Many people in India prefer to buy land mainly because of the return on investment they get. This is because land does not include any construction costs, buying it is much more affordable than buying a fully furnished home and it’s a scarce resource due to which its scope of appreciation is high.
You can earn high revenue by investing in a plot or purchasing it in a developing area. This area will be transformed, and its prices will grow. Another way is to lease it out to get regular income. Some people may think that it is risky to invest in land. But if you are buying plots in Chennai that are DTCP and CMDA-approved and are taking care of other things, you can reduce the risk of this investment. You can do this by making sure that it has all the legal documents without any encumbrances. Besides this, you can also visit the site to measure the dimensions perusing the area for encroachment to keep any problems at bay. To invest in real estate, you need to understand the process. Here is a brief overview:
- Assessment: Assess the type of return you need at the initial stage, whether you want a long-term or short-term investment.
- Consultation: You must consult a legal and financial advisor for guidance on the basis of the financial portfolio so you can build it further.
- Avenues of investment: Explore and understand the different kinds of avenues of real estate such as REITs, fractional ownership, or real estate mutual bonds, etc.
Advantages of Buying a Plot
There are many reasons why many people buy plots as they offer many benefits, as mentioned below, take a look:
- Multiple uses
You can customise your plot for any kind of use in the future. You can also make use of it in other ways such as hiring a developer for the construction of residential developments or entering into a joint venture agreement with a real estate developer under RERA. By doing this you can get an exit route as an investor and attain your share of profit.
- Investment in Budget
It can be tough to buy plots in metro cities like Pune, Delhi, Mumbai and Bangalore because the property prices are higher. Hence, it is ideal to buy a plot in emerging areas on the periphery of the cities. These areas have many residential plots that you can find at competitive prices. Others who have no budget constraints can choose more lucrative options. But people who are not cash-strapped buyers or those who want to invest in their second homes or vacation homes can find them in peripheral areas of the city.
- High resale value
These days, the plot rates in Chennai metro city, Ahmedabad, Pune, etc., can have a significant rate of appreciation. If you make the right investment, you will see a high rate of appreciation. If you compare the resale value of a constructed property to a parcel of land, you will find out that the rate of appreciation in the case of land is higher. This is because there is a limited supply of land, leading to higher competition in the market and an increase in price points. Additionally, it has a limited impact on any foreseeable damage that can be caused by nature.
- Less maintenance
If you buy a house, you will need to spend a lot of money on its maintenance, whereas the cost of maintaining a plot is quite low. For a plot, there is no need for recurrent repair or remodelling. All you have to do is get it mowed and fenced to maintain it, and for surveillance, you can hire a guard. There is no need for any other additional maintenance.
How to Keep Your Plots Safe?
To keep your plots safe from any illegal occupation, here are some measures that you must take:
- Documentation
Make sure that you have all the necessary documents to prevent yourself from land-related frauds caused by buying from unreliable realtors. Get these documents verified by a professional lawyer, including the title deed, encumbrance certificate, and government approvals for security.
- Boundary wall
Get a boundary wall constructed to prevent any trespassers from entering your area.
- Hire a caretaker
To prevent any illegal possession, you must hire a caretaker to guard your area.
- Gated community plots
Rather than doing all this, you have the option of looking for a plot in a gated community of a reliable real estate developer in your area for a higher level of surveillance.
If you face any difficulties in safeguarding your plot even after taking these measures, you can report them immediately and seek help. Though land investment has many benefits, it comes with its own limitations. So before you buy a plot, make sure you do your research and find a reliable real estate developer for the best investment opportunity.