To help readers keep pace with what’s happening in the real estate sector, Mint’s Q&A appears every other Monday.
My cousin is a US citizen and is working there. He wants to shift base to India in the next three-five years and wants to purchase a property close to his native place Belgaum. His father has a property in Kochi, which he had purchased a long time back and wants to sell now. I am asking some questions on their behalf: Should my cousin buy a property now? Will he be able to get a home loan? If yes, how much loan can he get? Can your company help them in selling the property in Kochi?
Yes, this is a good time to buy property in India. Property prices have bottomed out and, in fact, have started rising in all metros, especially Mumbai and Delhi. Further, home loan interest rates have also come down sharply over the past couple of quarters and may be almost at their bottom.
Almost all institutions provide loans to non-resident Indians (NRIs) and persons of Indian origin (PIOs) for the purchase of a dwelling unit in their homeland. And, therefore, he will be eligible for a home loan. The amount of loan he would get is a maximum of up to 85% of the cost of the property, depending on his repayment capacity and the property being approved by the lender.
Yes, we could assist them in selling their Kochi property through our subsidiary HDFC Realty. This is a team of real estate professionals who specialize in facilitating buying, selling or leasing of residential and commercial property in India. The HDFC Realty team will help you make the most appropriate decision.
I approached a leading bank to check my loan eligibility. They informed me that based on the combined salary of my spouse and me, we are eligible for an approximate amount of Rs60 lakh. We have decided to buy two properties—one costing about Rs45 lakh, another about Rs12 lakh in Pune. Will we get two loans for two different properties at the same time?
Housing loan eligibility is essentially based on the repaying capacity of the borrower. Hence, you could apply for loans for both the properties at any point in time as long as you have the capacity to service the loans.
Renu Sud Karnad is joint managing director, HDFC.
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