Why is it beneficial to buy a plot in India?April 22, 2021 . Home Buying Insights . 10 min read
The recent pandemic has changed the preferences of homebuyers majorly. With the prevalence of a work-from-home situation, now young professionals are exploring locations outside of the crowded cities, to experience living in standalone houses as opposed to cramped up apartments. It’s no wonder that the demand for plots and plotted developments in cities like Bengaluru, Hyderabad, Chennai, Pune and Gurugram, has seen a momentous rise in recent times as per an Anarock report.
Further, investing in land is seen as lucrative in India because it yields high returns at a relatively lower cost of investment. Also, for homeowners, buying a standalone plot means they now have the flexibility of building a house consistent with their tastes and budget constraints. However, before investing in a plot of land, several important aspects like cost of building, appreciation, financial assistance and income have to be assessed. We are here to help you with that, read to learn more.
Why invest in a plot of land over a ready-made home?
- Low investment
The cost of a vacant plot of land is comparatively lower as compared to residential apartments due to the absence of construction costs. Making buying a plot of land a cheap and budget-friendly capital investment for young professionals who are looking for affordable yet spacious housing options.
- High returns
Land or plots have been recorded to show a higher rate of return. Moreover, in case you have bought a plot of land in an area with good infrastructure or development scope, its price is sure to appreciate by leaps and bounds shortly. Considering these guaranteed high returns at relatively less costs, it is no wonder that buying a plot is seen as an excellent cost effective investment in India.
- High flexibility
Buying a plot of land gives you the flexibility to design a house as per your tastes and space requirements. Also, even if you decide at a later time that you do not want to build a house on the plot, you can always resell it. Both ways it is a win-win scenario for you because the returns on land investment in India tend to be alarmingly high.
- Freedom of customization
A home reflects your personality, your lifestyle and everything that makes you unique, which is why only you have the right to decide how it will be built. Buying a plot of land ensures you get to exercise this right in its true sense, where you are not just investing in a plot but a blank canvas that you can paint your dreams on. Moreover, keeping in mind that your preferences keep changing with time, building a home on your plot, gives you the sovereignty to make any aesthetic changes to your home, as and when you please.
- It appreciates in every aspect
An apartment’s value increases consistently over time. However, the owner of a plot can get considerable returns on his investment if they plan wisely by constructing multiple floors and renting them. Moreover, a limited supply of land ensures higher competition in the market, leading to increased price points. Purchasing plots purely for investment purposes can yield healthy profits, too.
To buy a plot requires a down payment. HomeCapital provides down payment assistance for plots. Such assistance is highly beneficial for young buyers who usually do not have enough savings to pay the entire down payment upfront. The amount borrowed from us can be repaid in 12 easy EMIs.
Important factors to keep in mind before signing the plot ownership deed:
- Verify the seller’s claim to the plot through original documents and deeds.
- Rectify the title deed properly, to ensure that the transfer and legal ownership of the land by the seller is undisputed.
- Collect any previous tax receipts generated from the seller for further verification.
Final thoughts on buying plots in India
If you are planning to buy a plot, evaluate the property in terms of the future growth prospects, that is if any infrastructure project is coming in the nearby location and how good is the connectivity. Better connectivity and upcoming infrastructure projects increase the chances of value appreciation of plots.
Also, keep in mind in the case of agricultural lands, only a small percentage of the property can be used for house construction. In some states, you need to qualify as an agriculturist to buy such land.
Further, for lower risk of dispute on the title, better security and amenities, one can also look at gated plots offered by reputed developers. It would be remiss to note that, gated developments offer better amenities compared to standalone plots. Also, building a house on your own requires a fair amount of time and effort so you can alternatively consider buying a plotted development from a reputed developer.
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