How To Buy A Plot

Buying a house or apartment has become attractive and affordable to property buyers with attractive property, low interest rates on housing loans and tax benefits on principal and interest on Home loan. But if you are planning to construct your own dream home or villa, buying a plot is a good deal. Buying a plot or site for investment or constructing your dream home is one of the difficult investment decisions for any investor. There are number of things you need to consider before buying a plot or site.

Things to consider before buying a plot

Buying a plot or site is difficult investment decisions for any investor. If you are buying a plot for construction purpose, you need to consider some key factors before buying a plot. There are number of factors to consider while investing or buying a plot. Following are some important things you need to consider before buying a plot for constructing your dream home or villa.

• Budget: If you are buying a plot for constructing your home, you need to consider budget. Unlike buying a house or apartment, it is important to set out your budget in advance and work out the costs from the beginning. Buying a plot for construction purpose need budget for buying plot and budget for construction. It is also important to set aside some surplus cash for unforeseen cost.

• Location: Choosing the location of plot is vital if you are planning for investment or constructing home for letting out for rent. To get your residential plots or lands in a best price, location, infrastructures go to the various online classified websites. Proximity to commercial hub or center of the city is always the best location. Check out if there are good schools, Hospitals and transport facilities such as distance to bus stops, railway stations, Bank and supermarkets etc. Check for rate of property currently going on in that location by asking few people or agents, so that you will not land up putting up more money in the deal.

• Real Estate Professionals: Real Estate Professionals provides you with listings of plots and property for sale. You can also seek assistance from your friends, relatives or local realtors to find a plot in your budget and in good location. Nowadays real estate professionals and real estate agents offer their service through real estate portal which allows property buyers to search real estate properties online.

• Financial Assistance: You can get loan for both – buying a plot and for construction. Banks and financial institutes offer “Land Loan” for purchasing land for both construction and investment purposes. One thing that you must remember is that there are no tax sops if you take a loan to buy a plot of land. Banks and financial institutes offer “Home construction loan”, if you are constructing home or villa in that plot of land. If you are buying a plot and constructing your own house, you can get a tax break. In such a case, the total amount will be combined and you will get the tax benefit on the entire amount.

• Tax deductions: Buying a plot for investment purpose, there are no tax benefits on a loan. If you are buying a plot and constructing your own house, you can get a tax break only in the year in which the construction is completed. In that year interest on land loan as well as the construction loan till the end of the previous year shall be taken together for deduction. The principal repayment you make on your home loan is also eligible for income deduction after construction is completed.

• Clear and marketable title: The demand for residential property in cities is increasing day-by-day. If you are buying a plot or property, ensure that plot or property has clear and marketable title. There are number of case where property buyer may find himself in a situation where he stands with no property and no money. Check whether the seller has a right over the property. Ensure the layout has been approved by the city development or planning authority and there are no legal dues and complaints on the plot you are buying. An independent solicitor or lawyer is always recommended in property deals.

It is crucial to get a land survey of any property you plan to buy before you sign on the dotted line.It gives you a chance to know what exactly you are buying and can let you know about potential legal and other issues that might arise in the future.A land survey done at the time of purchase will help you in the case of any legal disputes over property boundaries, titles, easements and other issues. It is advisable to measure the land before registering the land in your name. Ensure that the measurements of the plot and its borders are accurate.

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