Essential Tips for NRIs Buying Property in Kerala

Many NRIs today are choosing to invest in real estate in Kerala. This growing interest is not just because of the state’s natural beauty. Due to better roads, smart town planning, and improved living standards, everyone is interested in the city. Kerala offers peace, comfort, and a strong link to roots for those living abroad. Buying a property in Kerala is owning land with enduring protection, savings, and rental earnings.

However, to make a smart investment, NRIs must understand the local rules, paperwork, and market conditions. This blog shares simple, clear tips to help NRIs make safe and wise property choices in Kerala.

Know Legal Rules and Paperwork

NRIs can buy residential and commercial properties but not agricultural land or plantations. Ensure you have essential documents such as a copy of your passport, PAN card, proof of overseas address, and passport-size photos.

You may need a Power of Attorney (POA) for someone in India to handle the deal. The RBI allows this, and it makes the process easier.

Research the Market Thoroughly

Decide the purpose of buying, such as buying for rent, personal use, or future sale. Consider popular areas such as Kochi, Kottayam or Trivandrum. These cities see fast growth. For example, flats in Ernakulam are in high demand due to better infrastructure and job options. Check home prices, rental demands, and future infrastructure. Picking the right location helps boost returns.

Arrange Finance Smartly

NRIs can get home loans in India, often up to 80% of the home’s value. These loans can be repaid from NRE or NRO bank accounts or rental income. Getting pre-approved helps you set a clear budget and act quickly on good deals.

Do Legal and Document Checks

1. Work with a good advocate to check property papers, seller history, and possible disputes.

2. Verify the land or building plan, check for unpaid taxes, and confirm ownership.

3. Avoid paying large sums before all checks are done.

Plan for Taxes and Repatriation

NRIs must pay stamp duty and registration, similar to other buyers. When you sell a property, you must pay a TDS of 12.5%, along with applicable taxes. Also, you cannot claim indexation advantages on this sale. To manage rental or sale earnings for homes or flats in Kochi, keep your BRE/NRO accounts active to handle the repatriation of rental or sale earnings.

Prepare for Remote Ownership

If you can’t visit often, appoint a trusted local contact. Consider regular visits, even once a year, to check upkeep and resident issues. Keep in touch with residents, monitor society rules, and stay updated.

Final Words

Investing in property in Kerala can offer NRIs a mix of financial gain and a place to live. But it takes smart planning, including knowing the laws, financing wisely, verifying papers, and choosing the right location. If you want a builder in Kerala who meets all these needs, consider Asset Homes. With strong experience in Kerala’s real estate market and being a renowned real estate builder, known for its commitment to timely delivery, superior construction quality, and customer-centric approach, Asset Homes helps make your investment safe and worthwhile. Contact Asset Homes today to turn a solid investment into beneficial returns.