Most of the people in our country consider investment in property to be the safest and most profitable deal, but often the investment decision is taken only by looking at the price. Many people fall into the trap of low EMI or cheap price and think that ‘buy cheap now, sell later and make profit’. But the bitter truth is that property purchased in an illegal colony is not only not eligible for a bank loan, nor does it have any resale value, nor does it provide any kind of financial security.
Property expert Pradeep Mishra says, “Every person wants to save their hard-earned money for the future. But when this money is invested in an illegal property without proper investigation, it only leads to stress and regrets instead of realizing dreams. It has often been seen that people invest the money saved for their marriage, children’s education or even the amount saved for old age in such illegal plots. and their entire capital is ruined.”
Also read: Record investment of ₹35,000 crore in real estate, Indian investors outnumber foreigners
Social media fraud under the guise of cheap deal
Pradeep Mishra adds, “Investment related videos, reels and advertisements on social media – like ‘Plot at half price’ or ‘Buy today, sell tomorrow and make profit!’ Especially target the middle class. This class expects huge returns from limited resources. Crores of people working on financial planning invest their hard-earned money without even looking at the legal documents, just following the tempting words of some ‘trendy influencer’, due to which their entire capital gets lost. These tempting advertisements create the illusion of cheapness and push people towards illegal investments.”
Smart and safe investment path
Pradeep Mishra advises, “No investment should be made without thorough due diligence, especially when it comes to real estate. Buyers should check every aspect of the plot or apartment like RERA registration, city council approval, approval of plans and legal status of ownership.”
He warns that although the low rates of illegal colonies may sound attractive, their “real cost” could be very heavy in the future. The ultimate cost of this investment could be court cases, paying huge fines or even demolition of the property.
Before making any investment, it is necessary to check the basic points like ‘legal validity’, ‘market demand’ and ‘government security’. If your current income does not allow purchasing property, then forcefully acquiring illegal or encroached land is a wasteful move. Pradeep Mishra suggests safe investment options, “That capital can be invested in more secure and regulated schemes like bank FDs, government bonds, SIPs or gold.
Also read: Beach or mountains, these 5 cities are the hottest real estate destinations for second home.
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