Pros and Cons of Real Estate
Investing on real estate and purchasing land has become an essential for the modern family, especially Indians. Buying land provides security and its resale value acts as a means of monetary benefits in the future. But what real estate agents or any advisor per se do not tell you are that; investing in land does come with a ‘conditions applied’. What people fail to understand is that although you invest on a land, it doesn’t necessarily have to be a good one. There are various factors to be considered before venturing into it and here, let us help you make the right decisions.
1. Customization: Well, it’s your land. You get to do anything you want with it. Build your dream house, a park, commercialize it, rent it, or simply let its value rise and wait for the right moment to sell it again. So make sure you see a prospective possibility of having a productive outcome out of this investment.
2. Inflation: The main reason why people buy land: the resale value. Depending on how close the proximity of the land is to prime locations, the inflation value varies accordingly. Do proper research prior to making the big decision.
3. Low Maintenance: If you do choose to be passive and let the land’s value inflate, your maintenance cost drops to just fencing, mowing and preventing trespassers.
1. Scarcity of Land: The most important problem investors face is how quality land is a rare sight. People always look for the right place with the right price but at the wrong time. Demand is pretty high and you need to play your cards right.
2. Resale problems: When people are ready to let go of their land investment and get the money for it, they don’t seem to find the right person to sell it to. People have differing expectations and it genuinely is hard to meet all of them.
3. Tax Complications: Tax regulations when not followed properly can result in penalization of land.
To be short, if you do properly plan and execute your strategy to invest correctly by finding the right property with maximum pros and minimum cons, you end up with your hand in a goldmine and it will easily be the best decision you have ever made. Choose wisely. It’s either go hard or go home!