Residential land, also popularly known as residential plots, is basically vacant land that is used for building houses. Investing in residential land is always considered as a safe bet in India. It is considered as a raw investment because it gives you the freedom to build a house you desire or simply re-sell the land when you wish.
While there are misconceptions that residential land generates no money, residential land, when purchased right, can produce some serious cash flow. And it always remains to be one of the best investments.
Residential land appreciates over time
No matter where you purchase residential land, its price will always increase over the time. It is even better if you buy land on the suburbs of a developed city. Since cities are becoming overcrowded, people nowadays prefer to live in the outskirts. Thanks to the study growth of companies, the government is forced to rethink the infrastructure of the city, paving the way for better connectivity with new roads and metros.
When the residential land you purchase gets better roads and is well-connected to the city, the prices of the land will skyrocket. For instance, take Whitefields. As working professionals prefer living closer to their work location, there has been a continuous demand for housing options, increasing the land value in the region.
If you’re planning to purchase residential land, it’s highly recommended you buy it in an upcoming region. You will see the prices shooting up within a year or two.
One of the strong reasons why investing in residential land is a good investment strategy is because land has no depreciation value.Unlike buildings, you don’t have to deal with tenants, leaking roofs, broken furnaces, bugs, and other issues that come with owning a building. Besides, land cannot be moved, destroyed, or affected negatively under any circumstances, be it natural or unnatural.
You have little to do!
With residential plots, you basically have very little to do in terms of management.That too, when you purchase land from a reputed property developer like Sizzle Properties, you don’t have to worry about the land being littered with garbage,ordeal with unwanted growth of plants, shrubs, and weeds as the developer will offer post-sales support to ensure your residential land is spic and span, well maintained, and free from any sorts of encroachments.
Besides the low land maintenance fees, the only expense for residential plot is the property tax that you need to pay to the government.
That said, however, you need to be absolutely careful while buying residential land. Because you need to ensure that the land is free from any legal disputes, has a clear Title Deed, has no issues in the Mother Deed, has no legal dues in the Encumbrance Certificate, has got no objection certificate from banks, has Khata Certificate to know the taxes are paid up-to-date, and so on. In short, you need to make sure the land is free from any hurdles.
While it’s hard to do all the verification on your own, approaching a reputed plot developer will ease the buying process for you.
Residential land is scarce
Purchasing residential land at a good location in an upcoming suburb or a developed city is becoming very expensive because of the less availability of the land.
Especially in a city like Bangalore, we are running out of land. As the city is densely populated and people are moving out to the suburbs, the availability of land in the outskirts is also becoming limited.
In the next 5 years, the outskirts of East Bangalore might get saturated, thanks to the upcoming infrastructure projects that will offer easy connectivity to the city. So the prices of the land are only going to shoot up as residential lands are becoming limited with each passing year. It would be nearly impossible to own land in the fast developing regions like East Bangalore.
So if you are thinking about investing in residential land in East Bangalore, it’s time you act.
What are your thoughts on investing in residential land? Think it’s a good idea or a bad one? Share your comments below.
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