For real estate investors, buying a plot of land is a sure shot way to ensure long-term returns. Land is a stable asset that has the potential to appreciate many times its original value. Compared to other property types, a plot of land gives a better RoI and considerable flexibility in how it could be used. It’s a really safe investment if you buy the right plot. And we are here to help you do just that! Keep this checklist handy when you are evaluating a land plot for purchase:
- Choose a suitable location. The first important question to ask is ‘Where?’. A plot is always branded by its surroundings. If you are looking forward to a promising ROI, it is important that you purchase the plot in a developed or developing area. Population, public transportation, and proximity to employment and commercial hubs are some of the important factors to consider. A plot located in a remote area could easily fit into your budget, but it is only money down the drain if that area has no scope for development in the foreseeable future.
- Size matters. The size of the plot solely depends on the purpose of your purchase. If it is for a personal use, you only have to check your requirements and your budget. But for a business use, it is important to consider the nature of the business and the market requirement.
- Speaking of the devil (Seller), choosing the right one is most important. If you are buying from a developer, take time to verify their past work and credentials. Talk to people who’ve already bought plots in the same locality. Beware of duplicate listings and fake profiles. Today all the necessary information to verify the authenticity of a plot can be easily obtained online. You can use the Zaasna portal to scout for verified sellers and property listings.
- Peg it at the right value. Did you know, every second person that buys a plot is likely to pay much more than the plot’s worth? Don’t fall in the same trap. Today, there is a huge variation in pricing and you can find a wide range of offers when it comes to plot purchase. It is not just the size but also the location, quality, water-yielding capacity, land evenness, and many more factors that determine value. Do your homework beforehand to assess the actual value of the land or consult an expert if you are not sure.
- Investment vs Return. A crucial step after considering the above factors and before moving forward with the registration is to check the RoI. What is yoru expected RoI? Based on proposed development in the area, what are the projections for property appreciation? Does the size of your plot make it suitable for a commercial sale? Consulting an expert might give you a fairer idea of what to expect.
- Become a rightful owner by law. Verify the Title Deed. Take legal advice to make sure the land is clear from all ties before it is transferred to your name, not leaving room for any future disputes.
- Buying on resale? When you are buying a plot that has been up for resale, make sure a Release Certificate is issued to the plot. This ensures you buy a debt-free land and avoid legal hassles later.
- Get an encumbrance certificate No point in buying a plot which maybe up for prison time. The Encumbrance Certificate is an assurance letter that you receive stating that the plot is not held down by any sort of legal debt.
- Check the paperwork. Along with key documents listed above also ask the seller to provide all the previous tax receipts and bills of the plot. This saves you from any future tax-related troubles.
- Approvals from Local Authority? Check! This is the final legal step to be checked off in your list. The plot should have a clearance from the local body operating in your respective city. Along with that, it is also necessary to acquire land-use verification from the city’s local authority.
Investing in real estate, especially land is the most promising investment there is today. It is an asset that brings you guaranteed lucrative returns. Yet, many people especially from the middle class fear to pursue it. The reason they take a step back is the huge investment and the high risk involved in case of a wrong decision. Getting acquainted with the sector could help everyone make informed decisions about land purchase and confidently take a step forward. Follow the checklist above to ensure you get an opportunity to be an owner of your secured future.