• ABC of Investing in Land

A. First of all, the person must find a plot that is fairly close to future market drivers. Depending on which city one      has chosen, it is possible to identify the future location of scheduled infrastructure projects, roads,      educational institutions, hotels/resorts, townships/residential/business complexes, SEZs, etc.
B. The investor must enquire into the legal status of the land and establish if it is for sale, then locate the owners      and make a purchase proposal.
C. For maximum future returns investing when entry costs are low is advisable.
D. Profitability depends entirely on one’s choice of location, the entry level(cost of property) and one’s holding      capacity.
E. The land should not be under litigation or earmarked for a government projects, categorized as forest land etc.
F. In a growth sector with new market drivers coming in, a plot of sufficient dimensions makes a lot of sense      since it has equal potential for developers from the residential, retail, office and hospitality sectors. As an area      attains more and more market drivers and begins to saturate, the value of plot increases manifold can be      sold in a seller’s; not a buyer’s market.
G. Every metro and tier-II city has its growth corridors. In terms of residential land, one should consider areas      beyond the currently favoured housing zones (such as the suburbs) that are scheduled for residential      development in the future.
H. The documents to be checked are the title deed (a legal document proving a person’s right to property), the      encumbrance certificate (in case the land is not under any sort of legal dispute), the release certificate (in      case the land was previously pledged to some one else). The surveyor’s report (to establish its exact      dimensions) and, if the owner is an NRI, the power of attorney that gives his representative the legal right to      act on his behalf.