Pros and Cons of Agriculture and Open Land
Land investment has always been popular in India and no doubt in Hyderabad too. Its popularity has not come down at all. Despite the availability of various financial products such as mutual funds and equity shares, one needs to be aware of all the pros and cons of investing inland. There is much land for sale in Hyderabad. Real estate companies in Hyderabad are much involved in it.
A limited supply of land
The supply of land is limited of course. Due to its limited supply and the ever-increasing need, the demand for land has been going up. There is a continuous demand for it. The price of land has been similar to other assets such as gold and equity.
Those who have fewer savings cannot afford to invest inland. It would be better for them to opt for financial assets such as units of mutual funds, shares, recurring deposits or even gold. It is advisable to get in touch with a real estate developer.
Risk of Acquisition and Encroachment of land
There is much encroachment of land thus causing investments to sink. Legal cost concerning land-based problems is very high. Real estate companies in Hyderabad do provide much information regarding legal battles concerning land.
Non-availability of Finance for Buying Land
In case a person wants to construct a property on a plot of land, it is necessary to get a composite loan covering the cost of the plot and the cost of construction. However, no bank will generally lend money in order to buy a plot of land, unless the same is purchased from an endorsed and reputed government development authority such as DDA or MHADA.
Urban investors are usually on the lookout for the returns potential of agricultural land in the suburban or peripheral areas of big cities and state capitals.
There is an increasing demand for land due to its scarcity and the high price of land in cities, with urban investors buying it to earn profits on resale or use it for cultivation.
The land purchase is considered to be one of the best long-term investment options and is much sought after no doubt despite an occasional slump in urban reality markets. Real estate developers can be the best guide in purchasing land.
Potential ROI on Agricultural Land
The returns of land are higher in emerging and developing areas, where there is a possibility of upcoming infrastructure projects, such as a special economic zone or even a highway. The land is valuable if it is located in an area where some government scheme is to be launched, or if it is included in the master plan of the region. In fact, chances are that such a piece of land will fetch higher value in the future after investment.
Advantages of investing in agricultural land
An agricultural land plot can indeed guarantee long-term returns if it is in an area where the government has planned some infrastructure projects in the near future.
Moreover, the compensation, in the case of acquisition by the government, is higher for rural land than that for urban land. A number of state governments are also planning a land pooling policy, for areas where the city is expanding. If you become an owner under the land pooling policy, you will get guaranteed regular returns from the pool. Real estate ventures in Hyderabad are many which can throw light in this area of land purchase.
Top ten real estate companies in Hyderabad do cater to the requirements of land investors and have much insight into the purchasing processes.
