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.
B) 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 Devenahalli in Bangalore 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
Bangalore. 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 proper approval for the scheme has been sanctioned by the competent
authority. 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.
C) Buy Land around developed up coming Industrial Area
This is another area where in investment made could fetch an expected high
return, for instance if a new airport or an 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 begha 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 (Punjab),
Bareily (Uttar-Pradesh), Hissar (Haryana), Kota (Rajasthan) and Gwalior (Madhya Pradesh)-
will multiply fast particularly in the 21st century when the government is envisaging an
expenditure of nearly Rs. 3000 crores 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 spots which 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.
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