5 Things to consider before investing in a Plot

For many of us, investing in a piece of land is traditionally considered as a source of security and stability as it is a tangible asset with its value being more stable than other investments. It is also a source of pride and a sense of accomplishment for some, a way to honor the family history and legacy as it will be passed down through generations. 

If you are dreaming of a cocooned shelter for you and your loved ones or if you are desirous of a plot of land that will yield exponential returns in the long run, here are a few factors that lay the foundation for the plot purchasing process. These practically realizable dreams come entangled in a myriad of challenges often leaving the buyer perplexed and confused about the crucial factors to be considered before taking the plunge.

With these below pointers, we try to simplify the thought process and enlist the 5 things one should take into consideration while investing in a property.

Clear title free of any disputes

The step that gains paramount importance is to ensure that the seller or sellers have the absolute right to sell the land. With access to historic records being made easier, verifying the legal history of the property and its adherence to the family tree forms the foremost step in the process of buying a property. Along with this, the encumbrance certificate, the certificate which confirms that the land in question is free from dues, for the past 30 years may be obtained. Necessary approvals from the local development corporation/municipality, and property tax paid receipts often conclude the legal verification process.

Location and Accessibility

The most preferred choice of location should be one that is in close proximity to educational institutions, workspaces, healthcare providers, and facilities that meet your basic needs with robust last-mile connectivity. Basic infrastructure including clean and well-lit footpaths, street lights, drainage networks, parks, or open green spaces in the vicinity will make the property closer to being habitable. Having said this, if the property is being bought solely from an investment perspective, all of the above factors may not be applicable.

Access to clean water and pure air

With groundwater levels depleting, with dependence on borewells increasing with every passing day, and overcrowded cities craving for pollution-free air, access to ample groundwater and fresh air has become a luxury. A location in proximity to a water body results in a good water table, thereby reducing your dependencies on borewells and water tankers. Not just that, a good water table level also ensures that the quality of water you receive has much lower TDS levels (total dissolved salts) which equate to a lesser load on your water purifier systems. This coupled with the availability of fresh pure air will make this a blissful investment.

Access to finance

Short-listing a property that meets the above criteria alone isn’t sufficient. The property thus selected also needs to be approved by leading financial institutions that can lend the required funds enabling you to buy your dream property.

Being approved by multiple financial institutions also indicates the good health of the property.

Verify the precise boundary of the property: Before finalizing the buy, it is vital that you survey the property through a qualified, reputed (and, possibly referred) quantity surveyor, to ensure that the dimensions and extent of the site that exist on-ground match what’s specified in the legal documents and sale deed.

The above 5-point check, if done appropriately, should serve as an enabler in your process of identifying, short-listing, and finally buying the property.