Why buy plots?
Buying a plot of land in a city is one of the best investment propositions in a country like India. It has become more pronounced from the 1980s and thereafter because real estate is now being viewed as an asset as much as gold is. Mutual funds and equity funds are the other investment options. While mutual funds have lock-in periods, equity markets are very volatile and one must not hazard investing in them unless they follow company evaluations and movements of the stock market that depend on government policies on various industries, economic factors like inflation, rains, pandemic, etc.
The demand for real estate in Hyderabad has reportedly surged following the occurrence of the Coronavirus. This phenomenon has been witnessed for independent homes, open plots, and villas across the city. Although on paper buying a plot of land looks straightforward and simple, there are many complications involved when you get down to brass tacks. There are some simple but golden rules you need to follow when you get down to the actual process of plot buying.
Documentations needed for their purchase
You have to adhere to certain regulations before you buy a plot of land in Hyderabad or any other town and city in India. Before you purchase a parcel of land ensure that you are transacting with the appropriate person. In other words, the person selling you the land should have a property deed in his or her name. The deed, a legal document, states that the rights of a plot are changing hands from its genuine owner to a buyer who is entitled to buy land in the area within India where the transaction is taking place. The deed also contains a proper and comprehensive explanation of the property.
Deeds are mandatory when buying lands of any type such as agricultural, commercial, or farming. It is recommended that when people undertake such transactions, they take the assistance of a legal expert who can perform due diligence of the property.
An Encumbrance Certificate (EC), an assurance document, that the property being bought or sold does not have any monetary or illegal liabilities like debt or an unsettled loan. In Telangana state, computerized ECs are issued. It is suggested checking the EC for a minimum of 30 years.
Ensuring land purpose
Buyers must ensure that they are buying land for the purpose they intend to use it for. Agricultural lands close to cities are sometimes palmed off by devious sellers to buyers, who are assured by the former that they can build residential properties on them. For more info, check the website of the Registration & Stamps Department, Government of Telangana.
Meanwhile, some people buy farmhouses that are far away from the cities they are living in. These are places of retreat for people who want to get away from the hustle and bustle of cities. It is better to mention that such places would be used only temporarily or to treat guests but not as places of accommodation.
When are tax benefits available?
People can borrow loans for buying residential real estate properties in areas earmarked by the state governments. Certain banks and financial institutions issue home loans in the age group 18-65 and some in 21-65 as per their different criteria, the maximum tenure of repayment varies from 20 to 30 years. It is suggested that aspiring buyers of plots keep their credit profile as strong as possible to secure a loan with reasonable interest rates.
Most plots now in the suburbs
Individuals who are buying plots offered by developers of independent houses in gated communities in cities such as Bengaluru, Chennai, and Hyderabad should be prepared to move to suburban neighborhoods. It is not such a bad idea considering that these gated communities are like mini townships that offer all basic facilities for a healthy lifestyle. What’s more, most of them are built very close to the ring roads that now most metropolitan cities have.
Moreover, with work from home (WFH) being offered to many employees who work in industries in sunrise sectors including information technology, electronics, pharmaceuticals production, and solar panels, among others, it should not be a cause of worry for them.
Most people, these days, are paying bills for their household amenities or booking air/rail tickets, managing bank transactions from the comfort of their homes. These factors will also help a long way in decongesting the city’s central business districts from becoming overcrowded. It is, in fact, a very healthy idea as it would decongest our cities and decrease their pollution levels.
If you are also looking to buy a plot in a developed area that is not too far away from Hyderabad’s ring roads and airport, do check the website of Sterling Heights. They have a project by the name ‘Aster Meadows’ which is located in Bhanur, very close to Patancheru, one of the major industrial hubs of Hyderabad.