Pros and cons of land investment

Investment in land or real estate market can both be fruitful and can also be a disaster. Investing in land may seem to be easy. There are many making profit by buying and selling raw lands, but in order to become successful land investors, homework needs to done meticulously which can teach important lessons hard way. Hence, it is very important to have the research well done before indulging into any kind of investment. If individuals buy affordable flats in Kolkata and try to sell it at a huge amount, it can result in disaster.

Pros –

  • There is opportunity to create the best. One can create and make the land use in his own way.
  • Direct ownership can be gained. No tenant will be able to intervene in between to create any kind of havoc regarding the land.
  • This is basically a cheap investment than any other, especially because property taxes and fees are often lower than they are on developed land.
  • Lands need less maintenance more than completed project. For instance, if you buy properties in Kolkata, which is a land, that will need no such maintenance which you have to do in case of flats and apartments.

Cons –

  • It is actually more challenging to get traditional financing to purchase a land. Hence, if you build on it and then the property fails to get sold right away, your money is tied up in the deal while you wait.
  • Tax advantages are very little in number if one invests in a land.
  • Cash flow doesn’t happen not exactly the way you expect to be. If rental income stops coming in, one surely may need to be creative for covering all the expenses.
  • A huge numbers of permits and approvals are required for such an investment which is actually a quite time consuming task.

Land as an investment option has always been popular in India. But, people hardly know how the processes take place, and what are its pros and cons! Land investment may sound very interesting and fruitful but the correct research is the main aspect that can bring rays of hope.

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