Take These 4 Steps When Investing In Land

  Author: Sanjay Sharma

In the yesteryears, land was one of the most desirable investments along with gold. Today, while you have other attractive, more liquid, and more easily accessible investments like stocks and different kinds of mutual funds, investing in land still attracts many. In fact, investing in land, if done properly, can be a wise investment decision.

Land has the potential to substantially appreciate in price over the years simply because it is limited in supply. As famous American writer Mark Twain had said: “Buy land, they are not making it anymore.” At the same time, you need to be careful and keep a few important things in mind when you set out to buy land. Here are four such important steps you need to take.

Always buy land from government institutions They are bound to turn out relatively hassle-free, especially in matters related to ownership, when compared to land bought from private individuals. Though that does not mean you should never buy land from private institutions or individuals. It is just that government institutions provide you greater comfort in terms of clear ownership.

Prefer single ownership This is applicable if you are buying the land from private individuals. Multiple ownerships mean that the process of buying the land and the paperwork will be that much more. It is best avoided.

Scrutinise the title of the land Hire a lawyer for this purpose. Essentially, what he or she will do is check records to find out more about the title of the land. This is about what is on official records i.e. who owns the land, whether it is free from lien, property tax has been paid in full and that the land is not involved in any litigation.

 Construct a boundary wall and visit the land regularly You need to do this once the land has been registered in your name. This is essential as someone else may illegally occupy your property and it may lead to a long legal process.

There are few investments like land that can give you the assurance of appreciation thanks to its limited supply. To benefit from it, of course, you need to make a minimum size of investment, which not all can afford. But then, once you make the investment, and keep in mind some of the essentials which we just discussed, you can justifiably look forward satisfying rewards.