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Investments made in low value properties can be classified into the following categories

1.Land - agricultural or non agricultural land. This is often the preferred option for investors, as land rates are very low in many areas. Also unlike built up properties, the owner does not have to pay a number of expenses like property taxes and maintenance charges. However, there is a risk that there may be encroachment of the vacant land, if the owner is away from the property for a long time. Also building a house can be a time consuming process, as permissions are needed from a number of authorities.
2. Flats, houses or villas are a preferred option for most property investors, who lack the time and energy to build a new house. However, this can be very expensive, compared to direct construction of house on the land as the builder's margins will be very high. Also maintenance charges will have to be paid on a regular basis, which add to the cost of ownership of the property.