Land is an asset that provides guaranteed returns when one invests in it. Investing in a plot of land today assures many benefits tomorrow. This article talks about four reasons why buying plots of land is beneficial.
Land is a tangible asset and shows appreciation in value over time. While investment in other types of assets is preferred by many, investment in land is practiced on a very large scale owing to the advantages a plot of land offers. With India’s increasing population and the consequent high demand for land, investing in a plot of land today will produce great benefits tomorrow.
These benefits are not only available in the short run but will also be felt in the years to come. Hence, whether one invests in residential plots in Bangalore for sale or commercial plots in Chennai, the advantages of investing in land will be many and can be availed by the future generations of the buyer as well.
Let’s take a look at why investment in plots of land is so beneficial.
A lot of profit: The demand for land is high but the supply is low. Thus, if one invests in a plot of land he will be assured of high profits in future. In most cases, land undergoes appreciation in worth over time. Hence, the value of a plot purchased in the present day will go up over the years, enabling the buyer to get a resale value much higher than the cost of the plot. What’s more, investing in land is an easier process than investing in shares or stocks, thus making investment in land a good decision.
Rental income: Usually, a plot of land cannot yield rental income. But if the position of the land is appropriate, it can be leased out for tenant farming activities or as a parking area. These leases can generate high income and assure the buyer of the land of a steady flow of income every month. Thus, a plot of land does not only undergo high appreciation but also fetches good rental income.
Low property tax: One usually needs to pay low property taxes on plots of land as compared to a house. While there are many types and amounts of taxes payable depending on the type of house one buys, an owner needs to pay much lower taxes for a vacant plot of land. This is another financial advantage of investing in a plot of land.
No maintenance required: Certain maintenance costs are involved when one lives in a house or runs a business from a commercial property. These costs, such as maintenance charges to the managing committee of the community, are required to be paid even if a house or office is left empty and not used. However, this is not an issue with a vacant piece of land. A plot of land does not need to be maintained. It does not cause any expenses after the primary purchase until the buyer decides to have a building on it.
If you want to invest in an asset that will provide guaranteed returns and high income, a plot of land is what you must invest in. You may look for good plots in Bangalore for sale or those in Delhi or any other place of your choice but it is important to make sure you get in touch with a reputed realtor for the buy.