Why is it beneficial to buy a plot in India?

Home buying insights | Apr 22, 2021 | 10 min read

The recent pandemic has changed the preferences of homebuyers majorly. With the prevalence of a work-from-home situation, now young professionals are exploring locations outside of the crowded cities, to experience living in standalone houses as opposed to cramped up apartments. It’s no wonder that the demand for plots and plotted developments in cities like Bengaluru, Hyderabad, Chennai, Pune and Gurugram, has seen a momentous rise in recent times as per an Anarock report.

Further, investing in land is seen as lucrative in India because it yields high returns at a relatively lower cost of investment. Also, for homeowners, buying a standalone plot means they now have the flexibility of building a house consistent with their tastes and budget constraints. However, before investing in a plot of land, several important aspects like cost of building, appreciation, financial assistance and income have to be assessed. We are here to help you with that, read to learn more.

Why invest in a plot of land over a ready-made home?

  • Low investment

The cost of a vacant plot of land is comparatively lower as compared to residential apartments due to the absence of construction costs. Making buying a plot of land a cheap and budget-friendly capital investment for young professionals who are looking for affordable yet spacious housing options. 

  • High returns

Land or plots have been recorded to show a higher rate of return. Moreover, in case you have bought a plot of land in an area with good infrastructure or development scope, its price is sure to appreciate by leaps and bounds shortly. Considering these guaranteed high returns at relatively less costs, it is no wonder that buying a plot is seen as an excellent cost effective investment in India.

  • High flexibility

Buying a plot of land gives you the flexibility to design a house as per your tastes and space requirements. Also, even if you decide at a later time that you do not want to build a house on the plot, you can always resell it. Both ways it is a win-win scenario for you because the returns on land investment in India tend to be alarmingly high.

  • Freedom of customization

A home reflects your personality, your lifestyle and everything that makes you unique, which is why only you have the right to decide how it will be built. Buying a plot of land ensures you get to exercise this right in its true sense, where you are not just investing in a plot but a blank canvas that you can paint your dreams on. Moreover, keeping in mind that your preferences keep changing with time, building a home on your plot, gives you the sovereignty to make any aesthetic changes to your home, as and when you please. 

  • It appreciates in every aspect

An apartment’s value increases consistently over time. However, the owner of a plot can get considerable returns on his investment if they plan wisely by constructing multiple floors and renting them. Moreover, a limited supply of land ensures higher competition in the market, leading to increased price points. Purchasing plots purely for investment purposes can yield healthy profits, too.

To buy a plot requires a down payment. HomeCapital provides down payment assistance for plots. Such assistance is highly beneficial for young buyers who usually do not have enough savings to pay the entire down payment upfront. The amount borrowed from us can be repaid in 12 easy EMIs.

Important factors to keep in mind before signing the plot ownership deed:

  • Verify the seller’s claim to the plot through original documents and deeds.
  • Rectify the title deed properly, to ensure that the transfer and legal ownership of the land by the seller is undisputed.
  • Collect any previous tax receipts generated from the seller for further verification.

Final thoughts on buying plots in India 

If you are planning to buy a plot, evaluate the property in terms of the future growth prospects, that is if any infrastructure project is coming in the nearby location and how good is the connectivity. Better connectivity and upcoming infrastructure projects increase the chances of value appreciation of plots.

Also, keep in mind in the case of agricultural lands, only a small percentage of the property can be used for house construction. In some states, you need to qualify as an agriculturist to buy such land.

Further, for lower risk of dispute on the title, better security and amenities, one can also look at gated plots offered by reputed developers. It would be remiss to note that, gated developments offer better amenities compared to standalone plots. Also, building a house on your own requires a fair amount of time and effort so you can alternatively consider buying a plotted development from a reputed developer.

Related posts

Quick links

HomeCapital podcast

Listen to our podcast

Offerings

Find projects based on your interests

Check eligibility

Calculate down payment assistance amount

Follow us

https://i1.wp.com/blog.homecapital.in/wp-content/uploads/2021/04/Why-is-it-beneficial-to-buy-a-plot-in-India_-1200-_-675.png
WebPageWhy is it beneficial to buy a plot in India?
WebSiteWhy is it beneficial to buy a plot in India?
OrganizationHomeCapitalhttps://cdn.homecapital.in/logo.pngHomeCapital is India's first Home Down Payment Assistance Program, revolutionizing the home ownership and changing lives of millions of home buyers.
en-US
ImageObject1200675Why is it beneficial to buy a plot in India?
2021-04-22T14:08:50
en-US
Read Actoin
EntryPointhttps://homecapital.in/blog/why-is-it-beneficial-to-buy-a-plot-in-india
Why is it beneficial to buy a plot in India?Home buying insights2021-04-22T14:08:50
WebPage
WebsiteWhy is it beneficial to buy a plot in India?
OrganizationHomeCapitalhttps://cdn.homecapital.in/logo.pngHomeCapital is India's first Home Down Payment Assistance Program, revolutionizing the home ownership and changing lives of millions of home buyers.
ImageObject1200675Why is it beneficial to buy a plot in India?
2021-04-22T14:08:50en-US
ReadAction
EntryPointhttps://homecapital.in/blog/why-is-it-beneficial-to-buy-a-plot-in-india
OrganizationHomeCapitalhttps://cdn.homecapital.in/logo.pngHomeCapital is India's first Home Down Payment Assistance Program, revolutionizing the home ownership and changing lives of millions of home buyers.
HomeCapital,down payment,real estate Worken-US

Data Security

We use bank-level security for your protection.

Your information is encrypted with an AES 256 bit symmetric key.
Your connection to HomeCapital is always encrypted over HTTPS with Transport Layer Security (TLS). HomeCapital applications and data are physically located in multiple secure data centers. We utilize Amazon Web Services for our hosting which is compliant with numerous security certifications.

Disclaimer

The HomeCapital "Portal" and all its contents are only for the purpose of providing information regarding the HomeCapital Down Payment Assistance Program and should not be construed as binding. By using this website, you accept our Terms of Use and Privacy Policy. We are not a lending institution. All loans are made by our financial institution partners. The real estate properties listed on the Portal are not an advertisement or a solicitation and the customer shall independently review and verify the credentials of the project and/or the developer.

HCPL and it's partners reserve the right to reject any application at any time in accordance to its policies. To qualify, a borrower must be a Indian citizen and meet our financial partners underwriting requirements. To check for an applicant’s eligibility, our lending partner will request your full credit report from one or more credit bureaus. Not all applicants receive the down payment assistance. To qualify for the program, you must have a responsible financial history and meet other conditions. Assistance limits displayed are indicative, actual limits will depend on number of factors. If approved, your program assistance tenure will depend on a variety of factors, including down payment assistance amount, repayment capacity, a responsible financial history, years of experience, income, home-loan to value ratio and other factors.

All Rights Reserved. © Copyright 2020 Homeville Consulting Private Limited.

Jenkins