Plot purchasing has always been considered as the most complex issue. Whether you are purchasing a plot for yourself or for commercial use, it requires quite many efforts to accomplish this task. If you want to purchase a plot, you need to do a lot of research, because without proper and complete details you might invest in a disputed land. Finally, you can only sue against seller and nothing much.
If you want to purchase any plot then get ready for lots of efforts to be done by you, because Indian banks do not sanction land loans so much easily. This is a quite tricky and complex task so every bank wants to bear minimum risk on such loans.
You can consider following points if you want to purchase a plot:
Borrowers can ask to banks to customize the plot loans terms and make it easy to understand. Ask them to evaluate you with their documentations, rate of interest and EMIs. Proportion between your EMI amount and your income should be large else bank will not pass the loan. Apart from land price you need to take care of processing and registration charges, loan tenure, repayment options and early payment options.
Real estate market of India is totally dependable on lot of documentations. If you want to sell your land then you need to show all related documents to the buyer. If buyer and his/her lender are not satisfied with your documentation then it will be considered as disputed property. Many investors invest in raw land to see the good growth and return in Indian real estate companies. Lots of foreign projects and ventures are also coming in India and they want raw land to accomplish their projects. That’s why many investors want to invest in raw lands.
If you want to invest in any raw land then research all the factors of lands such as
who is the owner of the land
If land is used for farming
Proper diversions are available with land or not
If any dispute is associated with your desired land
If seller is purchasing same land to you and any other party.
If land comes under government property.
By evaluating above factor satisfactorily you can proceed to next step which is the purpose of buying a raw land. If you want to buy a land for yourself then it is very easy to get loan from bank but if you are buying for any commercial usage then you need to provide your plan in the bank.
Similarly if you want to make a small industry on raw land then the complexity of purchasing increases. In this way also you need to answer many questions to prove that your plan is beneficial and you will be able to repay loan amount easily.
Although buying a land is complex term but if you find a good land you can utilize it effectively and if you want investment then you can sell off your land after some time and can get good returns.