Land investment is an ultimate and a most popular form of investment for Indian people. The investment potential of land is immense, especially in emerging areas of India like Lucknow (The capital of Uttar Pradesh) where people are willing to invest in properties for their future needs or simply for their children’s security and peace of mind. Land can be bought as an investment or sold off later at a high price as a business opportunity.
Land is a great asset for investors because of its price stability, its flexible nature, and zero maintenance cost. Besides, there is always demand for land because of its high returns and low risk compared to other forms of investing like stocks and shares.
What is Investment Land?
Investment land is a type of real estate property that, although it may be located in an urban center or a rural area, is used for development purposes. Due to its high return on investment, investment land, also known as speculative land, is one of the most popular types of residential and commercial property.
Investors typically purchase investment land with the intention of developing it into commercial or residential buildings. After achieving the desired goals and expectations from the project, the investor will sell the property at a high price, that’s why it is called investment land.
Investing in Land Pros and Cons
Investing in Land in Lucknow is one of the best ways to secure your future and get a huge profit after its sale. Land investment is a viable way to build wealth. The asset class has historically offered attractive returns, but it comes with its fair share of risks. Below are the key pros and cons of land investment in India to help you make an informed decision.
|Pros of Land Investment||Cons of Land Investment|
|1. Income||1. No Tax Benefits|
|2. Portfolio diversification||2. Need good credit for loan|
|3. Zero maintenance cost||3. Building over it will qualify you for a land loan|
|4. Low price|
|5. Low tax|
Explaining Above Top 6 Benefits of buying land for investment
Land is an income generating asset. There is a rise in land prices, and investing in land gives you the freedom to buy and sell it according to your financial goals. With a self-directed investment, you are in complete control of your decisions, so you can either sell or hold the investment at any time.
Investments in land produce income without requiring capital outlay or risk, which makes them one of the few assets that offer good returns in future. The only thing required of you is patience, as land prices tend to go up over time, even if there are no major changes in the market.
Gaining an exposure to real estate through buying property helps diversify your portfolio and reduce risk and volatility.
4. Zero maintenance cost:
There are no maintenance costs associated with land investments, such as water, electricity, gas, etc. So you can invest a lot of money in it without worrying about the maintenance cost.
5. Low price:
The price of investment land is comparatively low as compared to commercial and residential land. The main reason behind the low value of land for investment is its location. Most of the land available for investment in India is located in areas that are currently under development or that will be developed soon which is the main reason behind the low price of land.
6. Low tax:
A land is not taxed when it is sold or transferred to another, unlike other assets like stocks and shares. So, if you buy land for your business, you won’t have to pay taxes, which is beneficial for your growth and expansion.
Lucknow: Best Place to Buy Land for Investment
As per real estate experts of India, Lucknow (The capital of U.P) is one of the finest and best places to buy land for investment. The city has a lot to offer investors, especially those looking to buy cheap land in Lucknow. Here are some reasons why Lucknow is the best place to buy plot in Lucknow:
4 Key Reasons Why Lucknow is the Best Place to Invest in Land in India
1. Affordable Price:
The price of land in Lucknow is comparatively low as compared to other posh cities of India like – Delhi NCR, Bangalore, Pune, Mumbai, Hyderabad and so on. The price of land for investment in Lucknow can be anywhere in between Rs 500 to Rs 1000 per sq. ft. Besides, you will get the plot in the price range in a developing zone like Karora, Khujauli, Purvanchal Expressway, etc. which will surely offer you a huge ROI in future.
2. High Demand:
In Lucknow, the demand for land or property has increased three times over the past decade, reflecting the city’s growth. Many NRIs and investors from other states of India see Lucknow as a business opportunity. Due to the development of India’s biggest mall (Lulu Mall) and posh areas like golf city, Lucknow property demand has risen.
3. Safe Place:
The biggest reason why people want to buy land in Lucknow is that it is a very safe place to live. There are many places where people can walk around without worrying about being mugged or robbed because they have too much money on them or if they look like someone who might be associated with criminals.
4. Good Location:
Entrepreneurs, professionals, and skilled workers have flocked to Lucknow for many years. In recent years, the city has undergone a lot of development. Besides, The city is known for its historical importance and cultural legacy. It is also considered as one of the most beautiful cities in India.
FAQs on Land Investment
1. Is buying land a good investment?
Ans – Yes, buying an investment land is an ideal option for investors. As opposed to stocks & shares, land investment is relatively safe since its price only rises if it is located in a good area. So without any doubt the answer is short and simple which is Yes.
2. Is land good investment?
Ans – Yes, Land is one of the best investments you can make. The land investment market is one of the safest investments in the world, with a long history of producing cash flow.
3. How to invest in land and make money?
Ans – Well making money by investing in land is pretty easy the all you need is patience. In real estate, there is a gold line called “Buy and Hold”, which itself is a money-making strategy. It is a good idea to buy a property in a good area and hold it until the price of land increases. Once the price of the land increases you can sell it at a higher price and make a profit out of it.
4. How to choose land for investment?
Ans – 5 Steps to find your ideal investment land: –
- Consider the type of land you required – Your Investment objective
- Know everything about market condition in that particular area
- Try to find the best location
- Get a reputed land developer
- Check all the legal documents carefully
5. Should i buy land as an investment?
Ans – Yes.