So, after searching and having a nice look at the options available, we finalized a plot which was around half a kilometer away from our residence. It was a new colony, and we liked the location, as it was calm and quite, with a nice colony park, right in front of our plot.
We bought it around a year back, and at that time their were lots of empty plots in that area, including the one next to us. Now after about an year, we see that the price of land have be on riots ! Not that it was any less expensive back then, when we bought the plot, but in just an year we came to know that our neighboring plot was sold at about 30 % more than what we paid ! So this gives you an idea about how much has inflation affected the prices of land. We also came to know that in past couple of years, some biggies have put their money in this business, and hence they have cons pirated this abnormal price hike in real estate business.
Anyways, we bought a small plot of 40x30 for about 3.5 million INR which is about 75,000 USD. It was enough for us, as we planed to make it double storied house. In India, the registration of house a house is pretty expensive. The stamp duty is around 5 % of the value of the plot, and this is the reason that most of the people try to show the sales price as less as possible, in order to minimize the duty. This unfortunately encourages black money. Apart from it, around 50 K INR is to be spent on make other legal documents, and fees for the same.
We bought the plot under name of our mother, as the government provides some concession in stamp duty, if it is bought under woman's name ! Still, the actual value of plot turned out to be over 4 million INR, 4.2 million to be close to exact ;)
