My experience on "Plot Purchase - Chennai"

Hello buddies... Who love Real Estate Business...

My experience on "Plot Purchase - Chennai" . Yes this is the right time to invest in top cities in India, either buy a plot or flat.

Which one do you prefer? I have chosen plot. What would you prefer this post serves as a guide line.

You could ask me why did I choose plot over flat? answer is very simple "Value Appreciation". In case of plot you could see huge % appreciation over flat, 5-10 years from now. This is purely a prediction based on the previous performance seen in real estate industry(Chennai).

I would like to share the real difficult task identifying free hold property. By free hold i mean property not under litigation,encumbrance,etc. Before signing a sale deed ensure you have done the below checks

i) Get last 30 years Encumbrance Certificate from S.R.O check for any encumbrance.
ii) Check if the land owner has patta
iii) Check whether Approved under panchayat/CMDA
iv) Parent Document
v) Layout copies..
vi) Legal opinion from reputed lawyer.
vii) Valuation Report from local development engineer to know the present Govt Value and MarketValue. For Tamil Nadu http://www.tnreginet.net/
viii) Soil test if you plan to construct commercial multiplex.

You will spend around 5000 Rs to carry out the above process, but I strongly recommend to follow above details before you proceed to deal. Don't hesitate to invest in land its as equal investing in gold. You got to spend your time and money for a good property.

Why people go for Flat?
We see three class of people.....
1) People who aren't sure of their settle-down place would go for flat
2) People who merely want to save tax by means of taking a home loan.
3) People who can't pay off cost of land.
I strongly advice you not to go for flat unless you fall under those class mentioned above.

Why should one prefer plot & thereof construction?
Think of a case where you got 3-10 lakh and want to invest some where and expecting 20-30% pa returns over 5 years. I would suggest you invest in gold/land/business.
Gold where you could encash sooner than other cases. Business - If you are entrepreneur please go for it. If you don't want to take risk, please prefer the safer investment where you are assured 50% and above value appreciation in cities like Chennai, Banglore,Hyderabad return in
3-6 years.

Know what options you have before buying a property.
Once you finalize on the property, please enter into an agreement for not less than 2 months[time for you to arrange for money to pay the price of land]. Don't ever sell/mortgage out your other land/property to fetch new one. why not? answer yourself.. Lets figure out possible sources one could think of..
1) Try for a Home loan if you are eligible.. (variant of home loan given for plot purchase)
2) Try to a personal/corporate loan if you are eligible.
3) Sell out gold/bonds etc.
4) Withdraw money from savings/offerings you have made, as they have very less returns compared to the the investment on land.

I end this post with a conclusion, please consult with your parents/spouse before you make your decision and take inflation into your account. There are so many factors that come into picture for your big time investment either in business/home. Take much care and have strong reason why you do certain actions/plans.

Meet you soon with a blog on construction... Should we give building contract or only labour contract. This one is real intelligence..