benefits of owning land: What is Land Development? Newsletter

investment in land

After plot investment make your home what you have dreamed of for so long without harassing your pocket. It is one of the most reliable forms of investment because of the manifold returns it carries with itself. It helps in creating long-term assets and securing one’s future. It is the method that can ensure an abundance of financial security and there is hardly any chance of loss over here. In this blog, we will be learning about the benefits of investing in residential plots. Check for the potential of the neighborhood and its growth aspects to get a clear picture of the future.

property tax
benefits of investing

Although you can submit a report and hire a solicitor, it involves a legal cost that may leave a big dent in your pocket. If you are buying agricultural land, it is important to check the ownership details for the last 30 years. Agricultural land can be taken by the government for infrastructure development or commercial projects. Many urban people in business in India anticipate the possible returns from the many agricultural property types located in the suburbs and surrounding areas of major cities.

Investment in land:  Big ticket and illiquid investment

Even the most affordable residential homes are often more expensive than a plot of land. Most potential investors will use a home loan to finance the purchase. Because they have a low entry price, even young investors can buy them without financial obstacles. Many investors choose to buy land early in their lives and then build a home later when they have more money. One of the biggest benefits of investing in land or a villa plot is that it is a finite resource. Tax is a recurring expense that property owners have to account for, regardless of whether they own a residential property or plot of land. In the case of land, the property tax is substantially lower than it is for a house. So from an investment point of view, you’ll not just be saving money when you are making the initial purchase for a plot of land, but also in the long run while paying taxes. Investing in real estate is undoubtedly one of the most lucrative forms of investment. Although investing in residential apartments has become the norm, it is not the only option available for investment. The demand for land is increasing by the day and more people are looking to invest in a land plot.

Apart from mowing the area or fencing and hiring a guard for surveillance, plots do not involve additional maintenance. If you are planning to add an asset, then consider buying an affordable plot in Ghaziabad which will offer you the space you need to create your dream home. Also, the capital gains arising from real estate is taxed at 20% with indexation or 10% without indexation. The capital gains from the selling of balanced fund units attract a tax of 10% on the gains above Ra. If you compare both the tables above, you can observe that investing the amount in a SIP of a balanced mutual fund yields better returns. When you buy a plot through a loan, most financial institutions sanction loans up to 70% of the plot value.

By creating wealth in the long term, it can also secure your future. As owning a plot continues to be the most pivotal financial goal for Indians, let us take a deeper look into the advantages and disadvantages of buying a plot. The information sources used here include onsite interviews, marketing material and other information sources on the internet. These data have not yet been verified against authentic documents, and are only indicative of the actual situation of this property, project or land holding, and their ownership.

What Are The Expenses That Incur Along With Selling A Property?

The handover can take a year or even longer, depending upon the project’s building stage. But with a parcel of land, there is almost no probability of a delay. Therefore, investors can almost immediately take control of their new assets.

Owning Land in Your Portfolio – Retirement Daily on TheStreet … – TheStreet

Owning Land in Your Portfolio – Retirement Daily on TheStreet ….

Posted: Thu, 16 Jun 2022 07:00:00 GMT [source]

However, before you take the plunge, it is crucial to understand the pros and cons of investing in plots. 99acres evaluates the asset class and enlists its key advantages and disadvantages to help you make an informed decision. The land is always treated as a prized asset as it is limited in supply. Many people invest in real estate through different means such as plots, individual houses, commercial complexes, apartments, etc., to achieve their financial goals. In addition to conventional farming methods, consumers also favour making a farmhouse investment. A farmhouse is a residential building tucked away among thriving agricultural area.

What is Land Development?

If you compare investing in a residential property with a plot of land, you will notice that the former has a higher price as compared to the latter. Empty land is the more cost-effective option here, which means that you can purchase a plot at low costs and then either build something there or let it appreciate over time. To make life a little easier for such individuals, Hosachiguru offers a unique long term wealth creation opportunity for people to own farmland and take up agriculture.

Even the most hands-off investor can purchase land without having to worry about regular upkeep. When you compare the rates of a plot to the rates of ready-to-move-in apartments, the land is always the more affordable option. Also, once you own a plot, you have the flexibility to either build a house for yourself, rent it out, or even sell the land to a potential buyer at a higher rate in the future. Developers of gated communities also offer a lot of amenities such as parks, club houses, convenience stores, play areas, swimming pools and so on. Apart from the flexibility of building spacious homes at a later stage or retaining them as plots.

  • The buyer can make only a few modifications to the property, and it is impossible to change the layout of their home.
  • Real estate is a highly illiquid asset class, and it may not always be possible to find a buyer at the need of the hour.
  • The demand for good apartments in the city has increased to a great extent.

A readymade house is a good option for people who immediately want to move in and settle their household. However, in already built homes, there is almost no scope for advancement. So, if you feel that you might have to add on to the features of your house in later future, then a residential plot will be a better idea.

Benefits of Buying Farmland for Investment

You don’t have to worry about or struggle with major costly repairs or maintenance work because it is just a piece of land, after all. You might have to mow the lawn every once in a while, but that’s about it. Hosachiguruis a leader in timberland in India and has cultivated over 500+ acres of timber lands over the last 5 years. Timber is a safe option as it is pest resistant and demands very little water compared to other crops.

  • The number of beneficiaries disbursed under PM Kisan for any instalment period has now surpassed 10 crore farmers, according to a statement from the Ministry of Agriculture.
  • We are in process of receiving the relevant information from respective Developers / Owners etc.
  • Without any perplexity, buying a property takes a lot of time because of its finishing process.
  • For instance, the conveyance of mineral rights may grant an unrelated party the authorisation to extract and sell minerals for financial gain.

In addition, compared to a solitary site, gated communities provide better amenities. Furthermore, while building a house on your own takes a lot of time and effort, it might save you money as compared to purchasing a plotted development from a builder. Whether you want to live in your newly purchased property or not, you will have to pay for maintenance. Some of these payments are fixed, such as maintenance fees charged by housing societies and some are incidental like plumbing issues, electrical problems, renovations, and so forth. But with the parcel of land, there is essentially no upkeep cost. The maximum one might have to shell out would be restricted to pay for fencing and mowing the area, hence plots are way more affordable to maintain when compared to apartments.

Owners can almost immediately take control of their new assets because land does not require any building. A plot of land, on the other hand, is similar to a blank canvas where you can build your dream home from scratch where your ideas and inputs can play a pivotal role. One of the biggest advantages of investing in land is that it is a finite resource. New residential high-rises will continue to be built, but there is only a limited amount of land available for ownership. Because of this, owners can be certain that their investment will constantly be in demand as a result of which, its price will continue to appreciate.


To counter this issue, Hosachiguru owns and works on lands in Anantapur district of Andhra Pradesh, where anyone can buy agricultural land irrespective of whether or not they are farmers. Delay in possession of the property has always been a concern for many. In the case of buying a plot, the investor gets the advantage of owning the land without any hassles as compare to flats/apartments. If you have a piece of land at a perfect location, you can set up your business there buy building a shop, office or industrial unit as per your business requirement. If your vacant land is near a tourist area then you can construct rent houses there which will earn for you! Or you can also construct a marriage or party hall which can be given on rent daily basis or on hourly basis.

Not only does it tighten the noose on realtors to adhere to the changed norms but also brings in increased transparency and accountability. For instance, for those who invest in residential plots, the requirement is that the land plot must be RERA registered. When it comes to buying a residential property, many people find it difficult to decide whether to opt for a ready-to-move home or buy a plot and then construct their dream home.

asset class

Its popularity has not receded, despite the availability of various benefits of owning land products such as mutual funds and equity shares. However, you should be aware of all the pros and cons before you go for investment in land. A. Given that land does not involve construction costs, its purchase price is much lower than a developed property. Also, it’s a scarce resource; hence, the scope of appreciation is high. The Union and State governments are undertaking a massive exercise to digitise old maps and land records.

After you invest in a very plot you don’t should look forward to finishing and ownership, they’re sometimes prepared for possession. Conjointly after you build your home on your own, you’re not sure by any timeline. You sure couldn’t want anything more than to finish the improvement in time, anyway you’re not liable to anybody. Excepting a case where you want to build your own home, investing in a plot by availing a loan is not a prudent investment decision. It is better to invest your savings in a financial asset regularly. Let us assume that she invests in the plot and it would yield a return of 10% pa over a period of 10 years.

Land provides substantially better profits in a shorter period when combined with the cheap expenditure required to obtain it. Even the most affordable residential homes are often far more expensive than a parcel of land. As a result, the majority of potential investors fund their purchases with a home loan.