Buying land is the most preferred and most reliable form of investment when it comes to investing in the real estate industry. Also, due to the outbreak of the pandemic, demand for plotted developments has skyrocketed as self-owned homes, villas, or row houses, provide better social distancing as compared to apartments. People wishing to buy land for their personal use or as a form of investment have to be aware of certain factors that help make the process of buying simple.
Paperwork
Paperwork can be complex owing to new terms and due to indulgence in never before like experience. However, it is one of the most significant processes to ensure secure ownership of land. The very important paperwork you’ll be needing to take care of is – Title deed. This document ensures that the seller of the property has undisputed legal ownership of the land to be sold. Having a clear title helps you own a property through an authentic process. Be it agricultural land, residential plot or commercial investment plot ensuring no unclear deeds is a must. A clear title deed once received should be checked, scrutinized thoroughly and one must not accept a photocopy of the title deed. The land must be in the name of the seller and must be checked for having full rights to sell the land. One can cross-check the authenticity of the document by running a ‘title search’ on the registration website of the state government. A lawyer can be consulted to ensure the same. Another document that helps you confirm if the land has any legal dues pending is – Encumbrance certificate. One must check the encumbrance certificate for at least 30 years. A resale certificate is issued by the bank which ensures that the seller has cleared all the loans on the property. Having this certificate improves the credibility of land being debt-free.
Land use
One of the biggest risks that buyers usually face is whether they are buying agricultural land or one which is meant for residential projects. Cities often expand rapidly with no master plan and subsume the suburbs including vast agricultural lands. Agricultural lands are usually closer to the city and are priced lower which should be alarming. So, one must check with the revenue office of the zone before one chooses to sign any land deal.
Purpose and location
Different purposes of buying land set parameters for deciding the location. One panning to build a home should strategically lock a location that is near the workplace. A farmhouse or weekend getaway home can be constructed far from the city. One planning to develop the land for commercial purposes must consider hotspots in the city. Varied structures serving various purposes demand different locations and hence one should be clear with the purpose of buying land.
Transaction obstructions
Usually, circle rates do not match market rates of the area and hence land transactions may demand high cash component. This can leave you in a challenging situation as banks may not fund the entire cash required for the transaction, in case you are taking a loan to buy land.
Lack of tax benefits
Banks offer loans mainly for residential plots located within the municipal limits; even there, they offer only 70% of the total value of the land and the buyer has to arrange the rest.
At TMR Group, we uphold the value of transparency to not just have a transaction with our customers but to build an everlasting bond. We understand the significance of legal processes and hence our team ensures that each of our transactions happens through proper guidance. Even if a new buyer is not aware of the terms and functionality, our team members spell each term for them to understand and take steps accordingly to ensure seamlessness. Having premium plotting sites at Hyderabad, we have been able to establish healthy bonds with our buyers who are getting benefitted from their association with TMR Group. Come, join us and multifold your growth journey!