Advantages of investing in HMDA-Approved Plots
Those who are looking at investing in property in the Hyderabad realty market with an eye on healthy returns, there is no better option than investing in plots. Moreover, to be on the safer side, it would always be advisable to invest in plots that are approved by the Hyderabad Metropolitan Development Authority (HMDA).
HMDA-approved plots come with guaranteed infra development:
Investment in HMDA-approved plots is advantageous as it comes with guaranteed infrastructure development. For such plots, the developer/buyer is obliged to provide amenities such as a proper water system, drainage system as well as electrification. Besides, areas surrounding such plots should also provide other public amenities such as well-laid roads, street lighting as well as plantation along the roads.
Developer/Buyer of such plots involved in development:
The developer or the buyer is also obliged to mortgage 25% of the plot to the HMDA as a guarantee for completing all the development work as is required of him by the authority. However, he is free to part with the remaining area of the plot even without completing the development work that is needed. The entire plot is released by the authority once the development work is completed by him.
Surplus demand causes availability crunch:
Considering that capital appreciation is the governing factor that controls the return on investment in the realty market, buyers of HMDA-approved plots can rest assured on this count. Given the fact that development on these plots is guaranteed, investors can be assured of sustained and healthy appreciation on these plots. However, demand for such plots is considerably higher compared to the supply, thereby putting buyers in a conundrum. Thus due to the limited availability of such plots, it is imperative that buyers will have to shell out more money to buy them. However, they will stand to benefit in the long run due to the considerable appreciation that these plots will garner.
Bank finance not a worry:
Finance is not a worry for those interested in investing in an HMDA-approved plot. Banks are more than willing to extend finance to prospective buyers interested in buying government-approved plots. Besides the prospect of fetching healthy returns on their investment in such plots, it also helps in the overall development of the locality as the authorities will take necessary steps to see that it is well-planned. This will indirectly benefit the city as a whole.
