March 10, 2017: Building a home from brick to brick and having the sovereign choice of the floor plan is a dream that many of us harbor but only a few accomplish.
Apart from constructing a house, a plot of land is a great investment. There are many who like to invest in land instead of a flat and argue that buying a flat is high maintenance and does not give good returns on investments when compared to a plot for sale in Chennai.
It is generally the second home buyer or investor who invests in land or a plot for sale in Chennai or any other flourishing city. Investment in both land and apartment has its own merits and demerits.
Follow NewsGram on Facebook
The few important merits of investing in a plot of land are:
- There is a lot of freedom to design and shape a plot, which is not possible in an apartment.
- With space availability vanishing quickly in the city, the rate of land is expected to appreciate very quickly.
- Flexibility to build as per the city’s future requirement helps the cost of land and property to appreciate very fast.
- The land is always in demand. The value normally appreciates due to zero depreciation of land.
- There is little or no competition for raw land, so being the only prospective purchaser is a huge negotiating advantage.
But, there are some demerits to investing in a plot.
- Land generates very low income if rented sometimes. It is difficult to reoccupy a land if tenant pushes it into litigation.
- Banks do not provide finance for buying a land/plot.
- It is essential to make legal checks on ownership history.
The key to a good investment is research and complete knowledge about the investment. Some of the things to keep in mind before buying a property are:
- Clear land title with no outstanding loans, taxes or mortgages must also be investigated. A buyer must ensure that the land parcel is not reserved for any government projects and does not belong to the agricultural category.
- Investigation on infrastructural development around the area should be made. Inquire availability of proper roads and Infrastructure in the area, also amenities within the projects and other developments coming up around the property needs to be researched.
- Landlocked properties or oddly shaped properties should be avoided. Required building setbacks could make a narrow plot worthless.
In the recent times, the southern state of Chennai has emerged as one of the top destinations for investing in land/ plot. Chennai is more appealing than other metros of the country, as it is a rapidly expanding manufacturing hub of India.
The state houses manufacturing units of top carmakers, as well as, other industries like IT industries, Telecom, etc. All these establishments are creating a big investment opportunity in the city with high growth and shooting prices.
The ideal destinations for investment in the city include:
- Gandhi Salai and Oragadam: They are the hubs of activities for the IT and manufacturing sectors. While Rajiv Gandhi Salai is an attractive choice due to its proximity to the various IT Parks and IT-SEZs, plots near Oragadam are ideal for investment, as it is an automobile hub. These locations are well connected by road and rail, and the presence of various multinational companies has triggered the real estate growth.
- Vandalur-Kelambakkam Road is one of the future growth corridors of the city, as it connects two important arterial roads Grand Southern Trunk Road (GST) with Rajiv Gandhi Salai. Easy connectivity and presence of many educational institutions in the vicinity have positively impacted the real estate sector in this area.
The land prices in these areas range between INR 500-2,500 per sq ft. The buyers have a variety of options to choose what can fit their budget.
In a city whose demographic is changing constantly with apartments becoming the norm rather than the exception, a plot as a mode of investment is becoming highly lucrative. The severe space crunch in the city has resulted in land prices going through the roof, sending plot developers and buyers scout for land on the outskirts. It has resulted in a spurt of real estate development in these localities.