Buying land is not the same as buying a constructed property. Buying land isn’t just about exchange of money between a buyer and seller with basic documentation. It is a lot more than that. Buying a plot in India can be a tricky affair and needs due diligence to ensure the money invested is safe and secure. Here are a few things to keep in mind:
Documentation and Due-diligence
While buying a plot of land, first it is important to establish the identity of the seller. We must check the background of the person, the credibility and the nationality as well. In case of joint owners, the identity of all must be established. Along with this, documentation in case of land purchase requires careful attention. We must be aware of land frauds that are rampant. Once the plot is finalised, we must check the title deed. The deed must be clear and unambiguous. If you plan to construct on the land bought, the FSI norms must be clear. Along with this, the release deed, encumbrance certificate and property receipts must also be in place.
Quality of land
It is important to conduct several tests including soil testing to check the weight bearing capacity of a plot of land. The chemical and physical composition of the soil must be checked. Based on the soil test reports, one can determine the type of construction along with the type of materials that must be used on the plot to ensure safe and effective construction. There are other tests also that are conducted to determine the soil quality like gravity test, moisture test and so on. An expert must be hired for these testing services and also to judge the efficacy of results.
Location and surrounding
Along with documentation and others checks, another important aspect to consider is the location of the land. We must never take this decision in a hurry. A plot purchase is a big decision and often involves a huge capital cost. It is important to understand the why of buying a plot at a certain location. We must know whether we are aiming at building a residential or commercial structure, use it for agriculture purposes or for industrial purpose, or simply for the purpose of resale. The zone in which the land falls must be known. Local zoning laws must be taken care of.
Accessibility
One of the most essential things to always consider is the accessibility of the land from nearby areas. We must check how well connected is the plot of land from all major junctions. The road connectivity, highway connectivity and even the condition of roads must be considered. It is a good idea to invest in a plot which is connected well with TP roads, industrial or residential areas and must have a solution to the basic needs of everyday life.
Future development
Always invest in a place which is about to get developed. The plot that you buy must start giving adequate returns and appeal over next 3-5 years. If you have to wait beyond that, it just might end up being a dead investment. Areas that are well connected must be the first choice. An upcoming area where development has already happened in a particular belt is favourable.
You try to make something like Dubai developed in palm.