NRI Q&A: Is investing in land in India by NRIs a good and logical decision?

Here is a question from an online forum answered by our editor.

Is investing in land in India by NRIs a good and logical decision?

I see some downfalls in it.But let somebody answer this question.

Let us break the question down into the key components: Is investing in land in India by NRIs a good and logical decision?

Investing in Land – ?Like other investments in physical assets, the basic mantra holds – location, location, location.

  • A parcel of land Land in a tier-3 city, say in Sangli in Maharashtra may or may not generate the same return as in Mumbai.
  • Encroachments, squatting and land-grab are all too common. Therefore investing is land is inherently risky.

good and logical decision?

A ?good? and ?logical? investment takes into account risks (vs rewards). Higher the risk, greater the reward.

  • By this account, investing in Land is generally a good decision; as the old adage goes They don’t make land anymore
  • However, the regulatory system in India continues to be in a flux. And the legal system is bogged down with civil disputes, most of them involving land and property. Herein lies the risk

Bottomline: Investing in Land in India is not for the faint of heart. Invest wisely and with caution. Make sure you are able to safeguard the investment and stomach the risk.

ps: I have a personal story on investing in land and land-grab, that thankfully ended well? but will not bore you with the details.

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