One has surely heard the saying “Landlords grow rich in their sleep”. There is no greater saying to emphasise the need of having an investment in real estate be it an apartment or residential plots in India. It is widely believed that an investment in land has no recessions and downturns. If one is not going to put his money in land then where else is he going to invest? There is a famous saying by Anthony Trollope “It is a comfortable feeling to know that you can stand on your own ground. Land is about the only thing that can’t fly away”.
What is meant by a non agricultural plot of land?
In non agricultural land, development is carried out on the land which makes it unfit for cultivation. This land is converted into residential land in the revenue records of the local development authority. One can purchase a plot which is generally ready for possession. This is unlike an apartment where one has to wait until the construction is complete. The value of a plot is all about location. A plot in a well connected location carries a high price tag and can be easily developed and sold for a decent profit in a time period as less as a couple of years. There is no construction cost and time involved and one can easily exit and make a profit. Land plots are less easy to come by than apartments. An apartment might have to be constructed which involves the cost of building the structure. An apartment might age over time whereas the plot of land faces no such problem.
How can one make a tidy sum by purchasing residential plots?
One of the most common techniques followed is purchasing a piece of land on the outskirts of a city or in the vicinity of a future upcoming business district. The plot of land can be obtained at relatively cheaper rates. This land can be held for a period of 5-10 years and sold for massive profits. A plot of land in a decent location can appreciate over 800% in value over a couple of years. Of course luck does play a role. Another common approach one can follow is of purchasing plots of land as a group. This reduces the chances of one being cheated or shortchanged when purchasing a plot of land. If the plot is close to a road, major highway or an upcoming business district vast profits can be realised. Plots can also be used for generating extra income or an alternative source of income. They can even be given as parking space or rented out if necessary. However it is very necessary not to fall for misleading advertisements or promotions. Many buyers purchase land plots from small developers at low prices with the hope of massive appreciation in prices. When things go wrong these developers disappear. It is always good to purchase a plot of land from a well established and a reputed developer as the chances of being cheated are less. Another common trick used by developers is the promise of an upcoming infrastructure project, highway or a mall near the plot of land where one can make vast profits in a relatively short span of time. These constructions may be hampered by regulations, lack of funds or any other reason and may never take off. One needs to be judicious while purchasing that plot of land.
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