Investment on Land and how to go about it !!

Investment on land plays a prominent role into one’s life as it create a financial stability, confidence within a person and a sense of peace to feel his achievement in life. With several ideas and planning a person decides to invest in plot or land but the question which arises in him is which is the safest platform/place with minimum risk and maximum returns? With current trend of several fake documents and illegal properties up for sale which a normal investor does not recognize it makes him or her move to a different investment modules like fixed deposits, chit funds, gold and other savings schemes offered by different financial institution in our country.

Buying a piece of land is dream of every individual based on their assumptions, calculations, planning and so on and forth….. But the transaction or the buying process are made complicated by various means. Keeping in mind the strategic location where returns are on higher side, trusted developers or individual who are selling their piece of land along with the guidelines which has to be followed in order to acquire the land and various usp’s to judge the potential of the locality.

Yes a perfect homework before your investment in land is required, firstly you have to determine yourself and ask yourself first that do you really want to invest in land? If the answer is yes then continue reading to complete your transaction in the safest manner of buying any land anywhere in the country.

Homework should include your preference first as in what type of land you want to buy say it an agriculture land to promote farming, residential land in the outskirts of the city or within the city to make your dream house or a piece of investment with your hard earned money to reap return during your retirement period.

Land buying process comprises of several things which has to be strongly followed

·         Identify the location which you want to invest in; followed by do some research online based on the current market trend and the ups’s of the locality.

·         Shortlist the active players in the locality preferably a well-known one, to identify the “well-known one” simple steps to follow - check with his active participation in the locality as to from how long are they participating into the localities growth? Their previous projects? Small background checks on their previous projects to find out if there are any complications which people are dealing with or dealt with along with his reputation to handle clients. If the answers are positive then you have your developer or individual from whom you can take a chance of visiting their land.

·         Find out the price trends of the land by inquiring a local in that particular zone, dig-in to his competitor to reconfirm your assumptions.

·         Legal document checks- go through a known reliable advocate to verify the papers of the land which you have shortlisted and make sure that you don’t go by a verbal approval on the advocate’s opinion get a signed legal opinion of the report and also have paper advertisement displayed in any of the local newspaper to avoid unwanted claims on the property.

·         Display a transaction notice board on the land if it is within city limits or if you’re buying the land from an individual.

·         Approach your banker if you’re running short of funds to buy the land in case you’re planning to buy an agricultural land I don’t think the banker would fund you as agricultural lands cannot be mortgaged in India.

·         Make sure that you get your drafts prepared by an advocate whether it is the initial agreement of sale which takes place when you pay the seller an amount towards finalizing the transaction or the final sale deed which is a vital part of documentation towards registration.

·         If possible get a signed copy of the receipts of payments apart from the sale deed and remember to keep your advocate in the loop while completing the registration process or the payment process.

·         Take possession of your land by securing the boundaries by any means either by fence or solid block compound along with a trespassers notice and make sure that your seller is present during this process. 

·         Approach the local municipal authority to update your records and complete the process of transfers.

·         During construction assign a valid registered contractor for construction who will help you with your building plan approvals and other permission required to complete your construction without hassle, hassle in sense there would be a whole different process from the start till the end of construction such as building plan approval, electricity and water connection.

Yes this might looks like plenty of homework but is definitely required to safe guard your investment in the best possible manner.

All the best with your investment on land.