Plot investment has several advantages, which have been further summarised to give a clear idea and enable maximising benefits. Due to several benefits and the fact that real estate is unquestionably the most stable investment option, buying land is now preferred over purchasing a flat. As a result, buying land has grown in popularity, and there is now much more demand for it due to various factors.
Greater Flexibility
The apparent difference between purchasing a parcel of land and purchasing an apartment is that the latter offers less room for customization because it is constrained by the architect's ideas of how it should or can be constructed. On the other hand, a parcel of land is comparable to a blank canvas where you can start from the beginning and build your dream home, where your ideas and input are essential. As a result, it delivers better flexibility.
Minimal initial outlay
Residential real estate is frequently more expensive than even the cheapest dwellings. The majority of prospective investors will fund the acquisition with a home loan. The cost of a plot of land is lower. Even novice investors can buy them without problems due to their low entry price. Many investors decide to purchase land early in life and then construct a home when they have more money. It frequently costs less than buying a property and making EMI payments.
Lower property tax
Whether they own a home or a piece of land, property owners must regularly budget for property taxes. On the other hand, land often has a far lower property tax than a house. In Bangalore, for instance, the property tax rates for residential properties might range from Rs. 5/sq.ft. for rented homes to Rs. 2.50/sq.ft. for self-occupied homes. Comparatively, the property tax on vacant land ranges from Rs. 0.12 to Rs. 0.50 per square foot. It implies that you will ultimately spend less on taxes in addition to the cost of buying a piece of property.
Low investment
Purchasing a home outright might be significantly more expensive than buying a residential lot and erecting a house later. Purchasing plots is therefore advised. Investors can buy without experiencing financial hardships or issues because it is more straightforward. However, your financial load may increase if you use home loans or EMIs to buy a house.
There is no lag between acquisition and ownership.
A house must be purchased while it is still being built before the buyer takes possession. Depending on where the construction is in the process, the final handover could take up to a year. When you own a piece of property, delays are less dangerous. As there is no need to build on the land, owners can quickly acquire new assets.
No maintenance costs
Whether or not you plan to live there, you must pay for maintenance. Some of these expenses are set, such as the upkeep charges made by housing societies. However, they frequently occur suddenly, like with plumbing, electrical, restorations, etc. A plot of land practically needs no upkeep. Therefore, owning land is possible for even the most passive investor without worrying about ongoing maintenance.
Finite Asset
Buying property or a villa plot has many advantages, one of which is that it is a limited resource. The construction of residential high-rises will continue, but there will be little available land. This element demonstrates to landowners that their investment in the land will be in high demand, which will lead to an expansion in the price of these plots.
Possession is not delayed.
One of the most significant benefits of purchasing a plot of land is that there is no waiting period between the time of purchase and the time of taking possession of the property, unlike when buying a flat. The project's stage of construction also has an impact on the date of the final handover. However, since the land is undeveloped, owners are free to occupy it as soon as they purchase it.
Conclusion:
Plot investment ensures tremendous opportunities because it provides the ability to build whenever the landowner can afford it and does not require higher maintenance costs. Furthermore, as land is an empty property and may be sold right away when prices rise, you can sell it without the inconvenience of moving any possessions.
© 2023 Rera News. All rights reserved.