Purchasing a plot of land is a major investment! After all, you’ve been planning this moment for a long time and have been patiently waiting for it. It’s natural to be thrilled now. Before you jump the gun, consider whether your investment strategy is in line with your objectives and financial resources.
If you’re considering buying land instead of property, you’re getting into a completely different situation. Let’s attempt to understand that through this list of pros and cons:
5 Pros of Investing in Plots in Bangalore You Should Know
Limited Supply and High Demand
We only have a finite amount of land available to us. However, since there’s a steady rise in population, the land’s considered a preferred investment that enjoys continuous demand.
Even the COVID-19 pandemic couldn’t shake the demand for residential plots in Bangalore. Unlike stocks or gold, they’re much less volatile and guarantee you good long-term returns most of the time.
Little to No Maintenance Cost
When compared to apartments or other properties for sale in Bangalore, you’d get higher returns on investment through plots. From the long-term perspective, it’s better to invest in land because you don’t have to pay various maintenance costs to keep an old apartment functional.
Plus, it could get more difficult to rent out apartments or sell them off if they’re too old. You’ll be competing with newer properties that might seem more desirable than your apartment. With plots, that’s not the case.
Immediate Possession Upon Purchase
While investing in properties, you can either invest in ready-made ones or ‘ready to construct’ properties. If you’re investing in ‘ready to construct’ properties, you’d get possession a few years later than the time of investment.
In some cases, delayed construction, legal complications, and other factors might disturb this timeline. So, till the time you receive possession, you’re taking a huge risk.
Let’s contrast this situation with purchasing land. In most cases, you’ll get the possession immediately and own property by taking the least risk.
Flexibility and Customization
When you’re buying plots, what you’re investing in is an open canvas. Now, it’s up to you to paint the picture you want on this canvas. You can build your dream house the way you want to and not fit your needs to an architect’s vision.
Let’s put things in perspective:
Through a plot investment, you can build a house based on what you value. So, if you’re environmentally conscious and quality-driven, your house can reflect that. Not just that, with custom design, every corner of your new home gets used to.
Buy Now, Build Later
Property investment is expensive. Buying a house or an office is just the start of your expenses. If you have to truly make it usable, you’ll need to invest in interiors, plumbing, and other utilities.
Now, here’s what ends up happening:
You’re so overwhelmed with your monthly loan installments that you may not be able to afford good interiors. So, you end up going for cheaper alternatives that might not last. That way, you’ll spend a lot in the long term.
Let’s look at the flip side:
By investing in plots, you give yourself enough time to financially recover and build a quality home when you can afford it.
3 Cons of Investing in Plots in Bangalore Every Prospect Should Know
Big-Ticket Investment on an Illiquid Asset
Like any property investment, purchasing a plot is quite costly for most people. Plus, it’s not an asset that gets you passive income regularly unless you’ve constructed and rented it out.
Though it’s a great asset to hold for long-term capital gains, it’s not for people who want quick, hassle-free, and regular returns. So, if that’s something you want, investing in plots might not be for you.
Land Encroachment Issues
If you’re a city dweller, you might invest in a plot that’s far from your current residence. Now, since it’s not near your place, you won’t visit it as often or know what’s happening there. Unless your land is properly fenced, it’s bound to attract trespassers.
So, it might not be a desirable option for you if you’d not want to deal with such issues or check up on your investment regularly.
Lack of Civic Amenities
When you buy an apartment, the builder ensures you have access to civic amenities like water supply, electricity supply, lift, and others. That way, you don’t deal with different government bodies or fill forms to get work done.
Now, investing in plots doesn’t give you that luxury. After getting the plot, building a house can be a hassle if you’re not prepared to get the civic amenities yourself.
The good news is that with various plotted development projects you’ll get the convenience of an apartment and the flexibility of plots. So, that’s an excellent option you can explore.
Final Thoughts
Buying land can be quite profitable in the long term. However, it also comes with a few downsides. So, consider every aspect of plot ownership and invest with caution.
Do get in touch with our experts at Address Maker to clarify any doubts or look for state-of-the-art residential plots in Bangalore.