There is no property more valuable in the long run than land. And over the years, many savvy friends have made investments in plots a winning formula for big capital gains.
Of course, you must be sensible to ensure you don’t get stuck with dud deeds, where ownership and the right of the seller to transfer the land come into question.
There was a time when summer homes were popular. Many with money to spare would invest in a home in the hills. This led to realty prices in popular hilly destinations escalating significantly. Oflate though, the focus has shifted to building farmhouses on the outskirts of big cities.
Plots of land in areas not far from big cities often don’t command high values compared to those within the city.
People who invested in land in Navi Mumbai (now the site for the proposed new Mumbai airport), in Devanahalli (where the new Bangalore airport is), in Salt Lake, Kolkata, or in Gurgaon or Noida in NCR, have reaped big rewards.
As cities grow, they expand. To illustrate, prominent educational institutions usually built on the outskirts of cities are now very much part of them.
Think of the IITs and IIMs in prominent cities. Most of these are now in the heart of the cities that were once considered remote. Can you imagine the value of that land today?
Industrial areas have vanished and towering residential buildings and sprawling malls have taken their place, unlocking huge value for many corporate houses.
In fact, the value of this asset is so high today that it has turned many an industrialist with large tracts of industrial land in cities into developers.
So, think long-term. If you find promising plots of land with clear titles not too far from your city, consider investing in a weekend home and a wealth-creating asset.
Former Editor, Outlook Business and Executive Editor, NDTV Profit, the writer is a personal finance expert. Mail him at propertyplus@thehindu.co.in
