Hyderabad: In a strategic move to enhance revenue, the Telangana government has decided to auction vacant flats and open plots across the state.
This initiative, directed by the Cabinet subcommittee on resource mobilization, aims to generate significant income by selling unoccupied flats, particularly those constructed under the Rajiv Swagruha scheme.
Details of auction plans
The meeting of cabinet subcommittee, led by Deputy Chief Minister Mallu Bhatti Vikramarka, was convened on Monday to discuss revenue-boosting measures.
During the meeting, members reviewed ongoing auctions of open plots managed by the Municipal Administration and Urban Development (MAUD) department.
With some land parcels facing legal disputes from private individuals, the deputy chief minister emphasized the need to resolve these issues promptly. He proposed forming a committee under the Special Chief Secretary of the Finance Department to expedite the resolution of such disputes.
Pros, cons of investing in flats, plots in Telangana
For potential buyers, understanding the advantages and drawbacks of investing in flats and plots in Telangana is crucial. It is necessary to analyze the options based on certain parameters.
Flexibility
One major advantage of open plots is the flexibility they offer. Buyers have the freedom to design and build their dream homes according to personal preferences, a level of control that is often limited with flats. Flats, on the other hand, come with predefined structures, offering less customization in terms of layout and design.
Appreciation rate
Open plots typically offer higher returns on investment compared to flats. Due to limited land availability, plots tend to appreciate faster, making them an attractive option for long-term investors. Conversely, flats may experience depreciation over time due to wear and tear, which could impact their resale value.
Financial assistance
When it comes to financing, there are notable differences between flats and plots in Telangana. The Loan-to-Value (LTV) ratio for open plots is usually lower than that for flats, meaning buyers may find it harder to secure financing for plots. Flats, however, often have more accessible financing options, making them easier to purchase for individuals relying on loans.
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Rental income potential
For those seeking rental income, flats are generally the better choice. Flats can generate rental returns almost immediately, while open plots do not provide income unless developed. Therefore, flats may be more suitable for investors looking to earn a steady rental income.
Upcoming auctions
The Telangana government’s auction of vacant flats and open plots provides an opportunity for potential buyers to invest in properties with diverse benefits.
By facilitating these auctions, the state not only aims to mobilize resources but also to make use of underutilized properties for economic growth.
