What Are The Benefits of Purchasing a Plot as an Investment in Real Estate?

"Buy land, they're not making it anymore." - Mark Twain

This is one of the most popular quotes used by real estate sellers, such as property developers, real estate developers, etc.

In actuality, this idiom is used mostly by real estate developers who are planning landed projects and attempting to sell land and plots. Obviously, this adagae fits wonderfully there.

In all honesty, this remark has a great deal of truth as well. If you reside in one of India's cities and look around, you can physically sense the land shortage. Homes are priced per square foot, and it is very hard to locate land in cities nowadays. Probably a few decades ago, the area where you now reside offered a variety of land alternatives, and those that invested back then are the rich families of today.

Invest in PLOTS - make a prudent decision combined with due diligence.

(We are discussing the city of Mumbai and its periphery in this article regarding investment in plots BUT the same would apply for any other city/town/location)

The choice to purchase a plot is significant and should not be rushed. Therefore, after you have a shortlist of the land you want to purchase, you must do your due research to enjoy its long-term rewards.

A majority of individuals seek to buy real estate due to its potential for income production. In a metropolis such as Mumbai, however, one is compelled to investigate the city's periphery districts, where enormous expanses of land are accessible.

Pratish Kulan, a real estate agent from Karjat, Maharashtra, opines that land investments in the outskirts of Mumbai have the potential to create large profits. This is obvious by the increasing amount of inquiries from prospective purchasers seeking to invest in house plots.

In addition, investors seeking industrial and commercial property surrounding Mumbai, Pune, and even Bangalore are increasing in numbers.

Evident benefits of purchasing a plot

Land may be an excellent investment with lucrative rewards.

The profits on an investment in a plot may be much greater than those of typical real estate investments.

You can buy a plot or land for a much smaller investment as compared to buying homes in a city (so your entry level is very low).

You can construct your dream custom-designed home on your own plot.

The UPSIDE to your investment could last for decades.

However, like with other parts of life, one must evaluate all factors before making judgements.Before investing in a plot, there are a number of key factors to consider.

The significance of infrastructure and connectivity while investing in a plot is as follows:

A good location for purchasing a plot is one that is near to significant employment-rich commercial areas.

Locations in close proximity to forthcoming infrastructure developments that promise enhanced connectivity may reduce everyday commuting times. Even developers seeking to begin their planned development projects take into account the area's accessibility and impending infrastructure expansions, as well as the proximity to major national routes and monuments.

Real estate developers are interested in the forthcoming infrastructure in and around Virar, Vasai, Palghar, Badlapur, Neral, and Karjat, according to Rajesh Dhan, a Neral-based real estate consultant.

Since a buyer, you should seek for plots in such areas that will have a significant influence on your real estate investment, as land investment becomes profitable when the surrounding infrastructure and connectivity of the region grows holistically in that region.

Work with real estate professionals:

To prevent future complications pertaining to the property, purchasers must review the transaction's legal documentation. As with any real estate transactions, land purchasing entails certain hazards, some of which are unique to the acquisition of plots and lands.

Before purchasing a piece of land, the vast majority of real estate specialists would urge prospective buyers to thoroughly review all related paperwork.

Ideally, you should invest in a decent gated community with planned projects that is being built by a reputable real estate developer with a solid reputation. You should investigate the developer's track record. Check for RERA permissions and if the plot you're purchasing qualifies for a bank loan. These are fundamental checks that you can do on your own. Regarding the documentation, the title report, the 7/12 extract or the property card or the 1/14 extract, as well as any litigations, you should seek the advice of a competent real estate consultant and a real estate attorney and get a comprehensive report.

Be diligent and logical:

A further advantage of using competent specialists is that purchasers may uncover any flaws and concerns with the property. This involves measuring the land for sale, determining whether it is unencumbered, preparing for necessary documents, etc.

Additionally, as a buyer, one must determine if the property is agricultural or non-agricultural.

Due to the requirements and constraints governing who may acquire agricultural property, it is crucial for the buyer to be aware of the land type before completing a purchase. Prior to making a purchase, a feasibility analysis is recommended if development is the anticipated objective.

BRANDED LAND, ANYONE?

As it has happened to real estate in India in general where there are many branded property developments, branded homes that you caninvest in - there are now branded lands or branded plots in India that you can invest in.

What it means is that your headaches with regards to due diligence and all other major aspects are all taken care of and you are dealing with a real estate BRAND that you can count on. This makes investing in land as well as investing in plots a much simpler affair.