Purchasing a plot may appear to be a straightforward transaction involving the transfer of funds and property. The reality, though, is a little murky. Before making a choice, consider the prevalence of corruption, cases of multiple buyers, and individuals selling the wrong land with fake paperwork. Due diligence is necessary to secure a safe investment because purchasing a block of land in India can be a complicated process.
Before moving, it is essential to decide on the budget, the desired location, and the paperwork needed. Read on to learn how to purchase plots in Chennai, regardless of whether you intend to purchase land near the city's core or in recently developed neighbourhoods on its outskirts.
There are more opportunities to achieve a healthy return on your investment over time when the base price is modest. For investments in land, the same principle holds. An investor's chances of making a sizable profit are slim if they purchase property in a saturated real estate market where land prices are already soaring. Additionally, it can be difficult to locate purchasers if the prices are too high.
On the other hand, land prices in Chennai's outlying suburbs are competitive and, in some cases, considerably less expensive than in the central city. Land rates increase concurrently as social, civic, and physical facilities begin to emerge in these places. Such infrastructure improvements not only increase the belt's liveability index but also raise the cost of individual properties and plots of land.
Well-known developers search for fresh growth sectors to invest in. Chennai is a city that is continually expanding, thus there are many places there that are developing that are great for real estate investments. These areas have a strong potential for large returns on investment, which attracts investors.
Investment opportunities in Chennai can be found in places like Velachery, Old Mahabalipuram Road, Ponmar, Selaiyur, Tambaram, Porur, and Sholinganallur. These plots have a strong rental market, good infrastructure, and are close to hospitals, schools, and shopping centres.
Depending on the demands and objectives of the investment, a buyer of plots may search for different kinds of plots. Plot kinds are listed below.
As the name suggests, agricultural land is set aside for farming and other associated activities. Some states continue to impose agricultural restrictions because a significant section of our workforce is employed in agriculture.
Residential plots are lands used for constructing homes. The purchaser must get the required licences from the relevant authorities in order to convert agricultural land to residential use. Residential land can be bought by an investor as well.
A city's master plan will allocate commercial districts for the construction of businesses like stores, offices, and other trades. These parcels typically incur greater taxes and levies from the government. Many of these properties are constructed via shared ownership arrangements, where investors combine their funds to construct a property. Make sure the land has been zoned as commercial before buying any business property. Otherwise, it would be challenging to develop the site.
These Institutional plots are designated for certain uses, such as building a college, a school, or the headquarters of an organisation. Such plots are approved by a local government body, which also permits their sale or transfer if certain conditions are met.
Government agencies frequently create industrial plots to support industrial corridors in a region. These plots will be used, among other things, for cold storage facilities, manufacturing, and warehousing and logistics. Special approvals could be needed in order to purchase a plot for an industry. This is particularly true in light of the potential environmental effects an industrial unit may have on the neighbourhood.
What could appear appealing in a brochure might not hold true in practice. Before making an investment, you must visit the property and personally inspect it. Additionally, it is crucial to physically inspect the documents and get them validated by the authorities.
The identity of the seller must be checked and confirmed before purchasing a land piece. Additionally, we want to find out if selling the land needs permission from the government. If the property is held jointly, each seller's identification must be proved with certainty. Verify the seller's legal right to own and sell a property, if they are a business.
In India, paperwork is a crucial part of the process of buying land. The following documents need to be carefully examined after you have finalised the plot to prevent future conflicts. Below is the list of documents required:
Checking the title or deed in the name of the property seller is the first step. Verify the person's legal authority to sell the plot. Demand the original deed document rather than a replica.
Visit the office of your sub-registrar, where the deed is registered, to obtain this document. Here, you can find information concerning legal issues, disagreements, and unpaid taxes or fees.
Request original copies of each of these documents, then determine whether or not the payments are current.
If the land was mortgaged, you should look into loan repayment. Make that the bank has issued a release certificate. Obtain a property value that includes the precise size of the land.
Before spending your hard-earned money, real estate developers' guidance could be helpful in addition to due diligence and several verifications.
In short, it's not a good idea to speed through plot hunting. Before selecting a plot to invest in, take your time and conduct some research. After all, making a long-term investment calls for diligence and perseverance.