What are plots?
Residential plots are plots of land which you can use to build your house on. They may be available for sale in various dimensions and sizes depending on the location and the specifications of the developer.
There was a time when plots were considered the best investment option by most people. However, with changing times, things have changed and now there are many other investment options available in the market today. This has created a lot of uncertainty in the minds of investors as to whether they should still invest in residential plots or not.
The first thing that you need to know before investing in any property is whether the investment would be profitable or not. In this context, you need to know that a plot is not an alternative to any other property and hence, it is a stand-alone option. Moreover, LDA approved plots in Lucknow are free from many complications such as rent, maintenance and management expenses. However, they can be very risky as compared to apartments and houses. With plots, there are always chances of frauds and scams. Hence, it becomes very important to choose your agent wisely and make sure that you do a detailed market research before investing in any plot.
Let’s take a closer look at the pros of investing in plots of land.
No Maintenance Costs
When you purchase a plot of land, your primary cost is the purchase price and any applicable taxes. Beyond that, there are no maintenance costs. The value of the land will appreciate or depreciate based on market conditions, but there are not ongoing costs for repairs or improvements. This means you do not have to worry about budgeting for maintenance expenses, such as roof repair or tree removal.
Liquid Asset
Land is considered a liquid asset because it can be sold quickly if necessary. This is particularly true if you sell to a developer who wants to build on the land. If you are strapped for cash and need funds fast, selling your land is one way to bring in a large sum of money quickly. However, some investors prefer to hold onto their investment properties until the market improves and they can get more for their plots than they could right now.
Land Appreciation
In most cases, the value of land appreciates over time. Single family homes typically lose value when they age, but this is not the case with land. Generally speaking, most land appreciates in value over time because it becomes increasingly scarce as development increases. Although this is not always true, it is usually a safe
Lower prices
Land is cheaper than houses or flats. This makes it more accessible for people who would otherwise be locked out of the property market.
Higher returns
While the return on real estate is generally higher than that on other investments, it is even higher for plots of land. They are usually priced low, so their value increases quicker than that of flats.
Flexibility
When you purchase a plot, you can use it as per your whims and fancies. You can build a house on it as per your requirements and budget, use it for farming or let it stay vacant until you need it. It also gives you the freedom to sell it whenever you want to.
More options
There are lots of different types of plots in Lucknow available to buy – in built-up areas, near transport links and amenities, on new developments and rural locations, for example. With so much choice, there’s the opportunity to find exactly what you’re looking for.
Potential capital growth
The value of land can increase rapidly over time as demand outstrips supply – particularly in urban areas where space is limited. This could make it an attractive investment prospect, as long as you can afford to wait for your investment to pay off. However, if you need immediate rental income or want quick access to your money, this isn’t the right option for you.