Here’s what you need to know about buying a plotted development in Chennai

Here’s what you need to know about buying a plotted development in Chennai

by Godrej Properties Limited

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What is a plotted development project?

A plotted development project is when a tract of land is subdivided into smaller plots that are sold to buyers. Generally, these plots are vacant and they are bought for constructing residential or commercial buildings.

Factors to consider before buying a plotted development project in Chennai.

Are you considering investing in a plotted development project in Chennai? It can be a lucrative opportunity, but it is of crucial importance to make an informed decision. In this article, we will discuss the key aspects you should consider before making your purchase. Whether you're planning to build a residential or commercial property, all these factors will help you choose the right plotted development project.

Evaluate the location: While checking out the infrastructure like connectivity and amenities, have an eye on the proximity to the places that frequently need to be accessed, like schools, the workplace, hospitals, markets, transportation hubs, etc. Closeness to IT Parks and commercial complexes will fetch a greater rental value. In Chennai in particular, it makes sense to know how the drainage systems work and the condition of the roads. Some areas could be facing drinking water supply issues too.

Assess the amenities: Take a look at the amenities provided by the project. Features like parks, parking spaces, backup generators, clubhouses, and gyms can enhance the overall appeal of the development. Don't forget to assess the availability of essential infrastructure such as sewage and drinking water facilities.

Forecast future developments: Ascertain the future developments in store in and around the locality of the project. Upcoming proposals for new roads or widening of existing roads, for new flyovers, metro train lines, etc., would certainly have the potential for greater capital appreciation. There have been instances where such further projects brought greater strain to the existing infrastructure leading to traffic congestion or sewage disposal issues. All these factors could impact capital growth.

Double-check size and price: Quite often, these two points tend to get overlooked. The size of the plot should be right for the house being planned and the price should be within budget. It also makes sense to personally verify the dimensions of the plot being bought. Often, several buyers would plunge right into a project and end up facing financial issues at the final stages of construction.

Find out finance options: Developers have tie-up arrangements with financial institutions that could arrange home loans for buyers. It could make financial sense to avail a home loan to derive the tax benefits therein. But please go through the different options—the rates of interest, the prepayment clauses, the duration of the loan, the processing charges, etc., before choosing a scheme.

Pin down the payment terms: Some developers take a down payment to register a plot and ask for payment in installments as construction progresses. This not just eases the buyer’s cash-flow, but also helps to schedule and plan the payments.

Engage legal expertise: Property investments need great scrutiny of the legal documents being prepared and it is always advisable to deploy the services of a competent lawyer familiar with the transfer of property transactions.The Sale Deeds may be in order but there could be plan sanctions and government clearances that need to be sought before embarking on construction.

Find out future resale value: While property values, especially in fast-developing metros like Chennai are generally on the rise, the growth is much faster in certain localities, and in some select areas within the same locality. One should do a detailed check and compare the pros and cons  of different projects before taking an informed decision.

Determine the right developer: Before investing, thoroughly research the credibility, capabilities, and track record of the developer. Look into their past projects and interact with buyers who have previously purchased from them. This will provide insights into the developer's efficiency, expertise, and dependability.

If Godrej Properties is the developer in question, the buyer can be certain that most of the above points have already been factored into the project and the past performance record of the Godrej Group for over a century of consistently delivering on quality and their promises will speak for itself.

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