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The Plotline of Investment

December 3, 2012 Leave a comment

Invest in Plots Chennai

 

Many people are looking at plots in the peripheries of the city as a means of short and medium-term investment.Arjun Narayanan finds out more

Land is undoubtedly emerging as a much sought after asset for investments.While purchasing a plot by end users is common,there are many who look for plots as a short to medium term investment.Since availability of plots within the city limits seems beyond question,the obvious choice is the outskirts,where a lot of manufacturing companies have set up shop.
Buying a plot calls for lower finances and allures many investors for this very reason.”I personally feel that property requires more money and the appreciation that happens in case of an apartment is not as high as in case of a plot,”says Mahipat Bhandari,a city-based businessman,who has purchased a plot in Kayarambedu.
It is areas like these that are up for grabs on the investment map today.”The area towards GST,Oragadam,Sriperumbudur and the stretch along the ECR,after Muttukaadu,are attracting investors and developers today.The connectivity is improving in these areas and many educational institutions and hospitals are being proposed here.These aspects work like a trigger for developers and investors,who are looking for plots in the suburbs of the city.It works well as a long-term investment,”says Wilson Mathews,Director,Sales and Marketing,TVH.

With increased economic activities and growing income,space for residential property has become an issue in Chennai.Employees of multinationals and manufacturing enterprises (that are set up on the outskirts) are also planning for a permanent residence in these areas and as that happens,what was once a suburb has now become a part of the city.”Even a few years ago,Tambaram was seen as a suburb.But today,it has become a part of the city.There are many IT professionals residing in the area there and facilities are increasing there,”says Rakesh Jain,a city-based entrepreneur,who has invested in a plot near Guduvanchery and has plans not to sell the plot for at least the next three years.”After seeing some appreciation,I am planning to get into a joint development with a builder,”says Rakesh,who holds the plot jointly with another investor.
“Most real estate developments being proposed in recent times follow the joint development route.In such a case,a developer doesn’t invest money in land;both partners join hands to develop property,”says Wilson.Rakesh also sees a lot of merit in investing in a plot over a house.”Apartments require a lot of maintenance and that becomes cumbersome if you are living in another city.Besides,you can do a lot with a plot.Selling it becomes easier,”he says.

So how does a person clearly decide between investing in a plot and a house Wilson feels that one needs to prioritise his/her needs and keep the budget in mind,which means that the purpose of investment,the time in hand to remain invested,the source of funding and the desired cash flow are the key factors while making a decision.”Don’t bite off more than you can chew,”he says,with a note of caution.”If a person already has a house,then its ideal to invest in a plot in one of the locations in the suburbs.Growth is happening in the periphery of the city,”he says.A planned decision will then help a person invest in plots as a short term or medium term investment.

As published in Times of India, Times Property – December 2, 2012