Investing in real estate takes many forms depending on the purpose of the investment, the budget, and overall plan. The different forms of real estate investment includes an apartment, a plot to build a house of your dreams or using it for other purposes such as agriculture, buying a villa which is the next big thing touted in the real estate business today. Living in a place to call your own carries a certain amount of prestige and social status. So when one buys a plot of land to construct a place they have always dreamed of, it indicates very many things including stability, prestige, and
Things to check when investing in Plots
Buying a plot, as we have already discussed, is an excellent option. However, there are a number of things that the investor must look into before considering buying a plot. The process and procedure involved in buying a flat or a plot takes two different paths and requirements. There is no doubt that the value of a plot appreciates much faster and fetches higher returns than other types of real estate investment.
In India, since the real-estate sector is not organized, the investment is more open to loopholes with the law such as instances of land grabbing, incorrect or fraudulent paper work and similar issues. In light of these factors, one of the most important things to keep in mind is the need for a legal opinion to run through the documentation and verify that there are no legal entanglements with the plot in question.
Should you consider buying a plot against a bank loan, then you must plan your finances well in advance. Any loan defaults will reflect poorly on your overall credit score and will have an adverse impact on any future loan applications, even if it is as simple as a car loan. Further, you must also do your research on the rules and regulations governing bank loans since every bank as its own protocols. Some banks, for example, require that the builder must start construction within six months of acquiring the loan.
There are dime-a-dozen advertisements that advertise the sale of plots with a lot of marketing jargon. Do not get swayed by the prospect of buying a plot at throwaway prices. Check the location of the plot first. Location has a heavy say in the value of the plot. Since plots in cities have become scare and terribly expensive, the sale of plots is moving to the outskirts. However, some locations offer potential for good infrastructure development, including social and public services. Absolutely important is to check for the sewage, drainage and water systems before signing on the dotted line.
Finally, check the size of the plot and verify the key documents such as title deed, encumbrance certificate, approval from the necessary authorities’ including all original copies related to the plot.