Q: Who is ZR INFRA Ltd?

A: ZR INFRA Ltd., is one of the most experienced construction companies in the real estate marketplace, with the promoter having more than 30 years of rich experience in the field.

Q: Who are the promoters of ZR Infra Ltd?

A: ZR INFRA Ltd. has been promoted by Mr. Zulfi Ravdjee who is credited with having completed some of the most top notch and high quality projects in the city of Hyderabad.

Q: Where do I begin?

A: Being clear about your requirements is very important. Match these to the specifications of the project at hand. There is a lot more to consider besides the specifications of the home itself.

Q: How should I go about buying a home?

A: While buying a home, always do a background check on the builders & nature of land you deal with
a) Nature of Land – Land should be Non agriculture, clear title, free from all legal proceeding.
b) Nearby Area – Always see the surrounding development of your property by which you can easily access to your basic needs.
c) Know the builder - An established company with a history of sound construction and above-board policies would be the right place to start. Review their credentials.
d) Home Delivery - Consider the time taken for completion of the company's projects. If there are delays, look for a trend to these delays.
e) Legal Concerns - Find out if there are litigation's in any court in India against the company and if there are any criminal cases against any of the directors of the company.
After authenticating the reputation of the builder, it is time to look through the specifics of the project of your choice.

Q: Are there additional costs for some features?

A: Most quality projects come with a built-in set of amenities like swimming pool, gym and common recreation areas. There may be other amenities that can be added at a cost. Look for features that are taken for granted, like pre-connected telephone, TV and Internet cables, security systems, interior design etc.

Q: Should I be worried about any legal issues?

A: While purchasing a property, you have to look at the approved layout plan, approved building plan, ownership documents, carryout search, etc. It is advisable to contact an advocate before you purchase a property so that he can advise you.
Certain areas have specific commercial or residential reservations. Make sure you have all the details before you commit to a purchase.

Q: How do I finance my dream home and save on tax?

A: Finance plays a critical role in the purchase of your home. The important issues that are to be considered include modes of arranging finance and its implications on taxation.

Here are a couple of options -
a) Use your own funds
If the house is being acquired out of the sales proceeds of an earlier house, the exemption from the long-term capital gain tax on the sale of the earlier house can be claimed under u/s. 54. To claim this benefit, the new property should be acquired one year prior to selling or two years after the date on which the transfer of the earlier house takes place.
If the new house could not be acquired within a period of one year from the sale of the earlier house, the sales proceeds should be deposited in a bank or institution, which runs Capital Gain Accounts Scheme approved for this purpose.
Other issues also need to be considered. For example, if the person acquiring a house already holds another house, then every year, one of the two house properties would be deemed to be let out (u/s. 24) of income tax act and the let-out value shall be treated as income. Hence, appropriate tax planning should be considered.
Further, in the case of individual or HUF (Hindu Undivided Family), exemption is provided from long term capital gain tax u/s. 54F on sale of any long term capital asset, if sale proceeds are invested in acquiring a house within prescribed period.
b) Taking a bank loan
Interest paid on housing loan can be claimed as deduction under u/s. 24(b) to the maximum extent of Rs. 1,50,000 per year. Such limit is per person and not for one property. Hence, a loan can be taken in two joint names for one house to claim deduction of Rs. 1.5 lakhs each for both the persons repaying the loan.
Repayment of the principal amount of housing loan is also eligible for the rebate u/s. 88 subject to a maximum sum of Rs. 20,000/- per year. In taking a housing loan, the following issues need to be considered:
1) Bank or financial institution offering loan: It is generally safe to take a loan from one of the leading financial institutions.
2) Rate of Interest: The rate of interest on housing loans is currently (2006-2007) between 9.5% to 11.5% depending on the tenure of the loan, fixed/floating rate, credit profile of the borrower etc.
3) Fixed/floating: You can either opt for a fixed or floating rate of interest. The fixed rate is generally 50-75 basis points higher than the floating rate. The floating rate is linked to the PLR(Prime Lending Rate) of the lending institution.
4) Processing fees: A processing fee is charged by financial institutions for verifying the title report, financial performance, valuation of flat and so on. This fee can be up to 1% of the loan amount. During special periods like property exhibitions, banks and financial institutions offer special interest rates and waivers/concessions in processing fees, so buyers can benefit from such offers.
5) Tenure of the loan: The tenure of the loan should be decided by the buyer after taking into consideration various things like repayment capacity per month, earning potential over the next few years, other financial commitments like weddings, children's education etc. The expected outflow on property maintenance should also be considered.
Generally, housing loans are available ranging from 5 years to 25 years. Some banks also offer step-up housing loans which charge a lower EMI for the initial years which gets increased for the later period. Such loans are generally considered favorably by those house buyers who are in the early stage of their careers and who expect earnings to improve significantly over a period of time.
6) Other aspects: Consider the percentage of the cost of house that is available as loan etc. Some banks offer up to 95% cost of the house by way of loan. Another important factor is financing for the interior work, furniture etc. Some institutions have started providing a composite loan that extends over the cost of interiors and design.

Q: What are the documents I will have to submit to the bank?

A: Different banks require different sets of documents for processing a housing loan.
Following are some documents generally required by most banks:
1) Proof of Income: Salary certificates and form No. 16 for last three years o TDS certificate for last 3 years o Bank statements showing credit entries for salary/ professional fees received for past 12 months o Professional qualification certificates etc.
2) Title of the property: Copy of the property sale deed, Title report by a solicitor, Valuation report, NOC from the builder/condominium/society, Amenities agreement, if any
3) Other Documents: Proof of age - copy of passport, driving license etc., Proof of residence, Copy of ration card, passport, society letter etc., Photographs with signature.
Documentation required for guarantor, if any.

Q: Do NRIs need permissions to buy property in India?

A: As an NRI, you need no permissions to buy property in India. You can also rent out the property and repatriate your rental proceeds, subject to payment of taxes. Please remember that an NRI who is an Indian Citizen can sell his/her immovable Property (other than agricultural or plantation property or farmhouse) to another NRI. However, the transaction has to be routed through India only. In other words, the buyer has to invest in India by way of remittance from abroad through normal banking channels or by debit to his account maintained with an authorized dealer.
The sale proceeds of the property must be credited to your bank accounts maintained with an authorized dealer in India.

Q: Are there any procedures to buy property in India?

A: The Reserve Bank has granted a blanket permission to NRIs to purchase property in India for their residential and commercial purposes. There is also no limit on the number of investments or the quantity of investments that can be made in real estate. The immovable property can be purchased by inward remittances from any place outside India or through funds maintained in NRI accounts in the banks within the country.

All NRI investments in real estate or immovable properties are considered as transactions that get regulated under the FEMA (FOREIGN EXCHANGE MANAGEMENT ACT). It stipulates that before making a purchase a specified form called the IPI 7 needs to be filed with the central office of the RBI along with the title deed or any other certified copy of the document proving that the NRI has executed an agreement to purchase property within the country. The form has to be filed within 90 days of the purchase of property and has to be accompanied with a bank certificate stating the consideration paid for the purchase. Permissions are generally granted without undue delays if all the relevant papers are submitted.

Q: Are there any restrictions to sell my property?

A: There are no restrictions to sell your property in India. However, it is best advisable to consult the RBI website for more information as guidelines do keep changing from time to time.

Q: Are there restrictions to repatriation of realty returns or sale proceeds?

A: There are some restrictions and guidelines that RBI has set forth, and these keep changing from time to time. For more details on RBI's current guidelines related to repatriation, please visit the RBI's website.

Q: Can I, as a foreigner, buy property in India?

A: Persons who are not citizens of India, and companies (other than banking companies), which are not incorporated in India, are required to obtain prior permission of the Reserve Bank of India to acquire, hold, transfer or dispose of property. (Refer Section 31 (1) of FERA (Foreign Exchange Regulations Act, 1973). This also applies to partnership firms where one of the partners is a foreign national.

If you have other questions that are not answered here, please feel free to write to us at info@zrinfra.com, and we'll be happy to get you all the right answers!