Are you interested in buying your first plot? Plots have become a popular investment especially in cities where land is a scarce commodity. Although purchasing a plot is generally simpler and more affordable than purchasing property, it can also be potentially just as lucrative. If you’re a first-time buyer, the process of buying the right plot can be a daunting task. Here are some tips on what to consider when looking for a plot investment.
Be clear about why you are buying the plot
Perhaps you see a plot as a better investment than stocks or other assets. Perhaps you want a plot to build your own home. You certainly need to have some long-term plan for the plot because it will determine what and where to buy.
Familiarise yourself with the different types of plots
Greenfield land, which has never been developed, is different in character from brownfield land, which has been built over previously. They are distinct markets and, in some respects, subject to different planning requirements.
Research the market
There is a large variation in land values in different cities in India and even within those cities depending on location and quality. You need to research the market and determine what is the most value-for-money investment.
Focus on areas with growth potential
The importance of location applies to plots as much as to other properties. Keep an eye out for areas due to benefit from improved infrastructure such as transport links. The price of the plot is greatly affected by location. If you are not personally acquainted with the area of your search, spend time getting to know it to see if it really does meet your criteria.
Determine the permissions required for building on the plot
Some plots are sold by reputed developers with permission to build already granted. You will need to clear the final details with the planning authorities.
Determine your built-up area of the plot
Determine how much land you would like to use as built-up area. You must calculate whether your dream house will fit into that plot. Importantly, there are two types of plots – developed and un-developed. Developed plots have all facilities including proper sanitation, water supply and power supply. Un-developed plots will require these basic facilities to be added.
Treat the plot as a long-term investment
Plots are a great long-term investment. It is wise to play the long game and try to judge the optimum time to develop on the land or to sell it.