Investment on land is becoming a very profitable commercial initiative. It yields much higher return to the landowners and encourages them to channelize in other profitable business ventures using land. Land is such a fixed asset whose price will always in the sharp rise with the passage of time. Even a small piece of land has the potential to generate sufficient higher profit margin for the landowners. Now many young men are taking loans from banks or they are using their own limited financial resources to purchase land from farmers and other stakeholders at a cheap price rate and then they sold it to renowned real estate giants at a higher price rate. Many of them have become prosperous in this manner.
Therefore it can be properly said that investing money on lands can yields higher returns compared to that of banks and other financial institutes. Saving the money in bank though ensures financial security but it takes a very long period of
time for the depositor to receive the principle amount with interest. The main reason is high maturity period and even if the depositor receives the stipulated amount the returns is not sufficient. The returns that a depositor receives from the bank after a fixed maturity period is not sufficient to keep pace with rising prices of essential commodities. Besides, rate of interest of bank does subside with the passage of time. In this scenario it is quite applicable to invest the money in the business of land than to pile it up in banks. Land business provides ample opportunity of making money through lease and rent besides, selling it to builders. Even any person buys any land at a high market price then they can compensate the loss through offering it for rent or lease for any purpose. Besides, investors do receive favorable tax benefits from investing in any real estate project and so their essential returns never curtailed.
Investing money on land also involves higher rate of saving and that result in higher returns. In the period of inflation prices of land is in the mode of uprising and so the owners have the option of leasing the land at a higher installment charge every month before the end of the tenure. So this shows that in any economic circumstances the returns on land investment is quite higher than those from the banks. If we sale our land at retail price then the possibility of earning higher returns become more secure. Many real estate giants are now emerging and are in search of plot of land everywhere. Individuals who have sufficient land at his disposal can sale it different companies with different market price. It will not only result in higher profit margins but also encourage them to become partner in many real estate projects to enjoy much higher slice of profit. Investment land thus provides many business opportunities to the shareholders than keeping the money in bank.
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Land is emerging as an important source of earning revenue. There is a huge
demand of land everywhere for multiple real-estate projects. Many individuals
are now searching lands to purchase at a cheap rate and resale it to the real
estate giants at a higher market price. It not only guarantees surplus profits but
also establishes position as a reliable dealer of land. Now there are certain
important issues that need to be addressed before any person seek to enter into
the land dealing business with the real estate giants. It is important to settle these
issues first to avoid any legal complication after the successful purchase of the
land. We shall now mention these issues in the below:
Pending taxes and duties associated with the land: Any individual planning to
purchase land for re-saling it to any real-estate company first need to satisfy this
first problem. He should ask for the documents of tax payment and other duty
receipts from the landowners. He must verify the contents of these documents
through cross checking it with the documents available in the office of the local
administration. If there is any tax or duty is pending then it is wise to avoid
purchasing such land. Otherwise the new owners will have to bear the burden of
paying such pending tax and duties.
Fixed boundary of the land: It is important to know the exact land boundary to
avoid allegation of forceful encroachment of other’s land. However, many
landowners are reluctant to provide the exact boundary of the land for the fear of
losing the clients. So the buyer must check the extent of land boundary through
browsing on the documents of the local administration. If there is a dispute
regarding the land border then it is appropriate to avoid purchasing such land.
Besides, if the land boundary does not match the required surface area for real-
estate projects then it is useless to purchase such lands.
Ownership verification: It is important to ascertain the legal ownership of a plot
of land that any individual is willing to purchase. It not only involves the actual
identity of the owner but also of the selling right or property transferring right of
such person. This can only be ascertained through browsing documents like sale
deed, mother deed and gift deed. Owner may avoid hand over such information
for the fear of losing the clients. If it is not verified then it can cause trouble for
the future owner of the land.
Accessibility: It is preferable to purchase land from an accessible area to easily
attract investment for real-estate projects. Builders usually prefer to construct
buildings and apartments in accessible regions to attract buyers and shareholders.
So while purchasing any land the accessibility of the area must be ascertained in
terms of communication and transportation. Without proper accessibility it is
useless for the builders to invest huge sums of money in a real-estate project. So
it is ideal to avoid such lands with poor accessibility.
Joint properties attached with land: Sometimes in a given plot of land is often
composed of a common well, temple and other shared properties. Therefore it is
first to ascertain the presence of any common property in the land. However,
many owners desist from revealing such fact to fear the loss of clients. In this
respect it is better to check the relevant documents of the local administration. If
it is so found on verification then it is better to avoid buying such land.
It is not possible for any person owning a vast property of flats to manage and collect annual rents single handedly. Besides, his properties are located in different areas and hence it is impossible to manage such scattered properties. In this respect it is necessary to hire the services of an efficient property management company to manage and maintain such properties in an organized manner. The task of the property management company not only includes rent collection but also to resolve disputes with different tenants residing in such properties for a long period of time. In this scenario such company also plays a pi- votal role in removing such tenants through legal means and ways. Now we shall mention some of these tips below to minimize the tension of the owners:
Verification of experience and reference: While availing the services of any property management firm, owners must verify its work experience that mainly comprised of its experience of handling disturbing tenants of the property. Besides, it is also essential to see their company-opening period to judge their ability to resolve conflicting issues. It is essential that such firm does have the solid reference background so that owner must at least provide them a chance to prove their worth.
Verification of the legal document: Every property management firm has their respective contract agreement, which highlights the terms and conditions of their service. Property owners have to read these terms properly before appointing them for the task. Besides, such firms never deal with owners who refuse to sign their contract agreement. So the owner must be careful while signing such agreement. They must see cancellation terms for discharging them off their duties if they fail to perform satisfactorily. Often it is found that many owners are able to end their dealings with such firms due to lack of under estimating the cancellation clause.
Review their level of sincerity: It is important for every property owner to assess the commitment level of such firms. If they do not show any zeal of managing the properties of the owner then it is useless to hire such companies. It can also be ascertained through direct dialogue with the clients. Besides, if such firms do not
provide its services during any emergency situation then the commitment of such firms certainly raises questions in the mind of the owners.
See some for firms before appointing: It is important for the property owner to have a decent check on some other management firms before assigning the responsibility to a particular one. Checking many firms do provide an option or increases the selection room for the owners. It is important because on checking such firm may be found whose terms and conditions are quite flexible. It is essential to filter out such firms, which do not have any sufficient experience of property management at all. It leaves more space for the owners to consult with legal experts before appointing any particular firm for the property management purpose.
There is a growing demand for agricultural land for the construction of smart
cities and other mega township projects of the real estate companies. While
purchasing ay agricultural land the investors must remember the following facts
for smooth business transaction of the land. These facts are mentioned below:
scenario it is ideal to abandon such lands whose property taxes are not
being paid or pending. Many investors due to lack of proper information
have ended in purchasing lands whose taxes and other duties are either
pending or not paid by such owners.
5. Actual size of the land: It is essential to have a proper measurement of the
land. Mere information provided by the owners about the land area can
often be misleading. So it is better for the investors to check the land size
with the help of professional agencies. Price of the land is also based on its
surface area and perimeter. As a result many landowners aiming to grab
more profits give a false measurement of the land to the investors.
Knowing the proper land area also enables the investors to bargain with the
farmers to reach at a consensual level for purchasing the land.
The investment on any plot of land is becoming a popular commercial venture.
The sole reason is that with the growth of population there is now a growing
realization of the availability of land in plenty among the people. To meet the
demands many landholders and contractors are now buying barren and fertile
lands from the farmers at a cheap rate and sold it to the highest bidder at a
surplus price rate to earn more profits. Besides, there are certain other
advantages that can be enjoyed through investing in land. These benefits are
a) Explosive growth due to limited opportunity:
Every land has fixed boundary and so there is no scope for increase in the
area of the land. However, this does not prevent the increase in prices with
the subsequent passage of time. Many landowners are now selling their
vacant land to renowned builders and construction companies. These
builders and construction companies are quite expert in obtaining profits
even from a small piece of land.
b) Low maintenance compared to flat investment:
Land whether barren or fertile does not include any maintenance cost
unlike flats or other residential establishments. Flats and residential
apartments do have a high maintenance charge that involves repairing and
painting. Land does not involve any such maintenance charge if it is for sale.
Owners only install fence to retain the boundary of their plot of land.
When the overall economy witnessed a booming phase then the prices of
fixed commodities like land also increased to a surplus extent. Prices of land
become double because of speculation. Landowners now get the surplus
opportunity to sale their lands to real estate companies at a comparatively
higher price than the actual market price. The price becomes a dominant
factor in the open market economy during the period of boom. However,
fair dealing is essential to check the price imbalance of the land.
d) Opportunity to enter in a joint venture with a builder:
Land investment allows the landowners and other shareholders of any plot
of land to enter into the real estate business in collaboration with any
renowned builder or real estate giant. In this way they can enjoy the spoil
of being associated with such functionaries. Here the owners and other
stakeholders do get the opportunity to enjoy the profit of selling flats and
apartment blocks to a group of wealthy clients along with the builder.
e) God Does not make it anymore:
Opportunities do not come automatically but need to be created at all
means. The same rules apply here while investing in land. Land is a great
gift of God and this fact is now being proved in reality. Owners are not only
selling land for profits but also leasing it to enjoy monthly installment from
the concerned party. Even for holding any events like fair the owners do
charge a decent rental charge from the authorities to lend their piece of
f) Buy in wholesale and sell in retail:
For making more profit it is ideal to buy land at a wholesale price range.
Though it involves some holes in the pocket but that can be compensated
quite easily. Owners purchasing any plot of land at a wholesale price can re-
sale it at retail price to enjoy more profit. Selling land at a retail price rate
allows more inflow of money than in wholesale.
g) Best long term investment on earth:
The demand for land unlike other commercial commodities never diminishes
and on the contrary will always be on the rise. So it is wise to invest in land to
secure a stable financial position in the market. Many young people are now
entering in this business to enjoy a stable financial security for entire life.
Five things needed to be known before buying land
As the investment in land has become a popular business the demand for land has gone. Every individual is now engaged in the competition of purchasing land from any area. However, there are five most important things that needed to be known before purchasing any plot of land. Wrong selection may result in severe loss both financially and economically for the potential investor. So the following 5 essential facts are mentioned below:
1. Land location: It is utmost essential and all interested buyers of land must take this consideration into account. If they purchase any decent plot of land in a remote area where there is no proper transportation and other communicational facilities then it is very difficult to attract the interest of the real estate giants to construct apartments and flats in this piece of land. The real estate giants usually prefer easily accessible locations to construct buildings and flats. Even if they construct buildings they will not get clients to buy the rooms of such apartments. The reason is simple clients do not want to purchase house in any inaccessible destination. So communication deserves special mention while selecting land.
2. Land size: Before purchasing any land every real estate agent conducts proper measurement of the land for the purpose of starting any mega
project. If the measurement of the land meets the area for completion of the project then only it is fruitful to purchase the land. If the land size does not meet the required project area then it is useless to purchase the land. Some real estate companies have lost money as they purchased land whose does not meet their project area.
3. Land types: Any real estate company must the character of the land through soil testing. If the land is able to provide decent support or can bear the pressure of multiple buildings and apartments then it is applicable to buy such land. If the test shows that the land is vulnerable or it is prone to earthquake then there is no point in purchasing such land.
4. Proper checking of the boundary: While purchasing any plot of land it is important to have a proper inspection of its area boundary. Without any idea of the boundary it may create trouble for the investors in terms of illegal encroachment of land and invite other legal complications. So before purchasing any land the area boundary must be confirmed. If it is not then the investors with the help of district magistrate and local authority must specify the boundary in the document before purchasing.
5. Checking the ownership background: While purchasing any land it is important to ascertain the real owner of such land and seek their consent to purchase the land. Without the consent of the genuine owner the entire transaction becomes illegal. The real estate company has to face many legal complications because of dealing with fake landowners. So before purchasing any land it is important to ascertain the actual identity of the owner for further transaction of business.
12 important documents to check and have while buying a land/ property
Land is now an important money-earning source for many enterprising people. Today land is not considered for agricultural activities only but also for many real estate projects where many real estate players are prepared to pay huge sums of money to acquire a plot of land that will serve their purpose. In this case it is essential for every purchaser to verify and access certain documents before planning to purchase any plot of land. These documents mainly include the following:
1. Sale Deed: Before the final purchase of any plot of land every buyer must first try to obtain this essential legal document from the concerned landowner for the purpose of verification. This document serves as a testimony to the fact that the present owner possesses the right to transfer or sale the ownership of his land to any land buyer. It is compulsory that the document has authorized registration of the local administrative authority.
2. Conversion Certificate: While purchasing any land for construction project it is compulsory to have this essential document. This document states that the land can be utilized for non agricultural purposes like construction and many more. The document is issued from the revenue department of the local administrative authority.
3. Mother Deed: Every buyer must ask for this document from the owner of a land/ property to verify the contents with the recorded documents of the local administrative authority. This document provides the ownership history of any land/ property. Change of ownership of land through gift, partition, sale and inheritance is also mentioned in such document. As a result it helps to establish the ownership right of the present owner over a plot of land.
4. Encumbrance Certificate: The concerned purchaser before finalizing to purchase any land must obtain this certificate from the office of the property registrar. This certificate will mention whether any business transaction had happened on this land during any particular period or not. It also specifies whether the land is mortgaged or not.
10.Betterment charges receipt: Before purchasing any land the buyer must ask for this document from the owner. This document proves that the betterment duties have been regularly paid to the local authorities and hence there is no pending dues attached with such land.
11.Khata Certificate: Every purchaser must obtain this document from the office of the local authority. This document highlights the detail of the land property, which is essential for every buyer to know before commencing the final dealing of land purchasing.
12.Completion Certificate: Any person planning to buy any building over a plot of land must obtain this document from the local office. This document shall mention whether the constructed buildings have followed the prescribed criteria of the administrative authority or not.