Property buyers choose to buy land either as a financial investment or to construct their dream home. Housing prices are skyrocketing as needs are increasing daily. Therefore, purchasing property today requires a significant investment, and people invest their entire life’s savings in it.
However, the high cost of property is so high that often you’ll not be able to gather sufficient funds even after investing years worth of saved money and you might have to take a home loan. Repaying the loan also involves a great drain on your finances over a long period of time. It is thus a sensible idea to invest wisely so that you get your money’s worth.
So before purchasing a plot, you must first consider some essential aspects.
The first check you must do is whether the land you want to buy has been evaluated correctly and has a clear title and legal deeds.
Next, check if the seller has actual selling rights of property. Examine the title deed of the land and validate if the land is in the seller’s name and nobody else’s. Get the deed analyzed by an attorney if possible.
Take a look into any contingencies and find out if the land has the necessary facilities for residential development, such as the possibility of public road construction, electricity & water supplies, etc..
Ensure that the required development authorization and building approvals have been taken from the appropriate authorities.
Examine the master strategy for the plot to confirm the land-use zone. If necessary, conduct a land study before purchasing to understand any legal conflicts over property limits, titles, easements, or other concerns.
Before you actually buy the plot,ensure that you are clear on its intended purpose; whether it is an investment instrument or earmarked for immediate construction.
Following are a few essential points you have to carefully consider before buying a plot or land:
Plan Your Budget
First and foremost, know your budget. Unlike buying a readymade house, buying land for development is far trickier. It is necessary to set out a budget beforehand and manage your expenses from the beginning. You can even reserve some surplus cash as unanticipated expenses.
Find A Good Location
Whether you are purchasing for financial investment or building a house, the location of the plot is crucial. Locations close to business centers or city centers are often prime locations. Check if there are schools, hospitals, banks, markets, and other civic amenities nearby. Check the available public transportation options close to the location.
Keep Utility in Mind
Purchasing plots, even for residential purposes, can be utility driven. Residential properties are highly valuable in cities, but if you want to purchase residential land, the suburbs of a city are your best bet. These areas are likely to be developed as the city expands, increasing returns on your investment manifold.
With an ever increasing growth in the tourism industry, buying a residential plot in not so popular tourist destinations can also give you significant returns if you choose to convert the place into a homestay. A residential plot near an industrial township can bring in high returns in the form of rent or lease. The options are endless.
Contact Right Advisors
Real Estate developers and consultants can supply you with listings of plots and properties up for sale. Real estate agents can help you find good properties in your location of choice and within your budget. Additionally, they are legally accountable and can assist you with most of the paperwork necessary for buying residentialplots. Check whether the builder is of sound financial condition and has a good track record of successful developmental projects in the past.
Loan Assistance
Financing options are available for both plot purchasing as well as for construction from different banks, non-banking financial institutions, as well as private lenders. If you choose to take a loan for construction of a house on a land, you can even get tax rebates.
Construction-Worthy Land
While all land being sold might appear to be construction-ready, it is crucial that you find out just how much can be built. If you are purchasing a plot for your own residence, will the land hold up to the plans you have for your dream home? Is the land stable for construction of multistoried buildings? Topography and soil condition are two very important factors that you must look into before your purchase.
Zoning Regulations
When out the plots you intend to purchase, have a discussion with a real estate professional and the local zoning board regarding the regulations you may need to take into account before development. Ecological aspects might dictate the actual placement of the building on the plot. Future development of the neighbourhood might affect the value of the property. Find out if there are regulations regarding minimum distance from roads to be maintained or maximum area limits to adhere to legally.
Keep the above points in mind to ensure you get the best returns on your investment. In addition to the above, take a thorough look at the area around the property you want to purchase. Enquire your real estate agent or developer regarding it. You cannot anticipate everything regarding the future, but a little research will help you to make an educated decision regarding the land or plot you wish to purchase.
