Calculation of Property Tax in Delhi

The formula for calculating the Property Tax in Delhi is given as below. 

Annual Property Tax:

Annual Value x Rate of Tax x Exemption Category

                                  100

Where...

Annual Value: Unit Area Value (Rs/ sq.mt.) x Covered area (sq.mt.) x Age Factor x Structure Factor x Use Factor x Occupancy Factor x Flat Factor

Unit Area Value for properties falling under any of the following colony categories (Rs./ sq.mt.):

A	630	E	270
B	500	F	230
C	400	G	200
D	320	H	100

Age Factor:

• 0.5: if construction completed before 31 Mar, 1960
• 0.8: if construction period falls between 01 Apr, 1980 to 31 Mar, 1990

Structure Factor:

• Pucca Type: factor 1 (buildings with load bearing roof)
• Semi-Pucca type: factor 0.7 (buildings with normal load bearing roof like tukri)
• Kutcha type: factor 0.5 (buildings with temporary material for walls and roofing, including tin sheds/ asbestos sheets)

Use Factor:

Below is the Use of Property with the corresponding Use Factor:

Residential: 1	Schools (fee Rs.600-1200/ month): 2
Business- Self-occupied/ tenanted: 4	Schools (fee beyond Rs.1200/ month): 3
Industrial- Self-occupied/ tenanted: 3	Colleges (Govt.): 1
Government/ Government aided schools/ colleges: 1	Colleges (UGC Recognized): 1
Hotels (3 star and above): 10	Colleges (Trust): 2
Towers: 10	Educational Institutes (fee below Rs.600/ month): 1
Hoardings: 10	Educational Institutes (fee Rs.600-1200/ month): 2
Public Purpose: 1	Educational Institutes (fee beyond Rs.1200/ month): 3
Public Utility: 2	Educational Institutes (Govt.): 1
Religious Institution: 1	University: 1
Telecommunication tower: 2
Business- Vacant: 2	Medical Institution (Govt.): 1
Industrial- Vacant: 2	Medical Institution (others, including nursing homes): 2
Hazardous building: 4	Medical Education Institution (Govt.): 1
Workshops & Auto-repair Garages: 3	Medical Education Institution 1: 1
Restaurant: 4	Medical Education Institution 2 (approved by tech.body): 2
Hotels (up to 2 star): 4	Medical Education Institution 3: 3
Lodges: 4	Schools (Govt./ Govt. aided): 1
Guest Houses: 4	Schools (fee below Rs.600/ month): 1
Banquet Halls: 4	Schools (fee Rs.600-1200/ month): 2
Recreation (Movie halls, Theatres, City halls, Assembly halls, Exhibitions, Baratghars, Museums, Auditoriums, etc.): 3	Schools (fee beyond Rs.120/ month): 3
Mercantile (Shops, STD booths, Warehouses, Transporters, Wholesale traders, Cold Storage, etc.): 4	Vacant land in use: Relevant use factor
Sports Purpose (Gym, Clubs, Sports, Dance halls, Health Club, Recreation piers, Bowling alleys, etc.): 3	Vacant land (no use): 1

Occupancy Factor:

• Residential (self-occupied): 1
• Residential (rented): 2
• Non-Residential (self-occupied): 1
• Non-Residential (rented): 1
• Farmhouse Residential (self-occupied):1
• Farmhouse Residential (tenanted): 2
• Government- Residential (self-occupied): 1
• Government-Residential (rented): 1
• Government- Non-Residential (self-occupied): 1
• Government- Non-Residential (rented): 1
• Farmhouse- Non-Residential (self-occupied):1
• Farmhouse- Non-Residential (tenanted): 1

Flat Factor: (applicable only for DDA/ CGHS flats):

Up to 100 sq.mt.on prorata basis: factor of 0.9

Rate of Tax:

1. Residential Rate of Tax (%):

• A, B, C, D and E: 10
• F, G and H: 6

2. Non-Residential Rate of Tax (%):

• A, B, C, D, E, F, G and H: 10

Exemption Category (if not applicable value is taken as 1):

Agricultural- Sec 115(1)(i), Vacant land or building in village abadi occupied for residential purpose by any original owner or legal heir up to 200 sq.mts. of covered space (on pro-rata basis), exclusively used for public worship- Sec 115(1)(iii), used for public charity- Sec 115(1)(iv), land and building exclusively used for burial/ cremation ground- Sec 115(1)(v), heritage lands and buildings- Sec 115(1)(vi), owned by war widow/ gallantry award winner being permanently used for self-residence and no portion is let out for any purpose whatsoever-Sec 115(1)(vii) and land and building of Corporation as per section- Sec 115 (1)(viii).

For all the above mentioned categories, the factor is taken as ‘0’.

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Buy Yourself a Residential Apartment in Mumbai - Flats in Mumbai City

Mumbai shares the same old story of little land and millions to shelter! Real estate Mumbai prices soar the highest as compared to any other metro. Apartment and flat culture is the buzz in Mumbai as it poses a cut-throat competition to individual housing. It is not that Mumbai always supported the apartment/ flat culture. Earlier, people had no problems in living in cramped spaces of “chawls” or, if someone was lucky enough, in their own individual houses. If the income earned could suffice the basic amenities it was considered as bliss. Let us together unravel the mystery of apartment culture in Mumbai.

Hailed as the business and commercial capital of India, the demand for shelter has sky-rocketed in Mumbai. The hot seat for Bollywood and fashion divas makes numerous aspirants head for Mumbai and feed their hunger for stardom. With millions of people flocking to Mumbai, the city is also embracing the apartment culture at a rapid pace. Imagine a situation, a plot of land with some fifty people trying to make it their shelter…what is it that can be done to accommodate all these on this single piece of land? Building an individual house is of course out of question, but yes, how about building houses one on top of the other so that each family gets its own house….This is what exactly MHADA (Maharashtra Housing and Area Development Authority) thought! Thus came in the apartment and flat culture which is a rave today. 

MHADA was set up in 1977 to provide reasonable housing facilities to the inhabitants of Maharashtra. MHDA built several cost-efficient housing projects by purchasing plots and transforming them into affordable flats or houses for the low-income, high-income and middle-income group. It came up with housing projects in Andheri, Ghatkopar, Oshiwara, Bandra-Kurla Complex, Powai. LIG and MIG flats were built in Bandra while LIG flats were constructed in Ghatkopar and Andheri. The apartment and flat concept received an overwhelming response as the space crunch and the increasing population did not provide any alternative and also the flats or apartments built by MHADA were far more affordable then the prevailing market prices. Under the housing schemes of MHADA, flats and apartments are allotted on a lottery system for an impartial distribution of flats. The flats built by MHADA were well-equipped with the basic amenities of water, power and sewage disposal. Seeing the response of the general masses towards MHADA housing projects many private builders also constructed apartments and flats with ultra modern facilities and luxurious exteriors. The apartment and flats trend started by MHADA was taken to new heights with the advent of fully-furnished apartments and flats.

MHADA has undertaken housing projects on a mass scale in Powai, Majaswadi, Oshiwara and Chandivali. The authority is again facing a space crunch; currently it owns around 100 hectares in Turbhe and Dindoshi primarily and is making efforts to acquire land in Vikhroli-Mulund region. Also, its recent housing schemes, particularly at Oshiwara, target the elite class the society. The township of Bhabrekar Nagar is one of the primary projects of MHADA. It is only due to the change initiated by MHADA that flats are available at a reasonable price in areas like Andheri and Chandivali. In the year 2009, MHADA launched the MHADA housing project for Versova to built flats for the creamy layer of the society.

Mumbaikars are now dreaming big, as big as to replace their “chawl” accommodation with the minimum of at least a one bedroom flat or an apartment. The craze of owning an apartment or flat is increasing at an exponential rate. The hearts of the inhabitants of Mumbai is craving for something more than just basic amenities in their dream home. There is no dearth of people ready to splurge out extra bucks to add a dash of comfort and luxury to their lives. After all, the earning capacity of the people is going up and so are the spending habits. There are several reasons why individual houses are lagging behind in the race with apartments and flats closer to the winning line.

The cost of an individual house/ plot of land is supposedly bound to drill a bigger hole in your pockets than purchasing a flat or an apartment. Moreover, the facilities in an apartment play a vital role in casting a spell on its prospective buyers. An apartment with elevators, 24-hour security and power back up, uninterrupted water supply, posh interiors, landscaped gardens, playground for kids, parking facility and lots more is but obvious given a preference to an individual house. The cost of an apartment or flat in Mumbai depends on the location as well as the facilities and your requirement for one- two- or three-bedroom apartment. So, if you are ready to part with your money for owning a stylish, comfy, secure and well-equipped apartment or flat, you better hurry before someone else books it. Walk with the times and be a part of the change—buy yourself an apartment or a flat today!

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Buy Residential properties in Delhi | Real estate Investment in Delhi

DDA (Delhi Development Authority) has divided Delhi into 16 zones namely, A (Old city), B (City extension-Karol Bagh), C (Civil Line), D (New Delhi), E (Trans Yamuna), F (South Delhi-I), G (West Delhi-I), H (North West Delhi-I), J (South Delhi-II), K (South West Delhi), L (West Delhi-III), M (North West Delhi-II), N (North West Delhi-III), O (River Yamuna), P (North Delhi) and M, N & P [Part] (Narela Subcity).  

The prominent residential areas of Delhi falling under any one of the above zones as per their location are Vasant Vihar, Janakpuri, Vikaspuri, Vasant Kunj, Dwarka, Lodhi Colony, Paschim Vihar, Preet Vihar, Mayapuri, Rohini, Naraina, Laxmibai Nagar, Golf Link, Chanakyapuri, Shanti Niketan, Jor Bagh, Lutyens Delhi, Panchshil Park, Friends Colony, Maharani Bagh, New Friends Colony, Gulmohar Park, Geetanjali Enclave, Hauz Khas, Padmini Enclave and Anand Niketan. 

Chanakyapuri, Lutyens Delhi, Golf Links, Sunder Nagar and Jor Bagh offer both individual houses as well as apartments for residential purpose. Most of the residential properties located in these regions are bungalows offering a lavish lifestyle. Let us unravel the mystery of why some of these specific residential areas fare better than the remaining areas. 

Golf Links colony comprises around 220 residential properties out of which apartments or flats outnumber the individual houses. The area has both big and small sized plots. It is one of the oldest colonies constructed in ’60s and has a peaceful and sophisticated neighborhood. Jor Bagh is a yet another old and quiet residential settlement. The houses are regular and located at an accessible distance from the market with trees lining the streets. It also has around 220 houses with majority of them being apartments. These were also built in the late ’60s. Sunder Nagar also has more of apartments (3 or 4 BHK) with a peaceful ambience and a small market of its own. The area is rich in parks located inside the colony. 

Lutyens Delhi is one of the best known addresses for residential properties. A posh area with grand houses boasting of far-stretched gardens drills a huge hole in the pockets. Chanakyapuri is an abode of expatriates and their families as it has British, American and German schools for their education. Also, Chanakyapuri houses several embassies. Thus, it is well-populated with foreign nationals. All the aforesaid residential areas face very less shortage of water and power cuts. The MCD takes special care to upkeep the maintenance of these colonies. Vasant Vihar is another residential area in demand with the green foliage lining the streets. An ideal location with close vicinity to the schools, embassies, airport and shopping centers make it pricey and posh.

Apart form the basic amenities of water, electricity and proper sewage facility Delhiites also look forward to other possible facilities like parks, parking space, club house, security, elevators, gym facilities and whether the residential area is in close vicinity to the shopping and commercial areas. With the spending limits going up, people are no more hesitant in splurging money to get a comfortable and luxurious lifestyle and a residential property which is chick and classy.

It is a responsibility of the civic or municipal authorities of Delhi to ensure a safe, clean and sustainable environment in the residential properties. Efforts should be made to fulfill the basic demands of water, electricity and sewage disposal and all the residential projects should be built in accordance to the law. While developing residential projects the civic authorities should ensure that the areas have ample of foliage to decrease the pollution. Rows of trees should be planted by the roadside. All measures should be taken to make Delhi the first choice of people rather then people fleeing away looking for a shelter somewhere else.

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Buy a property in Mumbai - the Commercial, Industrial and Entertainment Center of India

Mumbai—the commercial, industrial and entertainment center of India is undoubtedly the nation’s financial heartbeat in true sense. Being the focal point for economic activities (housing renowned financial institutions, maritime trade and multinational enterprises) and the bustling cultural affairs Mumbai holds a strong grip on the Real Estate market. Mumbai is well-connected to the rest of the country with an excellent air, road and railway network, which further adds to the soaring property prices. The growing importance of this metropolis on the Indian Map, a promising future, and the favorable living standard has amplified the property transactions to a large extent. Property purchase, selling, transferring and reselling have become a daily affair. All of this further entangles the already complicated process of buying a property in Mumbai. So it goes without saying that one needs to be extra careful while getting involved in buying a property as all your earnings and dreams are at a stake. It is advised to get all the legal documents scrutinized by an experienced lawyer as buying a property is a highly critical matter. Check out the below checklist for Mumbai for a smooth transaction and acquisition of a clear title. The essential documents required for verification depend on the region and the type of property. The following basic checklist needs to be verified before purchasing any property in Mumbai: Mother deed/ Sale deed: This is the most important document for tracing the ownership of the land. It gives details of the property as to how it was acquired at the initial stage and the subsequent series of transactions it has undergone. You should also check for the original sale agreement showing the builder/developer duly registered. Search Report: It provides details of the original property holder, property history, charges on the property, current property status (all dues paid or still pending) and the number of times the property has changed hands before being owned by the present seller. Your advocate will fetch you all these details and confirm whether it is a legitimate property for sale or not. Agreement: Once the property is decided, make an advance payment and get a written agreement on a stamp paper duly signed by both the owner and the buyer in the presence of two witnesses. An agreement must state: the advance paid, actual price, duration of actual sale, and legal actions to be taken in case of a default from either party. Stamp Duty: This should be paid in full and on a timely basis as per the Bombay Stamp Act, 1958 as it varies from place to place. To get an agreement stamped it should be without any signature or date and the agreement can be implemented only when the Stamp Office fixes stamps on it. Registration: Get the deed registration done in a sub registrar of assurances as per the Indian Registration Act within four months from the date of execution of the documents. If you fail to register the agreement within the time frame then you can register the agreement not extending beyond another four months by writing an application to the sub registrar of assurances and paying the legitimate fee. For registering a property you need: house tax/property receipts, original title deed, and previous deeds etc., two witnesses are also required at the time of registration. It is mandatory to get the property registered under Indian Registration Act, 1908 or else the buyer will not acquire the proper legal title of the property purchased. Encumberance Certificate: A latest Encumberance certificate having the details of last 30 years should be checked. It can be obtained from the sub registrar. Apart from the above checklist you should also ensure that the seller has obtained approvals from the Municipal Corporation, Electricity Boards, Area Development Authorities and Water Supply and Sewage Boards. After purchasing the property you should also get the owner’s name changed in all the government documents like 7/12 and 6/12 extracts, electricity department and also in all other government authorities to update the records once you have paid the applicable fee for the same.

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Apartments for sale in Dwarka

Dwarka sub city has a total of 29 sectors and teems with apartments and flats for sale. Dwarka is New Delhi’s biggest planned residential area with hot property options. The Metro connectivity to the adjoining area of Gurgaon makes it a favorite option for those employed in the commercial and business hub of Gurgaon. Metro connecting Dwarka to Noida, Anand Vihar, Rajouri Garden, Janakpuri, Punjabi Bagh, Karol Bagh, Chandni Chowk, Connaught Place, Pragati Maidan and Railway Station gives it a location advantage above others. The 32-lane Expressway connecting Delhi to Dwarka, together with all the factors above, has resulted in a price hike for apartments and flats in Dwarka.

Ø       CGHS Flats

CGHS or Co-operative Group Housing Society has primarily been involved in the residential development in this part of Delhi. Most of the CGHS flats comprise 3 BHK and 4 BHK flats with servant room. 2 BHK flats though available are comparatively smaller in number. A total of around 326 CGHS apartments have been developed with approximately 100 occupants in each society.

Ø       Dwarka Flats: Ideal investment property with profitable returns

Dwarka has also emerged as an excellent investment option for people as the property prices have been constantly seeing an incessant increase. This is reassuring enough for investing in a society flat in Dwarka that guarantees profitable returns. A property purchased now is sure to bring monetary rewards if sold at a later stage. With the flats being rented out the apartments purchased with the sole purpose of investment also yield a good income for the owners before they finally sell it off at a much higher price. Investors buy flats in Dwarka and put them up for sale after a year or two to acquire a new, larger and comparatively cheaper property in the adjoining areas or an expensive one in Dwarka itself to reap greater returns.

Better infrastructure, wider roads, cleanliness and planned structure of Dwarka sub city have been drawing many buyers to purchase a property. The amenities provided in the society flats like power back-up, water supply, security etc. add to the fact that more and more people have been eyeing Dwarka to own a flat. The facilities of course come at a heavy price, but with the easy availability of home loans the purchase becomes a little easier.

Ø       DDA Flats for sale in Dwarka 

It’s not just CGHS which has constructed apartments in Dwarka, but DDA (Delhi Development Authority) also shares the responsibility of adding apartments in this planned sub city. DDA reportedly has constructed around 40,000 buildings with LIG, MIG and HIG flats. Dwarka DDA flats have a new look as opposite to the grey exteriors. The DDA apartments are distributed over stories and don a colorful look. These flats definitely are in a sharp contrast to the existing stereotyped image of DDA flats. Due to the location factor and the design the DDA flats in Dwarka are expensive than the earliest ones developed in Janakpuri and Vikaspuri.

Dwarka: Location Advantage

Ø       Well-connected road network

Ø       Metro connectivity to Gurgaon, Noida, Anand Vihar, CP, Pragati Maidan and Railway Station

Ø       Airport Express line (special metro) will connect Dwarka to the IGI (Indira Gandhi InternationalAirport)

Ø       Major markets: Sector 6 &10, Ashirwad Chowk: Junction of Sector 4 & 5

Ø       Shopping Complexes in Sec-22 and 23

Ø       DTC Bus (low-floor) Depot: in Sec-2 and 8

Dwarka: Upcoming Projects

Ø       Shopping Mall in Sector 14

Ø       India’s biggest Convention Center by DLF (Sec-24)

Ø       Delhi’s biggest ISBT (Inter- state- bus terminal) in Sec-23

Ø       Diplomatic enclave in Sec-26 to 29 with around 39 embassies

Ø       6 Sports Complexes, 1 already functioning (built by DDA)

Ø       5 star hotels and 7 star hotels

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Apartments and Flats in Bangalore do enough justice to their owners

Winds of change are sweeping the country and Bangalore is not left far behind.

Addressed as the “Garden City of India”, Bangalore is fast embracing an apartment culture just like the other metros. Slowly and gradually individual houses and bungalows seem to be losing their charm, more so, considering their expensive nature as compared to the plethora of facilities offered in the apartments and flats. The city is coming up with fine apartments and flats equipped with world-class facilities. Being an IT hub, there is no dearth of money for the software professionals who carry fatter salary packages and do not hitch in investing their money in a classy apartment.

The IT experts are glued to their systems most of the time and hardly find the luxury to design their own house themselves. They then depend on the ready made apartments and flats where all they need to do is hire “Packers and Movers” and get all their household stuff shifted in a day—as easy as that! One of the prime reasons why apartments or flats are gaining ground in Bangalore is the assurance of safety of individuals as well as the property. As compared to the individual house or bungalow, an apartment is much safer especially for people who are frequent travelers. They can lock up their flats and go ahead on a trip for professional or leisure purpose with a carefree attitude while bungalow/ individual house owners remain a bit worried about their property being robbed. Security is not the only advantage as there are several other amenities offered in an apartment/ flat. Where should we start from …well, it’s the round the clock facilities of water and power, parking, elevators, intercoms, stunning interiors, modular kitchens, fully furnished accommodations, swimming pool, gym, clubhouse, playgrounds, community hall and so on. Trust me the list can go on and on. The more you splurge out the more you get. Even of you don’t want to be counted as an extravagant soul, you can opt for the most affordable and cost-efficient apartment. There is one for all! Also, each apartment or society has its own association which takes charge of maintenance and you just need to pay for it without running around to get things fixed. Today, everybody seeks comfort even if it comes at a heavy price.

As apartments and flats come up with astonishing designing and furnishing ideas they break the established and traditional norms of housing complexes. Apartment culture has brought a revolution in the lifestyle of people. Apartment culture is a recent trend as earlier people felt proud in owning a bungalow or an individual house, which they could design as per their own personal desires. BDA (Bangalore Development Authority) has an interesting role in developing residential townships which have earned a more popular term for themselves today the so called “apartments and flats”. 

Before independence, several extensions came up in the outskirts of Bangalore, namely in Chamarajpet, Malleswaram, Seshadripuram and many more. The fast growth caught the attention of the Bangalore government to make efforts for an organized growth of the city. It was then that the government founded the City Improvement Trust Board in 1945. CITB developed the renowned extensions of Bangalore like Rajajinagar, Jayanagar, Palace Upper Orchard, Indira Nagar and Koramangala. It also assisted several residential schemes in a systematic manner. CITB granted 50 percent rebate to the weaker sections of the society who wanted to purchase a house. By the year 1971, Bangalore had earned the repute of being the seventh largest city of India with the population touching the figure of 16 lakhs. Between the years 1971-1981 the population crossed nearly the 3 million mark. BDA was found on January 6, 1976. It was a culmination of functions of the City planning Authority and CITB (City Improvement Trust Board). To meet the rising demands of residential properties due to the growing population, BDA developed several housing schemes by identifying the land which could be used for such projects. Its main purpose was to build a well-planned city with persistent growth. Some of the townships built by BDA in the initial stages were that of Whitefield, Bidadi, Magadi and on Sarjapur Road. From the day of its inception, BDA has provided at least 76,000 sites for building residential projects on a mass scale. BDA also focused on providing shelter to the neglected sections of the society. The tradition of uplifting the economically weaker sections have continued till date with BDA allotting a fixed percentage of discount on the property price to the SC/ ST sections, backward classes, Defence, State and Central government employees, physically challenged, General categories and science, art and sports experts.

The government residential townships were hailed by the masses of Bangalore and several private builders also chipped in to build some of the best known apartments and flats in Bangalore. Thus it is crystal clear that apartments and flats make a stronger and affordable appeal to the masses as compared to the expensive and not-so-safe bungalows and independent houses. The working class has found a new mantra of security in an apartment or flat with a 24-hour vigilance to guard their riches and the property. The apartment culture proves economical, ensures maximum utilization of space and provides ultimate comfort. The sole and foremost purpose of a home is to provide security to its dweller and apartments and flats do enough justice to their owners in this regard!

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Agricultural Land—A Source of Profitable Returns!

If the records for the last five years are checked, it is concluded that the investment in agricultural land is on a rise. Individuals, enterprises and different countries are all actively participating in the purchase of agricultural land. The increased investment rate in the agricultural land is due to many reasons. Scarcity of land is responsible for an upsurge in the demand of land. Thus, the gap between demand and supply of land is rapidly widening. In such a scenario, investment in agricultural land promises outstanding returns.

People looking for long-term profitable investment must invest in an agricultural piece of land. At present there are multiple investment options available which are accompanied with an enhancement of agricultural production. The measures adopted to increase the agricultural produce are tailored as per the varying local conditions, i.e. production type, financial aid, capital sources, infrastructure, etc.

Talking about India, it is predicted that the country is bound to see a huge mismatch in the demand and supply of land in the near future. The rising population will add to the woes of India as the demand for both an urban infrastructure and high-quality food will also soar high with higher income. Thus, a simultaneous land and food scarcity challenge is likely to turn up soon. This will result in an uneven increase in the prices of land and also pave way for higher- than-normal annual returns from farming. Where on one hand the corporates are more interested in looking overseas there on the other hand the individuals plan to reap higher benefits within India. Contract farming is in vogue and so are the professional farm managers, these two elements when together fetch gains from both the capital appreciation and the annual returns from the produce. A twin-delight, investing into agricultural land proves to be an excellent asset as it usually has higher returns than the one offered by commercial or residential properties. The icing on the cake is that the capital appreciation coupled with income from farming produce is exempted from Income Tax. Investing in a farmland can churn out as much as three-four times of the return generated from any other type of real estate investment. Apart from the monetary benefits, you can simply laze in the sun lying peacefully in a hammock in your farm-house over the weekend!

The agricultural laws differ in all states and thus owning a piece of agricultural land in a particular state is subject to existing laws. In states like Gujarat and Maharashtra the ownership of agricultural land is restricted to only agriculturists, whereas states like Madhya Pradesh and Rajasthan do not have any such laws. It is always good to consult a professional lawyer for purchasing agricultural land in any state. Land acquisition in India can be a cumbersome process if the required caution is not taken. Few things that should be done are meeting the land owner, hiring a lawyer, appointing a farm management company or an individual person to take care of the farm, etc.

A noteworthy factor is that developed land gives quicker returns as compared to the undeveloped land.  It is very important to sow the right crop for better returns from the agricultural produce. Row crops like wheat, corn, barley, soy, etc. yield quick but unpredictable returns as compared to the permanent crops (apple orchard, mango orchard, etc.) that yield consistent returns after a long time. However, permanent crops bring profitable returns in the long run.

The location of the agricultural land also decides the return type, i.e. whether the returns are generated from agricultural returns or through land escalation. Lands located near ample of water resources gives significant returns from the agricultural produce whereas lands located near road or developing infrastructure experience a price escalation and brings profitable returns.

It is evident that Investing in an agricultural land is a true asset in the long run as it brings fair and profitable returns when compared to any other type of investment.

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