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QUERIES ABOUT BUYING A PROPERTY IN GOA? |
FAQs
· What service can I expect from the estate agent in Goa and how much does this cost?
Many, if not most agents in Goa, just as anywhere else, work for the sellers, so are not obliged to mention the negative aspects of the property in question. Goandream prides itself on working openly and honestly, with the buyer AND the vendor, to bring to the buyers, quality and honestly, described properties, as that is where the need is in Goa, especially for buyers from abroad. We aim to look at every purchase of every property, as if it were our own, and have had to, on a few occasions withdraw a property from our listings due to the property itself or indeed the price becoming what we regard as not suitable for a fair sale.
The price is 2% of the sale price paid to us by the owner AND by the buyer, independent of the amount of work required.
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· Who can buy a property in Goa?
NRIs (Non Resident Indians) can and also anyone who is NOT of Indian origin. Non-Indians, presently, can buy a property, as long as they stay in India for 180 days in one financial year, (not necessarily in one go), and can prove it, ie visa and stamped passport, you can purchase a property in Goa. (The Reserve Bank of India are the granters of permission regarding foreigners buying.)
An overseas registered company can buy in the name of the company without any period of stay. Contact us by email info@goandream.com for our listed advocates (solicitors) for more advice.
What is an NRI?
Non-resident Indians and Non-resident foreign citizens of Indian origin are described as NRIs for the purposes of purchasing an immovable property in India, hence Goa.
You are an NRI if:
You stay abroad for employment or business indicating the intention to stay abroad for an undefined or uncertain time.
You hold a post in a UN organization or are an official deputed abroad by Central/State Governments and/or undertake Public Sector temporary assignments.
· If I am of Indian origin but am born and bred abroad, can I buy a property in Goa?
As long as you are basing your Indian origin on the Indian Citizenship Act of 1955, (57 of 1955), you can. Please confirm this yourselves.
For the purposes of purchasing an immovable property in India,
A foreign citizen (other than a citizen of Pakistan or Bangladesh, Afghanistan, Bhutan, Sri Lanka, or Nepal) is deemed to be of Indian origin, if:
He/she has at any time held an Indian passport.
He/she or either of their parents or grandparents were citizens of India by virtue of the Constitution of India or Citizenship Act 1955 (57 of 1955).
· Do foreign citizens of Indian origin require permission of Reserve Bank of India to purchase immovable residential properties in India?
No, RBI has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose.
· Are there any formalities I need to know about within the general permission given by the Reserve Bank of India to foreigners of Indian origin?
You are required to declare your purchase on form IPI7 within 90 days of completion of the purchase, along with proof of purchase and method of payment. This declaration is to be sent to RBI in Mumbai.
· Can a property bought in this manner be sold with the permission of the Reserve Bank of India?
Yes. Under the general permission granted by the RBI, the property can be sold. The only restriction is that if the property is sold on to another foreign citizen of India, the payment/s must be made into India or from NRE/FCNR accounts.
· Can the proceeds from the sales of such property be remitted outside of India?
If the property was purchased on or after 26th May, 1993, the RBI considers applications for repatriation of sales proceeds up to the consideration amount originally remitted for the acquisition of the property or up to two properties. This is as long as, the property is not sold before a full three years has past since the final payment/completion of purchase occurred. The RBI need to be informed on form IPI 8, 90 days before sale.
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· Can I expect my property to be well maintained, to reflect the standard of the property at time of purchase or will it be allowed to run itself into the ground?
The best way to be sure of the answer is, to see pictures of, or visit previously completed projects that are at least 2 years old to reflect the effect of the maintenance. Apart from checking for general cleanliness and functioning of the place, you also want to be sure that the buildings are built well to curtail any huge remedial costs. This would be key to a high appreciation in value of homes.
· Can I get a loan to buy a house in Goa?
Some mortgage companies in UK are happy to lend existing mortgage customers the money to buy a holiday home almost anywhere. The borrowed amount is simply added to your existing mortgage and is set against your existing UK property. Please ask your own lender. An alternative for persons of Indian origin is a home loan from one the Indian housing finance companies or banks, such as HDFC or ICICI.
· Are the public amenities like medical care equivalent to UK?
If you go to a state run hospital, you would be treated fantastically and be fine but would possibly have a little difficulty being understood by nurses. The doctors will all be fluent in English though. However, if you use private medical and hospital facilities, you receive quality medical care at a fraction of UK costs. The equipment is state-of-the-art and most Indian doctors in the specialist centres have either studied or worked abroad. Child birth here, at the most expensive private hospital was, 2 years ago, 250 GBP all in, including all the pre and post natal appointments, the birth itself and 3 nights stay.
· What are banking facilities like in Goa?
Foreigners to India are now allowed to open bank accounts, (NRO-Non resident ordinary accounts), making it easer for clients to access money from abroad, without the costs of drawing cash from a UK account from abroad.
· What are the educational facilities like?
There are local government run schools that are more often than not for the children from not very affluent backgrounds. Then there are a range of privately funded schools that are much cheaper than UK top notch private establishments, yet are their equivalent. Private tutors are very good and much more affordable than in the UK. The first language taught is English, followed by Hindi at the age of 7. The philosophy behind the teaching of PE as an important part of the education curriculum, has not been discovered yet but outside school there are many sports classes running.
· Will the title of the deed after purchase be clear and uncomplicated?
The appointment of a solicitor (advocate) is the purchaser's responsibility and will oversee matters in the interest of the buyer, just as in the UK. We have a small list of solicitors that have been given to us through recommendations, who frequently deal with purchasing for people from abroad, whether the buyer is in India or abroad at the time. Alternatively, personal recommendations are priceless, so make sure you feel your interests will be best served. The problems do not usually arise after the purchase. If there are issues, they arise at the very early stages, in terms of clear titles. We have never had a purchase going through and then found that the purchaser has a problem with previous titles on the deed.
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Disclaimer
Readers should take any advice from this list, at their own risk. Goandream accept no responsibility for any action taken, or loss occurring as a result of any advice/information in their guides.
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