Vacant land: Source of regular income in different parts of Bangalore
Land is one of the basic pillar of economics and is termed as a prized commodity. Owning a land even on the outskirts of Bangalore can be deemed as a natural source of regular income, given the growth in construction activities. If used in the appropriate manner, a vacant land can turn out to be an excellent source of revenue generation.
Though the price varies depending on the peripheral infrastructure, landowners are required to form a joint venture with builders and developers to register their profits. Even a small piece of land (measuring 2400 sq ft) that is adjacent to Ring Road or National Highway can bring to pass revenue for the property owner in Bangalore.
Joint venture with builders
A joint venture between the builder and landowner is one of the common approaches to make use of a vacant land and generate revenue. Such joint ventures include details regarding time frame, construction and profit sharing. The builder/developer takes the complete responsibility in regard to sales, marketing and construction of the apartments.
The profit is divided in a 50:50 or 40:60 proportion and all the documentation (like approval certificates, sanctions and rulings) are in the name of the land owner. Around 10-12% of the deal is offered to the owner in advance, which is non-refundable. Furthermore, a 10% of the deal is forwarded to the land owner,which is refundable after the project completion.
Independent residential development
Independent homes and residential developments can also prove to be a regular source of revenue. For example, a land situated in a by-lane near Kathriguppe Road is likely to generate a whopping Rs 50000 per month. However, a 2400 sq ft of property in Bidadi, on the outskirts of Bangalore, calls for a different approach. 2 independent houses with different entrance including 2BHK constructed on a 2400 sq ft property will yield around Rs 7000 per month. Contrary to that, five 1 BHKs with independent access will generate around Rs 10000 per month.
Apartments
A 2400 sq ft of land, constructed near the NICE road in south Bangalore will yield lucrative returns if built as an apartment. A property of 2400 sq ft of land generally includes 3 independent apartments together with a parking space compound. With an expected built-up area of 1800 sq ft, experts are of the notion that such apartments will yield a rent of Rs 12000 per month.
