When it comes to choosing between a residential plot vs. flat, buyers always get confused. However, investing in plots or residential lands is considered a wise decision. Why so? It’s because residential lands are a reliable investment plan. They attract price appreciation and offer the flexibility to build commercial or residential complexes according to your requirements.
That’s why, post-pandemic, the residential plot prices have gone sky high. The demand has also increased. However, buying residential land or plot in Lucknow or other cities comes with a few complexities. Let’s evaluate them and discuss the possible solutions side by side.
Challenges involved in buying residential land or plot
Since land or plot purchase is a big investment, you need to conduct a thorough research before buying. If you’re a new buyer, the options available in the market can be overwhelming for you. So, here are the challenges that you need to understand.
Understanding the land or plot type
There are different plot types. For example, agricultural land, residential land, and more. Therefore, it’s crucial that you understand the plot type before purchasing it.
While residential or agricultural land may appear similar, in realty, they are not. Residential plots in Lucknow can be used to build 3 BHK flats or housing societies while agricultural land are only for agricultural purposes. We recommend consulting a revenue officer to understand the term better before signing the sale deed.
Understanding the documents and due diligence before buying
Understanding the legal terms and legality of the property is yet another challenge that many potential buyers face. So, to solve this issue, you need to check the documents and verify them. Ensure the property holder has a Title Deed as it validates that the seller is the rightful owner of the property.
Every type of property — residential, agricultural, or commercial, the Title Deed should have all the information clearly mentioned in it.
A genuine Title Deed allows you to look for the property details on the government sites and validate the details. Besides, other documents are also important to consider. You should check the Encumbrance Certificate for the last thirty years to understand if it has any legal dues pending or not. A clear Encumbrance Certificate clarifies that the land is debt-free.
Checking each and every paper work is essential to ensure your money is in safe hands.
Ensuring the land title is clear
Many properties fall under litigation. And real estate agents try to sell them off at lower prices. It’s a trap and investors may lose their money. So, it’s essential that you check the property’s history.
Some cases also appear in which a single plot has multiple owners. In such a case, the consent of all owners is required to proceed further with the purchase.
Understanding the location and its purpose
Every plot or land purchase has a hidden purpose in it. For example, you buy a piece of land in Lucknow for residential purposes. So, check beforehand whether the plot is located near hospitals, schools, and markets that are easily accessible. Alternatively, if you want to involve in agriculture, you can buy a land away from the urban area.
The same is applicable for the commercial plots that you can buy adjacent to business complexes.
Understanding amenity access
Amenities define the value of a property. Even if you’re planning to buy and build a rental property, first find out what amenities are easily accessible in the area. Since the plan is to construct residential apartments in the future, check the accessibility to telephone network, power supply, drainage system, water supply, and such more.
Easily accessible amenities ensure a comfortable living. We recommend not buying a property where basic amenities are absent.
Understanding your budget and easy of borrowing
It’s challenging to adjust your budget for an expensive land. That’s when borrowing from nationalised banks gives you the much-needed respite. Before purchasing land or plot, always keep your finances ready and budget finalised.
Set aside a budget for property purchase, as you will also need to cover additional expenses, such as stamp duty. Always contact your bank about the loan requirements as borrowing from private or unauthorised institutions may shoot up the rate of interest.
The loan amount sanctioned by the bank depends on several factors, including the property type, its location, and your credit history. Don’t forget to consult a credible real estate developer like Jashn Realty to take things ahead.
So, fix a budget and look for properties within that budget only.
Conclusion
Investing in land or a plot can be full of challenges. However, if you’re aware of its ins and outs, the process can feel smooth. Investing in a residential plot is advantageous as it can yield potential future returns. We recommend examining every challenge that comes your way and thoroughly researching the property before making a purchase. This will help save you from possible scams.
