If you bought a piece of land Bangalore two decades ago, you’d probably think that land is undoubtedly the best thing to invest in real estate market. But if you bought it after 2010, you can’t expect higher returns. The rates however depend on the location, but if you compare buying a home vs. land, you’ll realize that investing in house, especially the luxury properties in Bangalore has more value.
Even the real estate experts agree that buying land in Bangalore is no more a good idea if you’re not building a home. No matter how small or big the land is, buying a home in Bangalore is the right option to invest in real estate market.
No matter how much knowledge you possess about the Bangalore real estate market, there is always a risk attached to it. The same goes with every single real estate market in the world and every single investment opportunity. Risk is always there, but what matter the most is how much risk? If you are going to invest in land rather than buying a villa or apartment, the risk is high.
Your investment in land relies more on speculations. When buying, many investors believe that the rates will increase and in future, they will be able to sell it on very high price. Here comes the problem. Speculations and assumptions don’t always turn out to be true. On the other hand, the risk in buying a house is less than you think.
Of course, if you are buying a villa from a reliable real estate developer, there’s always a guarantee that the property will be located in a place where many other people live. One strong reason behind why real estate experts suggest buying a house is that it never loses value if the property is purchased smartly.
Some people may argue that the same can happen with land as well. The problem with land is that even after holding it for years, you will be having only a dirt-filled asset for which you will be paying taxes. Land is risky not only from the financial point of view, but it also brings a lot of problems because it can become undevelopable due to any of the issues caused by people and government restrictions etc.
Investment in house gives you added benefits. Even if you do not live in India or live in some other place, at least you will be having a place which you can call home, away from where you currently live. When real estate developers build luxury villas, they make sure providing complete protection of the property. When people start living in the community, they do care about each other’s assets and take care of things in the premise.
Such luxury cannot be expected from an investment in land. So unless you are going to develop something on the land, it is always better to invest in house, rather than buying a piece of dirt which will remain the same every time you visit and there will be nothing to see, cherish and feel proud about.