There are new housing projects that are offering great value for the money. With the year 2022 in mind, it is important to understand which investment is safe and will bring more value to money in the long run. Also, you should know where to invest: plot of file?
As the new housing projects like Blue World City, Capital Smart City, RUDN Enclave, NOVA City, etc. are developing at a rapid, the question of plot or file is becoming more common. It is time to address this question in light of new housing societies being developed in 2022. But first, it is important to clarify the difference between the two.
Plot and Plot File – Difference
A plot is a fixed piece of land that one can visit physically and people can make their investment by seeing the land first. Whereas a plot file is a document of a plot that is not balloted yet and the property cannot be physically identified as the land is allotted yet.
This document is not insurance that the plot will be allotted to the person holding the file. Although the plot file is a commitment between the developers and investors that the plot will be balloted to the person holding the file.
For detailed differences, please read: What Is The Difference Between Plot And File.
Common Reasons to Invest in Plot
People are usually interested in purchasing land rather than a file for many reasons. A plot is a physical piece of land that can be identified and the documents can be verified by the concerned authorities. There are two main reasons that people are interested in investing their hard-earned money in a plot.
Investors who are looking to build an infrastructure on a plot cannot wait for balloting as in the case of the plot file. Therefore, they prefer to buy land and start the construction right away. This saves them time and cost as the new building materials are going to cost more with increasing inflation.
The second is quite simple and that is to hold the property and sell it for profit in the future. Property is expected to increase in value and it can easily be liquidated whenever needed as there is no wait to hand over the property.
Common Reasons to Invest in Plot Files
Plot files are considered one of the riskiest investments but still people prefer them over buying a plot. Investors are usually intrigued by the exponential value that these files are going to bring in the future.
New developers circulate plot files as a sign of commitment to their future development. Plot Files are cheaper to purchase and small investors are usually expecting more returns on their investment in plot files. In this way, they can sell their files at an appreciated price once society is near completion.
Plot or Plot File – Better Investment Opportunity?
The question remains which investment option is best suited in the context of new housing societies. These new housing societies cannot offer a physical piece of land as of now since they are in their development phase.
They can only offer plot files since they can use the money from selling these files that can be used in the development of the project. In the light of new developing housing societies, it is easier to recommend plot files as the more convenient option to invest.
However, people need to be careful before investing their money in plot files since it is riskier than investing in plots. It is important to mitigate any risk before making any substantial investment. This can be done by verifying the credibility of the developers. One can also visit the land allocated for the housing project.
The development work can be verified from the sources or by visiting the location personally. It is important to identify the last time balloting was conducted for the plot files. This will serve as an additional assurance that the developers are serious about developing a top-notch housing society.
Plots are only suitable for people who can afford the inflated prices of 2022. Moreover, the people who are risk aversive can also opt to invest in plots because all the documents are verifiable by the concerned authorities. Hence, the investment can be a subjective matter for many investors and depends on the market conditions as well.
Conclusion
We hope this blog cleared your doubts and gave you a clear idea of where to invest: plot or file. In case you are still confused about your investment, contact us and we will help you identify the best investment options in your budget.
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