Purchasing a piece of land has always been one of the major investments in the market. In India, investments in plots have always been considered a great idea for wealth generation. Although there are several technological advancements and tons of options for investments, people still consider investments in plots to be a reliable option.
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.
Advantages of buying a plot:
Cheaper compared to other investment options in the real estate market:
While it is not an easy task to buy an individual house or apartment in the heart of the city, you can consider investing in plots as it comes at a relatively cheaper cost. You can also avoid the cost of construction and government imposed taxes to save more.
You can get more from it:
Who said an empty piece of land cannot be used for anything other than constructing houses? An empty plot can be used in a number of ways. As you are putting a huge amount of money into buying it, you might as well use it as an event ground, poultry farm, or rent it for sports. You can also consider a long-term lease with other people after buying land in Mannivakkam.
You will get higher returns on your investment:
In order to get higher returns on your investment, you need to choose the ideal locality. The rate appreciation varies with the locality and depends on numerous factors. However, plots will have a higher rate of appreciation compared to other options in the real estate sectors as the construction quality deteriorates over time. Also, the infrastructure development plans initiated by the local governing body can also have an impact on the overall price.
Lesser maintenance:
When you buy a low budget plot in Mannivakkam, it hardly needs any maintenance. Some people prefer to put a fence around it to avoid other people entering. On the other hand, individual houses and apartments require regular maintenance if they remain unused for a longer period of time.
Friendly norms:
The Real estate regulatory Act is a boon to the real estate market. It reduced the instances of frauds involved with plots to a great extent in India. When you buy plots that are registered under this act, it will ensure that your plot will be free from encroachment in the future.
You can get it faster:
The demand for good apartments in the city has increased to a great extent. In some cases, people even wait for several months to get an apartment. Whereas in the case of plots, you need not have to wait longer. If you are buying a plot inside a township, you will get possession of the land quicker when compared to an apartment.
Disadvantages of buying a plot:
Most cities are running out of plots:
Most cities in India are running out of plots now! Although this might be hard to believe, it is the truth. Several factors contribute to this decrease which includes the increase in population, urbanization, etc. In major cities like Chennai, finding a piece of land in the heart of the city is next to impossible. Moreover, the availability of plots is increasing in the outskirts of the city, but we can expect the same pattern in a few years.
Risks of encroachment in some cases:
Although we have proper laws to prevent encroachment, such activities still prevail in some areas. Several cases of land confiscation are being reported every year in India. This shows the risks involved with investing in plots. However, you can reduce the risk of encroachment drastically by taking surveillance measures.
Illiquid asset:
Unlike stocks, bonds, and other investment options in the market, you cannot sell plots on an immediate basis. It will take time for you to find a well paying buyer to match the Mannivakkam land price. You will also have to deal with several legal steps before finalizing the registration process.
Complications in finance:
Investments in the land will demand high capital requirements. Typically, plots are considered a risky asset by most banks. They offer a wide range of home loan options for apartments and individual houses. In that case, you will have to put in more effort or think of an alternate way.
Infrastructure development plans:
Although this might be a great selling point in real estate, you need to research the market and check the authenticity of the information provided on the infrastructure development plans. Check for the potential of the neighborhood and its growth aspects to get a clear picture of the future.
Conclusion:
If you are merely looking for plots in Chennai to invest your money, check out the land in Mannivakkam. The locality can be easily reached by multiple transportation options. It also has the potential to become one of the major hubs in the city. Buying a plot is a great way to grow your wealth and so study the market thoroughly to reap the maximum benefits.
