Handy guide to buying land

There is a famous proverb stating “Buy land, they’re not making it anymore”. Therefore, it is very important for anyone investing in this scarce element to have a basic checklist in place before taking the investment plunge.

Purpose of investment: It is prudent to establish the purpose of which the investment is being made. Is it for and end use or investment. An end user may use the land for agricultural, constructing a home or exploiting it commercially. An investor decision is based on the ROI (Return on Investment) over the investment cycle whether it is short, medium or long term. Once the purpose of investment is clear in the buyers mind then starts the journey to identify the land 

Location: One of the foremost criteria for an investment in land is the location. Once the purpose of investment is decided the location should meet the criteria for which the land is being bought. The location should have the potential for future growth and one must research well to invest in a corridor that attracts more buyers than sellers. This will ensure healthy capital appreciation.

Promoter profiling: Land can be purchased from the government, individual land owners, corporates divesting or through layout promoters. A thorough research should be made about the seller’s profile and past track record in completing the physical infrastructure of the layout, approach roads, electrical lines, etc. 

Due diligence: A complete and elaborate document verification through a competent lawyer is a mandatory requirement and should not be compromised under any circumstances. This to avoid any title defects, in future and use of the land for the purpose it is being acquired. All statutory approvals from government agencies and other bodies must be obtained before investment is made. Above all the land must be devoid of any encroachments and encumbrances 

Securing the land: Once purchased, the land should be properly secured with a fencing or a permanent wall clearly demarcating the boundaries from the plot of land. If the location is not fully habituated, then a regular visit to the land should be carried out, to ward off any encroachment and unlawful use. Statutory levies and taxes must be paid regularly.