Is buying vacant land a good investment?

Investment in land in India is one of the most popular options because you can earn a profit out of it at any time. You can sell it if you need money urgently or you can rent it out and earn a stable monthly income. When my parents purchased the property they had to take a loan but to maintain financial stability they rented their house and from rent money, they paid off the home loan. 

Now, on vacant land, you can construct a building for residential purposes, or you can use it for commercial purposes. You may wonder if buying vacant land is a good investment. Well, there are pros and cons to everything. I will share the pros and cons of buying vacant land so that you can decide if you want to buy a piece of vacant land.

Pros:

• You can rent, run a business, and construct a house after purchasing vacant land.

• You can expect a return of investment by purchasing vacant land,

• You can enjoy direct ownership after purchasing vacant land.

• Vacant land does not require much maintenance.

• Taxes levied on vacant land are generally lower.

Cons:

• It is extremely difficult to get a loan for vacant land.

• Even though you will get a Return of Investment (ROI) after renting out vacant land, the process is very slow and often gets delayed.

• You cannot claim tax exemption for depreciation of vacant land. 

• Getting permission to run a business on vacant land can be a strenuous task.

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