Thinking of buying a land in Nepal? Here are a few things to consider before buying land in Nepal?
Real estate is on the rise in Nepal, mostly in urban areas like Kathmandu and Pokhara. Landowners are getting richer and the demand for land is increasing. The value of land is usually appreciated. When the population rises, money enters the real estate market. Buying land in Nepal has been the trend for many years.
You might have some unanswered questions if you are even thinking of buying land in Kathmandu. Here we bring you the list of these things:
One of the basic things to consider before buying land in Kathmandu, is its price. Various factors determine the prices of anything and the same is the case with the land. Everyone must understand these factors. Mostly, market demand and supply determine the prices of land in Kathmandu. The price of land is the most crucial factor that helps you in differentiating whether the land is worth buying or not.
Land price comparison is the second thing to consider before buying land in kathmandu. The closest land to marketplaces has higher prices. You may compare prices accordingly as you move more and more in the heart of the city. Around Lubhu, Thankot and Chobar prices are around 5-10 lakh per anna. On the other hand, prices go around 10-15 lakh per anna around Teku and Kalanki. Market uncertainties and political instability also largely determine land prices. Moreover, prices may exceed more than 60-80 lakh per anna in city centers. They include places like Putalisadak and New Road.
Making smart decisions is the third thing to consider before buying land in kathmandu. Buying land in a country like Nepal is a life-long investment. You might end up in massive debt if you are unable to make a wise decision. Financial pressure and burden will decrease your likelihood of future success. People usually make hasty decisions before buying land. Smart decisions however might take some time.
Research is the most basic element for any financial decision. On top of that, buying is one of the major financial decisions. The real estate is very big and if you don’t understand it, you may get lost. Get as much information you can about the location by talking to the community people, friends, or relatives. Ample information about the seller and the land is very necessary before buying land so that you don’t regret it later.
Buying land is a long-term investment. You should have a clear vision of 10 to 20 years before buying land. If you are keeping the property as a security, you need to observe the location. Check whether the land can develop in the coming years. You need to pick a property that yields the highest interest over time. Moreover, think about community development over time.
If you are taking a loan, you need to properly plan it. You might not be able to pay if you are taking a heavy loan at first. On the other hand, if you are investing your own money, consider other factors that might affect you in the long term, the land is not a liquid property, unlike shares and debentures. Therefore, reselling it quickly is impossible due to various legal restrictions. Managing finances is very important while buying property.
The land buying process in Nepal is not that easy. You have to go through several government offices to register the land. Similarly, ownership transfer of the property is also essential.
You need to procedure various outlines before buying land. It is better to hire a real estate company to figure out all the procedures. However, if you wish to follow the traditional approach, you will need to apply for an appointment with the concerned authority. You may also submit various applications online through the website. Seller and you will meet the lawyer to proceed with legal provisions. The buyer might have to pay several registration fees and taxes.
This is the amount paid when selling land to a new owner. In the case of a buyer, your seller might ask to cover these costs too.
This is the tax amount that you will have to pay every year. The tax is paid on account of gaining ownership of the land. There are two types of tax on this: Municipal house tax, and Property Tax.
We hope that the above article was useful for those who are thinking of buying land in Kathmandu. There is all the necessary information and extra costs that may incur. Do not forget these things before you are investing in long-term assets such as land.