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Important Things To Know About Investing In A Plot

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Important Things To Know About Investing In A Plot

Purchasing a plot of land is one of the most important investments that an individual makes which requires a lot of planning and research

With the growing industrialisation and urbanisation in various parts of the country, the availability of land is decreasing gradually. According to experts, investing in a plot within the next ten years is the best time to invest for a very high return of investment. According to some estimates, the landholdings in India is estimated to be over Rs 1,14,000 crore and is expected to grow much more in the coming years. While some investors prefer to invest in a plot in the urban area, investing in a plot in the rural area is also profitable as it can be put to various types of uses.

Thus purchasing a plot of land is one of the most profitable investments that an individual makes and real estate experts advise that an individual must start making such investments from a young age instead of investing in their late 40s.

RealtyNXT lists in detail the various things that needs to be kept in mind while investing in a plot.

1. Ownership History

Investors must be careful about the land that they are interested to purchase. They must research and find out regarding its ownership history and any legal disputes associated with the land. Although disputed lands may be priced at very low prices, investors interested to purchase it must know about the various titles and rights associated with the land and the long term benefits of purchasing such a piece of land. Therefore, the history associated with the land is important to be known by the investor.

2. Location

Those looking to resale the land must keep in mind the location of the land and the connectivity and infrastructure around the plot of land. Investors who purchase the plot for personal use must also keep in mind about the neighbourhood features of the land as it is very important to have a healthy and safe neighbourhood around one’s house. Thus, location plays a very important role while selecting a plot of land to invest in.

3. Size

End-users of a plot of land must plan about how they want to use the land after purchasing it. This will help them decide about the perfect size of land that is required to meet their needs. The size is an important determinant in making the full use of the land that is purchased. One must also ensure the rate at which a similar plot of land is being valued at so that the investor can come to know if the price that they are about to pay for a land of a particular size is feasible or not. 

4. Approval

Investors must know if the land that they are about to purchase has been approved by the city development corporation. One of the effective ways to verify this is by requesting a copy of the approval documents and consulting a lawyer regarding it if necessary. Another thing to keep in mind is that the previous property tax receipts and bills must be taken from the previous owner. 

5. Verifications

Some of the important documents that need to be verified before purchasing the land are the title deed, encumbrance certificate and release certificate. The title deed helps understand if the buyer is the legal owner of the property and has the rights over it. The encumbrance certificate verifies that the land has no legal disputes and unpaid dues. The release certificate makes sure that any loans taken for the land have been repaid and is eligible to be resold. 

ALSO READ: Mumbai Likely To Have More Land For Affordable Housing

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