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News & Views on Indian Real Estate

Thursday, June 05, 2008

Banned from buying houses, foreigners opt for long lease

With the Goa state government ‘banning foreigners from buying properties in the state’, local builders have fine tuned their strategies and are promoting five-year leases among tourists. There are no official figures to prove the trend, but lawyers and builders agree that this is definitely increasing, with several builders from the state organizing road shows and exhibitions in UK to attract customers to Goa. But something needs to be done as houses are being leased to foreigners at a huge price, making it difficult for Goans to invest in homes. Purchasing of property by foreigners has come to a standstill and it’s difficult to execute any deed of sale as the procedure is no longer simple, thus forcing them to seek options like lease, if they intend to stay for long periods in the state. Non-residents require permission from Reserve Bank of India to purchase a house or property in Goa. “But if the foreigner stays 182 days in India and shows the intention to reside for indefinite period, then they are considered a resident of India and they don’t require RBI permission to acquire property in India. The risks for the foreigner are high, as there is a possibility of being cheated and some do complain of fraud. In case a foreigner pays a high amount of security deposit then the safety of that deposit is at a high risk as the foreigner doesn’t have any legal sanction to occupy the house for more than five years.

Anonymous said...

But is that good for india.I foreigners want to buy the home in India so after some paper work and all the formalities can be done that deal fulflessed

Joao Sebastiao Manuel Honorato Menezes said...

i hope this news gets around and more and more foreigners a scared out of buying property in Goa. In fact i am planning to shunt them out anyway...

Want the real Goan view? Check out www.goanviews.blogspot.com

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