Right from the adoption of the open economic policies by the government, there has seen changes in the attitude of not only urban but semi urban and rural population towards investments. Even in rural India awareness of return with safety has developed significantly. People of India have changed their asset class from traditional bank deposits and government securities and are shifting to shares, bonds and mutual funds. However feeling of risk in share market still hangs over the minds of common citizen.
Middle class person today look towards housing not only as a need, but an avenue for investment as well. Therefore real estate as an asset for middle class has created its own status in the investment market today.
Investment in real estate is mainly done through agriculture land, title clear plots and farm
houses. Agricultural land is classified under various categories according to the land revenue act. The 7/12 extract of the land shows various transactions like watan, inam etc. Therefore if a land is purchased without carrying out proper due diligence through an expert, such transactions tend to fall in the legal traps.
Investments in purchase of flats and bungalows is very high however the returns on such investments are also not very lucrative and tempting. The investor in the real estate has to wait for a longer duration to get higher yields in built up investment.
Another avenue of investment is pre developed plots. The developer readily gives the investor documents like search reports. ADTP approved plans, N.A. order and all government consents and permissions. The property is also well secured with de-marketed plots, good fencing and compound walling with water and power supply. Therefore investment in the pre-developed title clear plots is less risky and is easily marketable also with low investment and high profitability.
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