Do you have a dream to own a piece of land? If yes, then it’s high time you started looking into the opportunities that are available in the land market. The real estate market is going through a phase of transformation right now. It has seen a lot of turbulence and many changes, but you need to understand that these changes will only help you and your future generations. In this blog, you will learn some important insights that you need to keep in mind before purchasing land. You will also learn about the factors you should consider before you decide on purchasing land. If you are reading this blog, then it is very likely that you are planning to purchase land soon. Read on to know more about the 5 important things you should know before you purchase land.
The land price is rising rapidly
The land purchase was never challenging till recently. However, if you look at the numbers carefully, you will see that the prices are getting very high. People are now buying a lot of land because of the rising prices. The land is the one investment that you can hold for a long time. It is not like stocks or bonds that can make you money only for a few years. You can keep the assets for as long as you like. This is the reason why many people are now coming forward and trying to purchase land. The prices of land are increasing rapidly, but the good news is that you can still purchase good quality land at a cheaper price. Do your research well and you will find the best deals online.
The availability of land is getting harder
Right now, there is a big crisis in the real estate sector. Many people are quitting their jobs and there is a shortage of homebuyers. As a result, the prices are going down and you can now purchase a lot of land for a cheap price. However, we have to understand that a piece of land is an asset that is going to hold its value for a long time. It is not like other assets like stocks, bonds, or money. It will never lose its value. Therefore, if you purchase land and the market changes, you can expect the land prices to increase. You will have to wait for a long time to see an increase in land prices. The good news is that you can buy land online and there will be no issues regarding accessibility.
The tax benefits of purchasing land
Over the years, the government has started providing tax benefits to the people who want to purchase land. You can claim a tax deduction of 10% on the purchase amount. This is a great deal because if you purchase a piece of land for a price above Rs 2.5 crore, you will be paying 20% Income Tax on that amount. However, if you purchase that same piece of land for Rs 10 lakh, you will be saving Rs 2.5 crore to the banks in the form of Income Tax. This is going to be a great deal for many people out there. The tax benefits of purchasing land are going to increase over the years, so do not forget to review them again and again.
You get to own an asset for a long time
When you purchase land, you are purchasing an asset. You can sell it as and when you want to. The land is never going to lose its value, so you can always sell it at a higher price in the future. It is not like other assets where you need to store them in a vault or a house. It is going to be safe in the form of a piece of land for a long time. You will have to pay some taxes if the transaction value is less than Rs 2.5 crore or if you have purchased land for less than Rs 50 lakh. However, if a person has made a mistake and wants to correct it, you do not have to spend a single penny. You can just take the same piece of land and pay the taxes. This is going to be your asset for a long time, but it does not mean you need to worry about it. The government is continuously working on policies that will make the land market more stable. They are going to introduce several new policies in the upcoming years. You can also keep an eye on the government initiatives to get updates.
Market Value to Consider with Timeframe
You can understand the market well before purchasing any land. You can take the help of professionals and online portals. They can help you find the best deals in the market. The transaction amount needs to be at least $150,000 to claim the tax benefits. You can take the help of a tax agent if you are purchasing land worth $35,000 or less. The government has started levying higher stamp duty on the transactions of land worth more than $90,000. You need to shell out higher stamp duty on transactions of $90,000 or more. You can get the details of stamp duty from government portals. You need to understand the nature of the land well. If you are buying a plot in the mountains or on rocky land, do not take it lightly. You can damage your assets easily if you don’t take care of them properly. The vendors are always offering discounts if you are willing to make a deal. You can try to bargain with them and get the discounts offered by the vendors.
Conclusion
The real estate market is going through a transformation right now. Even in the last couple of years, there were so many changes in the market and they are continuing with that momentum. It is high time that you start looking into the opportunities that are going to be available in the land market. The factors you need to keep in mind before purchasing land are the availability of land, the increasing prices of land, the tax benefits of purchasing land, and the long-term asset nature of the land. These are the five important things you need to know before purchasing land. The best part is that the market is very easy to navigate. You just need to do your research well and you will find the best deals in the market.
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