Sri Lanka has been on the radar for property shopping. Land in Sri Lanka is available in abundance and who would not settle for a beachfront property or just a piece of land.
The latest 2016 budget has brought the middle class group closer to their dream of buying a property in Colombo. There has been a boom in both the commercial and residential property markets.
Buying a property in Sri Lanka – here is what you need to consider.
Unit of measurement:
In Sri Lanka, land is measured in a unit called Perch. (1 Perch = 25 square metres). There is a limit to the amount of perches a person can own which also depends on the location and may vary from place to place. It is best, to obtain legal advice of the location specifics, if you wish to purchase property.
Keep up with the trends:
With the changing income structure, middle-income groups are becoming the target audience of many real estate companies. With information at your fingertips it is easy for you to do your own R&D on the different pointers before you take the plunge. It is important that as a buyer, you are aware of the latest trends and are well informed about property markets.
Know your bank:
Banks such as the Sampath Bank, Commercial Bank, HNB, Bank of Ceylon and Pan Asia Bank have been extending loans to smart buys at competitive interest rates. The banks have also tied up with builders to offer attractive schemes to their potential customers. With a variety of available options, it is now easier for you to make a choice.
Using legal advice:
It is always advisable to engage a lawyer with a property or land deal in Sri Lanka. There are number of mandatory steps that need to be taken into consideration whilst purchasing a property in Sri Lanka. To know the exact documentation and procedure it may be beneficial to get proper legal advice to avoid a hassle free transfer of ownership of property.
Incase of new projects, you may not have to go to through a price negotiation process. However, in case of resale properties, you may have to do your research in terms of the pricing. It is recommended that you check and compare the property prices of a particular region and settle on the price for the property.
Changes in property laws for foreigners:
The recent times have seen changes in property laws pertaining to foreigners. Foreigners are now prohibited from buying property in Sri Lanka. However, there may be other ways to invest in property for instance, by acquiring a local partner.
Real Estate Companies:
The Ceylon Investment Group, Home Lands LK, Prime lands are popular real estate companies, that offer assistance when buying property. You may want to check on the credentials of a real estate broker before you engage in a property search with the estate agent. An experienced real estate agent could be quite helpful in the decision making process on a piece of land and provide useful assistance with the relevant paperwork.
by Rahaventhan Kaliappan