Q & A on Land Investment - Mr.Gunasekaran , Rahaa Associate Layout Pvt Ltd
What is the best investment opportunity of all ?
Land investment
Why Land investment is best compare to other investments?
We have various investment options
Fixed deposit: The amount can only be doubled in 10 years if not touched till the last day of the term.
Gold: Price may go down from the invested price. For people who invested in 2011 December for Rs. 22,232 per Sovereign it got depreciated to Rs. 20,072 per Sovereign today. Also each time when we purchase & sell their is loss of around 10% to 25% in the form of wastage & making charges.
Shares/Mutual funds: High risk involved as the invested amount can appreciate or depreciate.
Apartment: Only the UDS value will appreciate as we own only that though we have paid for the entire apartment. Also when a loan is taken, the bank - rate of interest is higher than the rent collected which will end up in a loss as an investment compare to Land investment. Land is the best because it can appreciate from 10 times to even 1000 times depends upon the growth drivers around. It has happened already to many areas in the past.
How to find the right company?
Its always better to buy from the big companies which have 1000`s of customers already & also better to buy from companies which sell their own property unlike mediator companies which only promote but not own the same.
How to find Right Property?
We have to do some homework on the location of the property. Should analyze existing amenities & various proposed growth drivers both within the Site & also around the entire location which can give you study & gradual appreciation.
How to check whether the project is priced rightly?
Generally in the land business the transaction starts from Village Land owners -> Aggregate -> Developer -> Promoter -> Customer for all the small companies & small projects where each mediator will have their margin & final rate will be high. When we buy from big companies where they do Aggregation, Developing & Promotion themselves we can gain by buying at the best price.
Note:
Appreciated Price after few years for each location will be the same irrespective of what price you bought years ago. So, buying at the right price is equally important like buying at the right location to have a great appreciation.
How minimum can i invest ?
As for the land investment, even a small amount will turn into fortune after few years.
Bank Loan, EMI available ?
Bank loan is depends on the location. But today we have companies providing very simple EMI schemes with minimal & affordable down payment without any eligibility requirement. So the excess amount whatever it may be can be invested.
How to avoid ending up in a mess of Forge documents or lithification etc.,
Its always better to do a small refundable advance & check the Parent documents, latest updated EC & Patta whether its in the name of the company to which we will be paying, before completing the full payment.
Documentation & Registration charges?
Though it has to be bared by the customer, in order to encourage the customer to close the deal quickly most of the companies do it free of cost.
Buy Back after few years?
When we buy land from huge projects of big companies having long term vision in developing the project, we can either sell it back to the company or can use them as a bridge to sell our property easily. If they have plans of construction, we can also use their service to avail it at a cheaper cost than we can do on our own.
Maintenance?
Its better to check with the company whether they will maintain it for another 5 or 10 years before buying & also make sure the company will provide free site visit as a part of their service to all its customers so that u can visit the place periodically.
Regards,
Mr. Gunasekaran Adhiseshan
Rahaa Associate Layout Pvt Ltd
Property, Residential Real Estate
+91 9841 237 237
