Guidelines on how to make Investments on property for a better yield
Avoid Investment at Areas near Metros
This is the first step towards a profitable investment in land that is to avoid already highly priced areas. The reason being, such areas are not likely to double in the next five years. The yardstick is based on the fact that if a person were to invest his surplus in Indira Vikas Patra, the investment would double in next five years. In other mutual funds it would quadruple in 10 years. Such levels of appreciation may not be possible in place of areas where the prices are already high, in fact the yearly appreciation would not even match the yearly interest from bank fixed deposits. To summarise the above, avoid purchasing land in highly developed localities. One may go in for such expensive land only for building one's own house.
Invest in Developing Areas on the outskirts of the City
The value of such land where money is invested is likely to increase substantially and at a much faster pace.
A classic example can be Baruipur in South 24 Parganas, where the proposed International Airport is coming up, people began investing in land here just a few years back and the appreciation in the last three years have been much faster than anywhere else in Kolkata.
However, the hitch here is that to ensure that the titles to the land are clear. If a builder or a promoter has converted agricultural land into a housing colony you must ensure that the competent authority has sanctioned proper approval for the project, along with necessary processes. You must also personally examine the approval certificate, the No Objection Certificate and sanctioned plans. The registration or the conveyance deed in respect of the land should be completed as soon as full payment has been made. Many builders/promoters offer land on instalment basis. In such transactions, make sure that the transfer charges on the land for subsequent retransfer by you to another person are either nil or small.
Buy Land around developed upcoming Industrial Area
This is another area where in investment made could fetch an expected high return, for instance if a new airport or a university is to come up in a particular town, the price of land will automatically shoot up. Acquisition of land in places where religious centres are located would also fetch high returns. For example, in Haridwar if the price of the land was Rs 5,000 per bigha 10 years back it would be worth approximately Rs 3,00,000 per bigha today.
Similarly investments made in the townships surroundings of Delhi but within the National Capital Region is bound to pay back rich dividends, for example five states near Delhi have been selected as counter magnets… Patiala in Punjab, Bareily in Uttar Pradesh, Hissar in Haryana, Kota in Rajasthan and Gwalior in Madhya Pradesh…will multiply fast particularly in the twenty first century when the government is envisaging an expenditure of nearly Rs 3000 crore for the development of these towns in the eighth plan.
Purchasing of land in the place where a proposed big factory is planned could also multiply your investments. Similarly, investments made near the places adjoining Delhi could also fetch handsome returns after about five years. In any case it is worth the wait. Investments made in new tourists destinations that are being developed by the government are also areas where money invested could fetch profitable returns in the near future.
To conclude, for quick and sure chance to make money on your investments in land transactions, do not invest in already high priced lands but go in for upcoming areas.