There are several typical ways to buy property as an Indian citizen, and each one affects your rights and obligations both before and after the transaction.
In every situation, you’ll probably also need a mortgage or home loan. Depending on the type of residence, expenditures may also frequently include transfer tax and remodeling fees, which are especially significant when buying an older home.
Acquiring an apartment
It’s likely that if you’re purchasing an apartment, you’ll also be buying stock in a real estate developer. Find out if expenses like hot water are covered by the monthly fees or if you’ll have to pay extra for them. Transfer tax is charged.
Purchasing a home
Similar to most other nations, if you purchase a home, you are responsible for its upkeep and renovations. You should also take note of the property’s surroundings and surrounding land. Transfer tax is charged.
Part ownership
Shares Renter buys 10 to 15% of the unit upfront. During the part-ownership phase, market changes won’t affect the final price. As a lessee, the renter pays the property owner. The rent doesn’t increase the apartment’s price. Residential lease rules determine the tenant’s responsibilities during this time.
You can raise your own during the presidential term. Some apartment owners’ agreements state when you can buy more shares. You can only buy 49% of shares per year.
After 5 to 12 years, the tenant can buy the apartment outright with the interest-subsidized loan. The renter’s initial investment and any additional investments are deducted at this point. The Housing Companies Act says who’s responsible for maintaining a tenant-owned flat.
Real estate transfer taxes are based on the original purchase price of the property.
Purchases by foreigners or non-residents
Beginning January 2020, foreign buyers including Indian citizens must obtain approval from the Finnish Ministry of Defence before purchasing property in Finland. However, when purchasing shares in a housing company, which is how the majority of apartments are owned in Finland, a permit is NOT required.
When looking to buy a home in Finland, Indian citizens should get in touch with a real estate agent who can guide them through the process in English or many other languages.
Transfer Tax
Real property transfers, such as the sale of a house with land, are subject to a 4% transfer tax; securities transactions, such as the purchase of shares in a housing business when purchasing an apartment, are subject to a 2% transfer tax. In the case of securities, the 2% is based on the overall debt-free transfer price, which includes both the sale price and the balance of the apartment’s outstanding housing company debt.
The buyer is typically responsible for paying transfer tax. Payment is expected for securities within two months of the contract’s start date and real estate within six. When an estate agent acts as an intermediary, the transferee is responsible for paying the tax at the time the transfer contract is signed.
