Property in Yercaud/Salem Area

palomnik

I'm interested in finding out anything about the purchase of property in Tamil Nadu, particularly in the Salem area. What would the prices be in that area? It's a bit off the beaten track for foreigners.

Also, what, if any, are the rules restricting foreigners from buying in Tamil Nadu?

Nick-H

You must know about the general rules on foreigners buying property in India, as you have posted to the Goa property threads.

So you will be aware that it is very, very difficult.

As far as I know, TN does not have any rules over and above the national rules.

TN prices will vary from peanuts in some far-from-anywhere village to crores in parts of Chennai.

palomnik

Nick: Thanks for the information. I see you live in Chennai.

What do you think of this bit from another thread:

Purchase of Immovable Property in India by Foreign Citizens of Non-Indian origin/Foreign Companies
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Foreign citizens of Non-Indian origin (whether resident in India or not) and foreign companies including trusts, societies and associations incorporated/ registered abroad will be permitted by Reserve Bank, on application, to acquire immovable property in India, provided the following conditions are satisfied :-

1) The property to be purchased is for residential use only.

2) The consideration for purchase of the property is met out of foreign exchange remitted from abroad in any convertible currency through normal banking channels.

3) Income accruing by way of rent from the property purchased, or the sale proceeds of such property/income arising out of investment of such sale proceeds at any future date shall be credited only to the Ordinary Non-resident Rupee (NRO) account of the non-resident purchaser.

Applications for necessary permission for purchase of immovable property in India should be made in form IPI 1 together with the documents indicated therein to the Chief General Manager, Exchange Control Department, (Foreign Investment Division-III), Reserve Bank of India, Central Office, Mumbai 400 001.
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This seems to contradict everything I've heard previously. Do you have any views on it?

Palomnik

Nick-H

Off-the-top-of-my-head....

I think it comes from the previous, now out-of-date legislation. (called FERA, I think).

The currently applicable law is FEMA.

It's referred to all over this site, especially the Goa sites.

palomnik

No doubt you're right. It sounded too good to be true...

palomnik

Nick:

Any other areas of the state you'd recommend? I understand you live in Chennai, correct?

Nick-H

Correct, and I'm afraid I have no idea about property elsewhere.

But, where-ever, you will hit this catch-22 situation that the government has created:

1. You are free to purchase 'immovable property' once you become a resident, the qualification for which is to have spent 182-plus days in India in the previous tax year. You need also to show an intention to stay and a purpose which is not tourism.
2. You can only spend 180 days in India on a tourist visa.
3. Time spent on a tourist visa is not held to count any longer

Gotcha!

(the accurate requirements are on the RBI site FAQs page, and are talked about at length in the Goa threads. Just giving an idea here. Don't quote me!)

palomnik

NIck:

Bearing all that in mind (I'm contemplating a lease) - what about the rest of the state? What are the nice towns to live in? Less tourists, but nice quality of life? Please understand that I'm not really interested in having amenities of western civilization if the area is attractive and the pace of life is relaxed.

I realize I may be asking a lot but you seem to be the best resource I've seen on here, since you live in Chennai.

Nick-H

Unfortunately that doesn't at all qualify me to talk about living anywhere else outside of the city --- entirely different kettle of fish, and I have my doubts that I'm 'ready' for rural or small-town India yet!