A plot is one of the most overlooked and misunderstood real estate investments in India and around the world. But real estate experts point out that land is capable of producing some serious cash flow and it’s one of the best investments on earth because of its versatility and limited supply.
But land as an investment option has always been popular in India. Its popularity has not narrowed, despite the availability of multiple financial products such as mutual funds, equity shares, fixed deposits and gold.
Investment in plots continue to remain popular and rightly so, as land is the only asset that has increased in value by over 800% in the last 20 years.
This is the reason why more and more Indians are investing in plots today. Traditionally in the developed countries only wealthy individuals, families and companies did so. A plot today is a key asset that can be sold or shared for future development gains.
The best part is that the demand for land is ever-increasing and that there is limited land on sale, which is certainly a positive point for all those who are interested in investing in plots. Moreover, purchasing of plots is much easier in a township when compared to buying residential property.
Do note that land is a tangible asset unlike stocks and shares; and because of constant increase in demand and limited supply, one can be sure of boosted profits.
Investment in land is a simple and transparent process and is not as complicated as investment in shares and stocks. In any case, when you invest in a plot in Hiranandani Parks, Oragadam, the entire paperwork and documentation is taken care of by the Hiranandani team.
The cost of land is comparatively lower than residential properties and hence is affordable. More importantly, it gives the owners to construct dream villas depending on their unique taste, preferences and needs.
Since plots are available in different sizes, you can invest in a plot based on your budget and can choose to construct a home on it when you have earned enough money for construction.
When you buy from a trust-worthy and credible builder like Hiranandani Communities, there is no need to check the plot papers diligently to protect yourself from fake registration papers and from property that is stuck in court litigations. We have all come across stories of encroachment of land causing investments to sink. It is highly recommended that potential investors protect their interests by investing in a plot inside a township for the simple reason that you get to enjoy all the amenities within the township, like a swimming pool, sports facilities, gym, golf course and more, apart from being a part of a closely knit community that shares your tastes and interests.
According to a real estate advisor, due to its limited supply and the ever-increasing need, the demand for land has only been going up. However, this continuous demand has ensured that the price of land hasn’t experienced volatile changes as with other assets like gold and equity.
There seems to be a myth that land is a big ticket and non-liquid investment and the amount of money required to invest in land is substantial. And those with less savings, cannot afford to invest in land. But this is far from the truth when you invest in a plot within a township. For instance, at Hiranandani Parks you can own a plot for as low as Rs 15 lakhs!
Apart from the budget flexibility, you get exactly what you want. You can design and build the villa of your dreams; you won’t have to spend money redoing a brand new flat to fit your exact needs. Depending on the regulatory environment, you have the full freedom to build whatever design you imagine. Plus, you can customize every inch of the interior.
You can install the most energy-efficient systems that will enable you to save on your power bills. What’s more, if you are ‘green at heart’ you can use sustainable materials that are environmentally friendly and will not leach chemicals in the future. You can also choose from a wide variety of non-toxic and hypoallergenic building products.
Another advantage is rather personal. There is indeed a particular emotional attachment to choosing everything in your home from lighting fixtures to door knobs or paint color. You have the ability to create this brand new expression of who you are and what you represent.
That’s right. You are your own master. When you invest in a plot you get to choose as to how you want to build your house. You are your own designer and architect as you can infuse your personality into your home. The end result is a projection of your taste and an extension of your personality.
While it may seem like the upfront costs of buying land and building a home can be higher, you could experience a greater ROI, making it easier to recoup your investment. In addition, a new villa based on your specifications require fewer costly repairs and less maintenance.
When you invest in a ready-to-build plot you don’t have to wait for completion and possession, they are usually ready for construction. Also when you build your home on your own, you are not bound by any timeline. You surely would like to finish the construction soon enough, but you are not answerable to anyone.
Finally, we asked an investment consultant what he thought about investing in a plot. His observations follow.
A plot is a tangible asset unlike shares or bonds, he says. If the markets are stable the plots would appreciate significantly. The value of the built house can depreciate due to wear and tear over time, but the value of land depreciates in the rarest of rare situations.
The value of a plot is likely to increase faster and also within a short span of time. A plot will not decay ever. A building not constructed properly may decay and depreciate in value, but the value of the plot will only appreciate, the consultant noted.
The cost of a plot is lower and hence more affordable. Real estate in whatever form is a sound and profitable investment as compared to other forms of investments sums up his view.
If you need assistance figuring out the process of buying land and building a villa, contact Hiranandani Parks. We have plenty of excellent plots in different sizes for sale. We can help recommend everyone you need from architects to contractors apart from managing the entire documentation. Schedule a consultation. You’ll be so glad you did!