Investing In A Lal Dora Property? Take Note
It was in the early 20th century when the term Lal Dora —meaning red threat in English — was used while demarcating land in the national capital. Revenue official in Delhi used the thread to demarcate non- agricultural land from agricultural land. These land parcels were used by farmers and village to support their agricultural life. Typically, stores were made to stock agricultural produces and raise cattle. By and by, as the city grew, farmers sold this land for other purposes, too. Today, a great part of Delhi’s population resides in homes built on Lal Dora land. These properties give people an option to afford a home in a city known for its unaffordable property in the world.
In case you are also planning to invest in such a property, there are certain facts you must be aware of.
The legal aspect: Earlier, it might not have been entirely safe, legally speaking, to purchase a Lal Dora property. Since these areas do not fall under the ambit of municipalities and properties were often not registered, getting water, power and utility connections were also difficult. The same is not true anymore. You could get the property registered at the tehsil office concerned and use the documents to apply for utilities. The Delhi government also issues Lal Dora certificates to owners of such land, establishing their ownership. IN case your property is not registered so far, visit the office of Sub-Divisional Magistrate in whose jurisdiction the area falls. Submit your application along with an affidavit stating details of land and the owner.
The money bit: Lal Dora properties cost much less than a property falling under the limits of the municipality. In fact, there could be a hundred per cent difference in prices of the two properties. Owners whose property is built in an area not exceeding 200 square metre do not have to pay house tax either. But, your own finances are all you have if you are buying such a property. As a standard practice, banks do not fund property built on Lal Dora land since it is hard to get clear titles.
The nitty-gritty: You are certainly saving big bucks and getting a spacious house in a city, not really “affordable” if you invest in a Lal Dora property. However, there are certain compromises that you will have to make here. Lal Dora area is often under-developed, there proximity to Metro stations notwithstanding. They do not have the same robust road network as their municipal counterparts, for instance. Also, in case you have to sell the property in future, finding a buyer could be difficult, considering only those buyers who have enough personal funds and are willing to take the risk would come forward.