Cover Story undergoing or about to undergo development, so may soon see planning permission! Simple and transparent Land investment is very simple and transparent with no complicated matters to go through, and there is a constant demand for it. For instance, stocks and shares are not physical but land is a physical thing which is there in front of your eyes. After any land investment is completed the new land owner has control over maintenance, planning permission and the future sale of the land. Any investor willing to buy, or invest in some land will obviously wish to see the land first and know everything they can possibly know about it before going any further. With that in mind it is a good idea to maintain your land... the location, development costs and community attitudes will also have a big say in future land value. So, location is very important for the future value of the land. Land that is near a large developed way that connects two towns will almost certainly increase in value! Usually the closer your plot is to a major road or town the higher the value of the land. The direction of growth is very important in deciding which plots of land are most valuable, so buying land in a neighbourhood that is to be developed will provide a bigger profit to an investor. Importance of timing Timing is key to all investments; how-
ever let’s not forget that land is a longterm investment. Also, most land does not produce regular income. Many investors get around this by leasing the land for allotments, tenant farmers, parking or even a used car lot! This can generate some money while you wait for your land to increase in value. It is very clear to see why in-
chase proposal. For maximum future returns, it is important to make one’s investment while entry costs are low. Location is equally important if one wishes to buy land to use in a retail venture or a manufacturing unit, since such ventures are dependent on the immediate access to a customer catchment and manpower sources. Things to keep in mind while buying land
vesting in plots of land is becoming an increasingly popular alternative investment! Checklist for purchase of land Here’s a checklist for those putting their money on land. Depending on which city one has chosen, it is possible to identify the future location of scheduled infrastructure projects, educational institutions, hotels /resorts, townships, residential and business complexes. Inquire into the legal status of the land and establish if it is for sale. Locate the owners and make a pur-
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The piece of land may be under litigation or may be earmarked for a government project. It may be categorized as forest land or can be in a coastal regulation zone. It may also lack basic facilities such as water and power supply, or fall in a politically or socially challenged sector. It may also be in a zone notorious for encroachment. Any or a combination of these factors can subtract from or nullify its investment potential. All negative possibilities should be covered before the purchase. One should also consider the total cost of acquiring the property, whether the space the land provides is adequate, what other businesses are active around the site, transport options, shopping etc. and the history of the site. Documents to be checked in land purchase 1) The title deed (a legal document proving a person’s right to the prop erty). 2) The encumbrance certificate
August - September 2012