MUST DO THINGS BEFORE INVESTING IN RESIDENTIAL PLOTS

Introduction

The majority of individuals or families aspire to buy a home within the city, an apartment, or under-construction apartments, ready-to-move-in properties, or plots depending on their needs and preferences. If you are constrained for time, then apartments for immediate sale are your most likely choice. For example, buying plots brings in better appreciation value. Moreover, it gives you the flexibility to construct a place that is customized to your needs. Most often, people also invest in residential plots for purposes of investment. Irrespective of what type of real estate investment you decide to go with, you must weigh the risk factors and prepare yourself with enough facts to make an informed decision. Think about it. If you buy a second property in the hopes of making a quick buck in the future, there is a possibility that you may not be able to dispose-off the property at a time you anticipated due to various reasons. Transactions related to real estate take their course of time.

Investing in Real Estate: Must do things

First decide why you need this land and what you really plan to do with it. Are you going to construct a mall, a retail space, or a mixed retail and residential building? Depending on this need, your investment strategies will also change.
One of the key aspects to look into before buying residential plots is the location of the plot.

1.  It does not matter whether you are buying the plot for resale or to construct a property on the land.
2.  Location matters. Infrastructure support such as drainage, sewage, roads, and access to transportation is huge brownie points for the plot value.
3.  Explore the area and the surrounding neighborhood to get a sense of how well the area is likely to develop

The next big factor is the size of the plot. The legal document should mirror the exact dimensions of the plot you are investing in. So measure the plot and verify the size including the soil in the plot. This will prevent future legal battles including unwarranted encroachment of land.

You are now past the first few barriers to your purchase. Have you checked the documentation of the land such as title deed and encumbrance certificate? Documentation is critical proof that demonstrates that the land is not disputed and is registered legally under the said-buyer’s name.

1. The title deed of the property should clearly indicate that the seller is authentic and that the plot is indeed registered in his or her name. This also implies that the seller has legal authority to sell the specific plot or property.
2. To ensure you are not taking on any left-over loans or any such financial take over, check the Release certificate. The certificate basically tells you that there are no such loans or dues pending on the plot.
3. One of the most important real-estate documents is the Encumbrance certificate. It clears the property from any legal or monetary hassle.

As a cautionary measure, you must also have the documents verified by a lawyer who specializes in real-estate. Ensure all documents related to the property are thoroughly verified.