A Veteran Real Estate Investor reveals his biggest secret in buying plots
If you’re planning to invest in plots for a long term return, then this article will be an eye-opener. We are not talking about the basics here about how to choose the right piece of land and what are the legal procedures involved. We are trying to create awareness among property buyers who are looking to buy plots for long time investment. There are two types of investment options for plots:
- Buying from a Famous Real Estate Layouts
- Buying a resale land/Plot from Individual Seller
Both of them have their own pros and cons, but there is one important thing which you’re not aware off.
There are a lot of real estate companies who make layout in a remote areas and promote them heavily with lot of features like roads, fencing, security, landscaping, etc. These kinds of layouts are promoted heavily and sometimes endorsed by celebrities too.
These companies arrange transportation from your place to the site and back home. In some cases they provide you with free food too. Most of us tend to invest in these plots as they are well maintained and promote by well known people. Most of the times, they provide you with a handsome discount if you buy more than one plot. All these facilities and friendly sales people make this property investment look extremely attractive. Most people tend to invest in them along with their friends and relatives too.
Once a person decides to invest in a land in a particular location, this is what they do to finalize their decision. They visit 3-4 different layouts in the same location by various companies and compare the pricing and facilities. Generally there won’t be a big difference in pricing and so one would settle with anyone of them.
What they fail to do is, compare it with an individual person who owns a plot of land in that area.
“If the cost of branded plots is Rs.1000 per sq ft, then the cost of a RESALE plot in the same area will be around Rs.500-600!!!”
This is the harsh reality which people don’t try to understand and blindly invest in branded good looking plots. When it comes to investment in land, it’s always wise to opt for resale plots compared to new plots. You get the best price for resale plots. Yes they don’t come with the brand value or facilities. How much do you think will cost you to lay a fence? This price is much less compared to the premium you’re paying to the real estate promoter.
Why pay 50% extra when you can get the same piece of land with same approval like CMDA,DTCP,etc for less? That’s not all, a resale plot which has approval from CMDA, DTCP are eligible for bank loans as well. The biggest reason which holds back people from buying individuals is fear: The fear of legal procedures, fear of trust, etc. This is why people settle for new layouts even though come at a huge premium. When you visit a layout it will look great, but don’t get carried away. TO get the real picture, you need to visit layouts which were sold 3-5 years back in the same locality. You will be shocked to find the poor state they are in. All the amenities would have disappeared and would look really bad.
Advice from Direct Owners:
Once you have finalized the location for your land investment, visit 3-4 branded new layouts and collect their pricing and facilities. Then try to find out small piece of lands in that area and enquire if any of them are for sale. If so enquire the pricing and you’ll be surprised. Take an educated decision so that your hard-earned money is not wasted. Do you want to know more about this topic or help, just contact our Founder R.Sankarganesh +91-9841599588 , firstname.lastname@example.org