all associated fees (legal, taxes, insurance, ongoing maintenance, brokerage, etc.)
(3) Liaise with a local property broker / firm of repute to understand and walk you through the nuances of the purchase.
(4) Appoint a local lawyer to assist with the legal due diligence and see the transaction through.
(5) Work with tax consultants both locally and internationally (in some cases a firm may have offices in both countries) to understand and abide by the tax and compliance requirements.
(6) While not entirely necessary, in many cases it is helpful to hire a property management firm to assist with management of the property post its purchase (leasing, rent collection, payment of charges, maintenance etc.)
(7) Arrange to remit funds overseas for the purchase – Under the Liberalized Remittance Scheme (LRS) all resident (Indian) individuals, including minors, are allowed to remit USD 250,000 per financial year. Thus, a family of four could remit up to USD 1,000,000 per year. Furthermore, under the LRS a resident Indian can also acquire property.
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