When it comes to investing in real estate, the land is the most preferred form of
property. However, when buying land/plot it is important to keep some important
factors in mind, without which your investment might not be that sound as you wanted
it to be. In addition, in the case of a residential plot, you have a lot of flexibility and
you can build a home suited to your preferences and requirements.
Here are important things to consider before investing in a residential plot:
It is important that you determine the location of the plot by considering its distance to
the important areas within the city. In faraway areas with the least growth, do not get
tempted by less priced plots.
Size of the Plot/land:
If you are looking to buy a plot of land for living purposes at a later stage, it is
important to first understand your requirement. Make sure you verify how much land
you will need to create your dream home (built-up-area). Location and soil are the
other two vital factors to consider while buying the plot.
Check the real value of the plot:
It is best that you do your homework well and consult a real estate specialist to assess
the value of the plot/land rather than blindly rushing in to buy a plot that seems
cheaper to you. You must negotiate well with the seller on the piece of land after all
the initial checks.
Do you buy from an individual seller or from a builder? Are you sure that the land is in
their name if you purchase it from a builder? The first thing you want to clarify is
whether there are legal rights for the seller or the builder to sell the property. This is
important as there are issues where sellers and small builders sold plots that they
don’t even legally own.
Approvals and licenses:
Ask the seller or builder to show important documents/approvals as proof that they
have the rights on the property. Look for a sell certificate, a previous title deed,
property tax receipts, a Khata certificate, and an encumbrance certificate.
Go with a reputed builder:
Ensure that you invest in a plot of land by a reputed real estate builder. This is the best
way to avoid property frauds and future construction roadblocks.
The size and shape of the plot:
These factors are important not only because they affect the price or resale value of
the property but also because they have a big impact on the quality of your day-to-day
life. The ideal plots are square or rectangular because they are auspicious. Aside from
shape and size, also consider the direction of the land. Try searching for properties
facing north, while plots facing east and west can also be considered.