Buy Residential Plot in India
“Buy land, they are not making it anymore.”
Most of you must be thinking about buying land somewhere, while many are confused as to what to buy- plot or flat. After analyzing the trends in the real estate sector, many of us will arrive at the natural solution of buying either of them. But there are benefits for investment in each of them. Let us draw a comparison here and you will be able to identify the best choice for yourself.
Firstly, let us see in brief the benefits of investing in real estate. The previous article(why invest in real estate) lists them out in great detail. Here is a recap of the same.
- Less Volatility than Stock Markets
- Reduced Tax Burden
- High Return on Investment
- Transparent, Safe and Secure
According to the Economic Times, it is a bad idea to buy a large, indivisible asset if you possess limited or no assets. It is wise to first invest money in small saleable assets like mutual funds, bonds, etc. However, investing in real estate has its own benefits.
Why invest in plots?
It is always a big decision when it comes to investing all your savings in a property. However, many buyers are in the dilemma of whether invest in a flat or a plot. This confusion is common in an average Indian buyer. A luxury investor with a number of properties would have gained the expertise or has advisors who are suggesting a variety of options to them. However, the common man who thinks of investing in a property will have limited knowledge and is prone to taking decisions on his own. To help such investors, here is a list of merits and shortcomings of investing in a plot. The pros and cons of investing in a flat have been discussed in detail in the previous article. Why Flats
In the previous article, we have seen the benefits of buying a residential flat in India. While there are many advantages to buying a home, it is also very wise to buy a plot in India for it possesses a different set of benefits.
In this article, we are going to analyze the same parameters as we have done for buying a residential flat in India. You will find that it is an entirely different face of real estate than buying residential flats in India. By the end of the post, you will be in a position to make up your mind about investing in a residential flat or a plot, suitable for your own needs.
Here is a list of parameters that we are going to analyze and a brief comparison between how they vary for a residential flat and a plot. This will give you an overview of what we are going to discuss through the post.
Now that you have a brief idea about the parameters to take into consideration, let us discuss them in detail.
Parameter 1: Value Appreciation
Compared to flat, the land is a limited commodity in India. So if you buy a plot and a flat in the same locality, the price of the plot is likely to appreciate at a faster pace than a residential flat in India. For example, if you buy a plot near Yadagirigutta- Hyderabad and your friend invests in a residential flat at the same location, your plot will relatively appreciate as compared to his/her flat. This gives you an added advantage over buying a residential flat.
Parameter 2: Construction Flexibility
Construction of a home in a vacant plot is a test to your imagination and affordability. With the right budget and planning, you can make the dream of owning a house into reality by taking up construction on your own plot. Also, you can make the relevant changes in the property and expand it throughout your area of the plot without any hassles as and when you desire. This flexibility is not available for residential flats which come with limited flat area for each individual, fixed throughout the apartment complex.
Parameter 3: Possession
There is no need to worry regarding the possession of the plot as there is no construction is needed. As soon as the registration formalities are completed you can take possession of the land which is not the case for flats. The buyers need to wait till the builder completes the construction and hands over the flat to them, ready to occupy. This, however, comes with certain difficulties like delays in project completion and quality of construction.
Parameter 4: Risk
There are two types of risks associated with buying a plot in India: One, the vacant plot of land is prone to encroachment. Two, there is the possibility of litigation lands changing hands without the knowledge of the buyer. You should be extremely cautious of these challenges and hire an expert for document verification and any litigation charges against the property.
Parameter 5: Quality
There is no need to bother about the quality of construction for a vacant plot of land. However, if you are particular about Vastu and such sciences, it is better to get the land checked for its facing, and especially if it is low-lying refrain from investing as you might face difficulties while constructing a structure.
Parameter 6: Bank Finance
It is easier to get bank finance for buying a constructed property rather than a vacant plot of land. The documentation and requirements are tedious in this case. So, only invest in a plot if you are able to afford the full costs and expenses since there is no guarantee of loans for buying such properties.
Parameter 7: Income
There is no immediate return on investment for a plot unless it is suitable for farming and is leased out for agriculture. If you are looking to park your money for tax savings and future stability, the land is the perfect venue for investment.
Parameter 8: Convenience
If you are looking to construct a house on the plot purchased, it can be a cumbersome process. You are required to monitor each aspect of construction right from the quality and quantity of materials to the completion of the construction. If you are someone who can invest such time and money in the construction, then this is the best suitable investment for you.
Parameter 9: Security
Constructions not located in gated communities or townships need to invest in a security system to ensure the safety of their home and family. This can be an extra burden on your investment. Then again all of this depends on your affordability.
Parameter 10: Accessibility
We cannot be sure if all the amenities are available at the site. This, however, should not be a hindrance to those who have proper means of conveyance or if the vacant plot is located somewhere closer to the city.
Parameter 11: Suitability
Investing in a plot is suitable for those individuals looking for large investments, those who have enough time to invest along with their money for the upkeep and security of the property.
Whatever is your purpose for investment in land, you must check the plot papers diligently to protect yourself from fake registration papers and from property that is stuck in court litigations. Having said that it is highly recommended that potential investors protect their interests by hiring the services of an expert for document verifications and such other parameters.
Plots carry a good resale value as well. It is a fact that many buyers prefer investing inland and then building their own houses in line with their personal taste and style. Due to this flexibility on the plate, plots are very much in demand.
We have already seen how attractive residential plots can be. However, the locations of these also matter a lot. What makes the Honeyy Group residential plots in Hyderabad perfect for investment? This is due to the fact that the Honeyy Group projects are situated in close proximity to the city. It is also well connected to the Outer Ring Road, which is developing at a rapid pace. It also has good shopping complexes, hospitals, and multiplexes nearby. So, while investing in residential plots consider all these aspects for your own benefit.