In the crime filled scenario of big cities, it would require some guts to contemplate the purchase of a housing plot! How familiar are you with some of the following terms? Have you even heard of them? The list is rather complex and some are 7/12w document, Title Deed, Sale Deed, Stamp Duty Document, Encumbrance Certificate and Municipal Corporation approvals. If you are a young professional interested in a long term investment, avail a loan.
If you seek a loan for the purchase of a building plot with the purpose of construction of a dream home, you are no exception. You belong to the masses who wish to live in a home they can call their own. After suffering abuse and humiliation at rented homes, that dream is only natural. Yet we know that a fortune would be spent for the plot and the construction. A lot of care is needed in the deliberations and the exchange of money, the legal documents and the choice of the housing society.
Big cities may no longer suit that dream with most of the scarce land available being swallowed up by apartment block builders. The blocks may contain fifty homes that tower into the sky. Even a block of five apartments brings higher returns and houses many more people compared to a single family construction. The palatial bungalow style home of the past seems a distant dream nowadays.
The reputation of the housing society where you negotiate would make a great difference. How long have they been in business and how many projects have they completed? Do they have a robust reputation? Attend their annual board meetings to have a better understanding because most projects involve a waiting period of several years.
It is important to be informed of all sorts of deceits practised in the name of construction plot sale. Some agencies fraudulently deal in land reserved by the government or land that is still in the process of litigation with the previous owners. Knowing the legal system, such cases can drag on for years.
Reasonably priced plots would nowadays be available only in the periphery of big cities, being too expensive in the interior. You have the option of choosing a smaller city or town for reasonable prices and comparatively peaceful living free from pollution and crime too. The fast growing big city suburbs do have the advantage of little pollution and probably lesser crime too.
If you need a bank loan to support your dream home plot purchase, such loans may charge around 10% interest. Discuss in detail with the bank regarding terms and conditions as well as the housing society regarding the payment options. Some risk is always involved because a certain sum would be paid in advance after which the waiting period for allotment commences. Be optimistic though and in touch with other buyers of plots.
You have to periodically make site visits too! What initially looked like a desolate jungle gradually transforms to layouts before your eyes across time. Soon commences the road cutting and the facilities like water supply and public parks. After all your payments are made, the organization hands over a possession certificate. It would be wise to construct a fence around the plot that could be of concrete or cheaper barbed wire to keep out intruders. When all formalities are completed and development works done, the development authority issues a katha certificate. That katha is the final proof of ownership after which you commence the payment of appropriate taxes.
You also need to carefully scrutinize the documents relating to the sale by the previous owners of the land. It does happen sometimes that you come to know of some legal disputes that are still pending in the courts long after your purchase. You could then once again have to dance to the tune of the judicial system and wait for the final verdict.
Construction of your dream home can now begin and the plan would have to be sanctioned by the relevant authority. Architects and civil engineers besides the real estate agents know the rules thoroughly but you have to be careful in the choice of the persons, usually through references from the circle of family, office and friends.