When it comes to investment, people are always likely to suggest one invest in property and land. For good reason! With the increasing global population, the land is always in high demand, and prices are climbing on the regular, and without a doubt, can reap handsome benefits and returns in the future.
Purchasing land can, in several cases, be a cheaper option when compared with residential or commercial properties. It seldom depreciates and provides the owner with the flexibility to modify, construct, etc., according to individual requirements. (within the zoning laws)
That being said, it can be a tedious process as there are several factors one must consider. So, we’ve made it easier for you- read on for a few Dos and Don’ts when buying land.
Dos
Inspect the location
Several buyers might get swayed by the low prices and invest in properties without inspecting the location properly. It’s essential to evaluate the growth prospects of the area, the beauty of the surrounding area, as well as the terrain and topography. Does it align with the kind of property you intend to construct there? Also, evaluate the neighbourhood well and the prices of the other plots. Altogether, this will give you a fair idea of whether the area can prove to be a good investment or not.
Operate within your budget
Before going land-hunting, knowing how much you intend to spend and what your goals are is important. You should have enough cash flow, as often proof-of-funds might be required before the contract is signed.
It’s important to remember that this won’t just be a one-time purchase, but you would need to think about the regular maintenance and upkeep required.
Check the availability of utilities
Often, buyers do not ask about the ready availability of water, electricity, drainage, and more when they are purchasing land. It seems unimportant, as there is no immediate requirement for vacant land. However, utilities can increase or decrease the value of a plot drastically and might create problems later on when you want to construct or sell.
Check land approvals and legal verifications
Paperwork might seem scary, but it is a necessary process for a purchase as significant as land. Check for important documents such as the title deed, property tax receipts, encumbrance certificate, release certificate, and local approvals. It is also advisable to have a professional advocate look at them.
Don’ts
Don’t assume you will receive monetary help
Many banks and lending companies do not provide loans for purchasing vacant lands- especially if it is located in a far-off location with seemingly less potential at the moment. Thus, one should not rely on getting money from a financial institution for land investments. This makes it even more important to operate within your predetermined budget, and with the cash you already have.
Don’t skimp on environmental testing
It is essential to conduct environmental tests by professionals to evaluate the groundwater and soil quality. If you don’t, this may land you in a situation where you cannot construct a property or sell the land further because of health and environmental hazards.
Don’t forget to check the zoning laws of the area
The government labels land differently. For example: residential, commercial, agricultural, Mixed, etc.
This is well-thought-out, according to the lay of the land and the surrounding area. Thus, the buyer must never forget to check what zone the land they are seeking to buy falls under and adequately understand the laws before they make a purchase. For example, if a buyer wants to buy Residential Plots for Sale in Bangalore, he/she must ensure that the zoning is correct, or if it is flexible enough to be modified later. This can save a lot of future hassle!
The No.#1 Golden Rule!
We’ve saved the best for last. The importance of working with a professional real estate agent cannot be emphasized enough! Not only can they guarantee you a good purchase, but they can also take care of the legality, budget restrictions, and more on your behalf and ensure you make a stress-free investment.
The benefits of buying a property in Bangalore are undeniable for its steady growth and future potential. However, it could be confusing- where, when, how!?
Address Maker is a renowned real estate firm in Bangalore, offering a variety of plots, villas, and flats throughout the city. Visit the website to learn about plotted and villa projects in both North and South Bangalore. We’ll see you there!
