“Buy Land, they don’t make it any more.” – Mark Twain
1. Investment in Land is Low on Risk and High on Returns.
2. Land appreciates faster in bull market and holds its value in bear market.
3. Land is the ground on which the foundation of any Industry, Infrastructure or
Services (IT and ITES) is laid.
4. Ever growing population and high savings in India.
5. Social, emotional and Economical Values held with the Land also favors investment in Land.
Land Vs Constructed Property
1. Unlike constructed property that depreciates with time, Land appreciates.
2. Land is an asset from day one while constructed property takes much longer time to mature.
3. Land offers flexible investment options in terms of size, dimension and value.
4. Land can be put to multiple uses during the period of ownership.
It can be developed
for warehousing, commercial and residential use.
5. There is no incremental maintenance of Land like in the case of constructed property.
Metros Vs Tier II, III & IV cities.
For property buyers, there’s a standard dilemma-whether to invest in Land in
a metro or in a tier II, III & IV city. There are three basic pre-requisites or parameters:
1. Entry cost: It is very high in metros as compared to Tier II or III cities.
2. Finding investable / affordable & and prime land in tier II, III & IV cities is easier as compared to metros.
3. It is easier to enter in to a land transaction and equally easy to dispose off
the plot as the market in tier-II, III & IV city is more vibrant.
4. Generally Tier II, III & IV cities are safer on investment and higher on returns as compared to metros.
Buy Now or Wait.
The industry is divided over the timing of investment in of the emerging trends.
Experts are of the opinion that though land prices are on downward spiral, the deceleration
is taking place at much slower pace than built-up property. Also in view of the
upcoming infrastructures projects like new arterial roads, public transport on the outskirts,
the prices of land are distained (will definitely shows kind of hope while “are destined” shows assurance)
go up in the next five years. Experts also comment that waiting endlessly for the market to be bottomed
out is not a good idea – You May Miss The Bus. It can be summed as, it’s better to buy land now at a
bargain price especially if you can even make part payment.