7 Mistakes To Avoid While Buying Plots In Chennai
Are you investing in real estate? Great choice! Real estate is the safest and most secure type of investment. It is a solid investment that gives a great return on investment and long-term investment benefits. Real estate is also one of the largest sectors in India and contributes majorly to the country’s Gross Domestic Product (GDP). Due to its large size, it is also one of the key employing sectors in India, providing a large number of people with job opportunities.
The Indian real estate sector has been growing at a rapid pace in recent years. The government’s initiatives to boost the economy and attract foreign investment have also helped boost the sector’s development. The rising income levels and growing economy, as well as the population, have resulted in an increased demand for both residential and commercial real estate property. What is noteworthy here is that land is one of the most sought-after real estate types and is experiencing a desirable demand from investors and buyers alike. This blog will discuss why you should invest in land and the mistakes to avoid while buying plots in Chennai. Keep reading!
Why Should You Invest In Land In Chennai?
The land offers a lucrative platform for investors to put their money to use and build their wealth. The land is a piece of plain, undeveloped plot that is a lucrative investment avenue with immense potential to reap high returns on investment. If you are looking to invest in real estate in Chennai, here’s why you need to consider investing in land –
1. High appreciation value: Land has a higher appreciation value compared to other types of property, including developed commercial, residential, and industrial property.
2. Fast-moving asset: The developments in the various sectors in the country have created several job opportunities and the subsequent migration of talent. This has increased the demand for both commercial and residential land, making it a fast-moving asset.
3. Valuable asset: The land is a fast-moving asset because the supply of plots is lower than the demand. This makes the land a highly valuable asset.
4. Low initial investment: Since land is an undeveloped asset, you will not be bearing the cost of construction and maintenance of the property in your overall cost. Therefore, land involves a very low initial investment.
5. Flexibility: Land is also a very flexible asset in terms of development. It offers the investor the scope to develop it into a property of their choice. This is a major advantage of investing in land.
These are a few reasons you should consider investing in plots over any other developed property in Chennai. It is not uncommon to commit errors when you invest in land. The next section of this article will take you through the mistakes to avoid while buying plots in Chennai. Let’s dive right in!
7 Mistakes To Avoid While Buying Plots In Chennai
Investing in land is a very fruitful investment. Chennai is a great place to invest in land, as the city has been experiencing rapid growth across the IT, Corporate, and Automobile sectors. This growth has led to increased job opportunities and the subsequent incoming of more talent from other regions. This has resulted in an increased demand for land, both commercial and residential. Therefore, Chennai is a great destination for land investments.
If you are looking to purchase land in Chennai and if it is your first land investment, then there are a few mistakes to avoid while buying plots in Chennai. These are mistakes that can easily be avoided with an extra pinch of diligence and caution when in the land buying process.
Watch out for these rookie mistakes to avoid while buying plots in Chennai:
1. Not going to a land developer
The vast land market brings with it the danger and possibilities of fraud. Unlike apartments that are usually sold by registered builders, land can be sold by anyone claiming to possess it. This makes the background check quite challenging. However, there are land developers you can approach while buying plots. Find a registered and reputed land developer, and they will guide you through the entire land buying process and take care of it end-to-end.
Not going to a land developer is one of the biggest mistakes to avoid while buying plots in Chennai.
2. Not going on a site visit
This is another rookie mistake investors make while purchasing land. Even though a plot is a plain parcel of land, do not ignore going on site visits. They are as important as they are while buying apartments or any other developed property. The more visits you make, the better you will understand the plot you want to buy. Plots also require quality and measurement checks that are possible only when you go on a site visit.
3. Not Checking the Title Deed
One of the primary mistakes to avoid while buying plots in Chennai is not checking the title deed of the property they are interested in. The title deed is a document that proves that the seller is the rightful owner of the property and has the legal right to sell it. This document also contains important information about the property, such as its dimensions, location, and any restrictions or easements. Checking the title deed will help you avoid any legal problems in the future.
4. Not checking the buildability of the plot
Buying a plot and not being able to develop it into a full-fledged property makes the investment futile. When you invest in plots, you must understand the buildability factors of the plot. Not all plots are buildable, and not all buildable lands are good plots. You must check how suitable the land is for constructing buildings, how good the soil is, and more. Not checking the buildability of the land is one of the gravest mistakes to avoid while buying plots in Chennai.
5. Not asking for the relevant documents
There are many other documents the seller (as well as you, the buyer) must produce. You need to be ready with all necessary documents, and at the same time, the seller must be in a position and willing to produce all documents related to the land they are selling to you, as well as those that act as his identity proof at any given point in time. Therefore, consult a real estate expert and check what the documents you must keep in hand and the documents you must check from the seller’s side are.
6. Underestimating expenses
Agreed, the land is that type of real estate investment in which the initial money you will be putting in is much cheaper compared to what you will otherwise be spending on other developed properties. But this doesn’t mean that there won’t be other expenses involved at all in the process of buying a plot. This is another one of the rookie mistakes to avoid while buying plots in Chennai. Always be prepared to incur overhead expenses like registration fees, approvals, and more.
7. Not considering the location
This is THE BIGGEST mistake to avoid while buying plots in Chennai. Wanting to invest in a city like Chennai and not mindfully choosing a good location makes the investment a disaster. For any real estate investment to be fruitful, you must ensure you buy the land in a prime location. Prime locations are usually fully developed and increase the value of your asset. Therefore, if you want to buy commercial land, then look for one in a prime commercial location. If you want to go with a residential plot, it is suggested you buy one in a residential locality.
These are a few mistakes to avoid while buying plots in Chennai. Keep these points in mind when you get started with the process of buying land in the city. Learn more about why plots are the best investment choice here !
If you are looking for a reliable land developer to assist you in buying a plot in Chennai, look no further than G Square Housing Pvt. Ltd. We are South India’s largest and Tamil Nadu’s no. 1 real estate developers with an experience of over a decade. Since its inception, we have helped many corporates, industrialists, and individuals seal deals on land that are high in value, in the right places and at the right prices. For more details, get in touch with us through our website.