Things to Know When You Buy Land in Your 20s, 30s and 40s

Real estate as an investment is viewed differently by people from different age groups. The urgency to own a piece of real estate typically increases among Indian investors with age. However, a global survey conducted by CBRE reveals that young Indians are keener than the rest of the globe when it comes to real estate as an investment.

The survey showed that 44% of young Indians wish to buy a property in the next two years. With nearly 24% of the population in the 20-50-year age group, investing at a young age has a strong influence on the Indian economy. Let us find out how people in these age groups should approach an investment in land.

The Early Birds

At nearly 97%, the labour force participation among 25-29-year-old men is at par with any other active age group in the country. However, entry into the land market poses a challenge for the new jobbers.

Key considerations for investing in property for beginners include –

• Focus on identifying entry-level options that hold future promise. For instance, Hoskote for Bangaloreans, Wagholi for Punekars, and Wahal for Mumbaikars are budget options that are close to the respective city limits.
• Invest in areas that are tipped for future infrastructural growth or are in the vicinity of a growing city. In 2024, tier II/III cities accounted for 44% of land acquisition for real estate projects.
• These young investors must view land as a long-term investment to enjoy its full growth potential.
• The investor must carry out proper due diligence and be prepared for the tying down of liquidity.

Getting Ambitious

Urban land buyers in their thirties generally achieve stability in their finances. Land becomes instrumental in their portfolio diversification strategies. It can also open up a secondary income, particularly if they are aiming for their second home.

As a result, their key considerations will be –

• Land plots with long-term utility will hold more appeal compared to affordability. Such utility often lies in convenient access to amenities or rental prospects.
• Fast-growing townships or infrastructural corridors with upside potential are probable target areas.
• While the investment can be held for 10+ years, the scope of leasing and selling must be known beforehand.
• Just like your 20s, you shouldn’t block your capital when you buy land in your 30s. Therefore, financing options should be considered.

For the “Here and Now”

By the time an investor hits 40, the land investment becomes more relevant to their existing finances. Investment at this age should be –

• Focused on the intergenerational value of the investment and its legacy value.
• Return on investment becomes vital, which is why land investment in well-developed hubs becomes more desirable.
• This also solves the long-term liquidity needs as the investment is in a more vibrant and busy market.
• Land investment should now be backed by a clear path on how to build wealth, be it through rent or further developments.

The Age Factor

The investor’s age has a clear influence on the nature of investment. When you start with a land investment in your 20s, your income level and liquidity will get prioritised over the current readiness of the plot. As age progresses, the focus shifts to more lucrative plots that have a ready market and income potential.

A Smart Investment

There is no best age to invest in property. However, to ensure it is a smart investment, some of the considerations must remain the same at all ages. The investor must always weigh the income stability and liquidity constraints while investing. The purchase must be made after adequate due diligence. Besides, the purpose of and expectation from the investment must definitely be introspected.