Pros and Cons of Investing in Plots
Now a days Real estate investment has always been one of the choicest investment options for Indians for various reasons. But plot owners who are evincing interest in investing in it need to take into consideration certain important factors.
Firstly, you should ascertain if the market conditions are encouraging for undertaking such a proposition. You need to be sure that buying a piece of land in a particular area will fetch you returns. If the answer is yes, you have to weigh both the advantages and downsides or seek advice from Sterling Heights, a Hyderabad-based realty company.
Advantages of Investing In Open Plots
1. Lower investment costs
The prices of vacant pieces of land, especially in India, are more budget-friendly when compared with independent villas and apartments. Moreover, the property tax on plots is also lower than it is for homes. You also need not spend much on the maintenance of the plot.
2. Higher returns on investments (ROIs)
The prices of open plots tend to increase more substantially than they do for residential assets if they are located in areas that are likely to witness growth in the future. For instance, if a plot is close to a highway or in a location where a considerable amount of money is being invested in developing necessary infrastructure, its value will surely appreciate, yielding profits to its owner.
3. Easily manageable
It is also easy for owners of uninhabited lands to manage their properties much better — even from distant locations — than homeowners, as their properties do not attract maintenance overheads, unlike individual homes or apartments.
4. Avoidance of damage
Plot owners need not worry too much about trespassers damaging their property.
5. Ease of purchase
Purchase of plots is much faster and seamless than homes.
6. Provision of choice and flexibility
People have much more leeway while purchasing vacant pieces of land according to their needs, as the prices are more affordable. Plots can be used for various purposes as well. While some may wish to build homes, others may opt to go for farmhouses or poultry farms on the plots. While constructing your home on your plot, you can tailor it as per your requirements. Meanwhile, you cannot buy independent houses or apartments in customized designs. You also have the option to choose your neighbourhood as per your preferences.
The downsides of investing In Open Plots
1. There is, however, the danger of land being acquired by the state or central governments in India without issuing any notification to its owners. In such a scenario, persons who have purchased lands legally have to file petitions in the court to get their land back or to be compensated as per the market price. They also need to ensure that there are no encroachments on their properties.
2. To buy homes, banks offer loans that can be repaid in equated monthly instalments (EMIs). They provide no such financial assistance for buying lands. Only if they are bought from the development authorities of the government, both central and state, banks lend money.
3. People seeking home loans can avail tax benefits for repaying both the original amount borrowed and interest on it with the Income Act’s benefits provided under Section 24 and 80C. On the other hand, parties wishing to buy plots are not entitled to any such privileges.
4. For ownership, the land is in short supply in our country owing to the large number of buyers wishing to buy open plots in hyderabad . Despite that, the land rates continue to be high.
5. You also have to undertake due diligence by properly assessing it because tax provisions are ambiguous in India. You can run into trouble if you do not do so and end up losing money.
To avoid all of these aforementioned hassles, you have to ensure that the plot you want to buy has a sellable title.
You also have to procure the title deed, known in some states as the 7/12 document, for the land to clarify the name of the seller who possesses the total rights to sell it.
Sterling’s Aster Meadows offers plots, ranging from 200 to 300 square yards, for purchase in Bhanur, Patancheru, one of the most popular suburbs of Hyderabad. It is a very attractive investment opportunity in one of the fastest-growing cities of India, as it is just off Nehru Outer Ring Road, leading up to the Mumbai Highway.
Talk to us on 63663 70422 to know more.