Buying a Residential land

July 04, 2023
DD Planet

Purchasing a plot or land has its own pros and cons. Since generally it involves a substantial amount of money, we need to be careful before making a deal.

Here are the tips and advice to help you buy a residential land or plot:

1. Location matters, though in the case of plot, we may explore the other places that are developing fast and either are not that far from the city centre or well connected to it.
2. Define the purpose. If you want to construct and use the plot, you should fix the time horizon and ensure that you’ll be able to achieve your goal in the stipulated time frame. The choice of location would also be impacted accordingly. However, if you’re buying it for investment purposes, you need to measure the prospective growth in the surrounding areas and keep it a long-term affair.
3. Understand the allowed FAR and FSI in the area where the plot is located, especially if you’re buying it for self-use.
4. Keep construction costs in mind and modify your budget accordingly if you’re buying it for converting it into a house in near future.
5. Understand the taxation if you’re planning to purchase a land for investment purposes.
6. Make sure that the land you’re purchasing is free of any encumbrances or encroachment, is approved by the respective authority for residential use and doesn’t pose any litigation threat.
7. Prefer a plot that is flat and even in size. Make a visit and do a physical verification of the area and the land.
8. The area where the land is located should be well connected to the main roads and should have close by access to basic facilities such as schools, hospital, shopping and transport.
9. The plot you’re planning to purchase should have access to basic utilities such as water, electricity, waste disposal, rain water clearance and sewerage.
10. The area where the land is located should not be prone to heavy traffic or noise pollution.
11. Do proper due-diligence of the property documents such as title deed, encumbrance certificate, possession certificate and other approvals et cetera before investing your money.
12. Procure all the receipts including property-tax paid, if any.
13. If you’re purchasing the plot from a builder, understand the reputation, experience and delivery history of the builder thoroughly. Also find out the amenities being offered in the area such as club facilities, parks et cetera.