Investments in land plots for construction are the most reliable option for investing money.
Such land does not lose its consumer properties, and with the development of the territory’s infrastructure, it increases in price .
The most popular options for locating private construction projects are plots with VRI “individual housing construction” and “LPH”.
Let's consider why they are so remarkable, what common features they have in common, and how they differ.
Legislation
In 2021, all land in the Russian Federation has a certain status. It follows from it what types of activities are permissible to engage in on the site.
In Art. 7 of the RF Land Code (Federal Law No. 136, adopted in 2001) specifies seven categories of Russian lands. The division is based on the principle of intended purpose. Private household plots are allowed to operate on lands related to:
- having agricultural purposes;
- populated areas.
Individual housing construction - only within the boundaries of a populated area.
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However, the status of a site is determined not only by the category of land specified in the federal law. In the cadastral documentation that is issued to the owner of the plot, there is certainly a type of permitted use (AUR). They number in the hundreds. Art. 8 of the Land Code of the Russian Federation allows, in certain cases, changing the category and, accordingly, the VRI.
The main regulatory act regulating the management of individual housing construction is the Civil Code of the Russian Federation. Federal Law No. 190 was adopted in 2004.
For the management of private household plots, the relevant regulatory act is Federal Law No. 112 of 2003.
Differences from DNP
In addition to the forms described above, which characterize the direction of use of plots of land, there are also:
- gardening non-profit partnerships or SNTs;
- houses built on land under the auspices of a dacha non-profit partnership or DNP.
This type of DNP differs from those mentioned above in that the constructed facility is not subject to mandatory state registration. However, you are allowed to register there. The next difference is the right to mortgage housing with any credit institution. Another advantage of the DNP is the possibility of building housing without coordinating it with architectural and other regulatory institutions.
Individual housing construction lands
When you receive ownership of a plot of land, you need to understand its intended purpose and understand what is hidden behind it. Private household plots and individual housing construction, what the difference can be seen and how significantly this will affect the further disposal of the plot and its use.
Let’s look separately at what benefits owners can derive from different plots and what restrictions such land ownership is associated with.
Advantages of individual housing construction land
When studying the pros and cons of providing a plot for individual housing construction, we first of all proceed from the fact that it is included in the lands of the settlements. This means that infrastructure already exists or is being planned to provide a certain level of livability and comfort. The owner of the site can confidently count on the use of the following built without his direct participation:
- highways;
- electricity and water supply.
The owner will only bear the relatively small costs of connecting to existing utility networks and supply systems.
The size of land ownership is not limited. You can plant fruit trees, berry bushes to your heart’s content, plant flower beds, arrange a swimming pool, etc.
Disadvantages of individual housing construction land
When purchasing a plot of land for individual housing construction, you have to overpay quite significantly when compared with lands of other categories of use. This is the payment for access to the benefits of civilization in the form of infrastructure, which were created without the direct participation of a newly minted landowner.
Although this disadvantage is usually mentioned as the most significant, we must not forget what we have to pay for. If you calculate how much it will cost to independently achieve the level of improvement and comfort initially inherent in the plot allocated for individual housing construction, then the costs will be more significant. Let us add to this that it will not be possible to reach the usual level of improvement any time soon.
Therefore, a higher cost should be considered a disadvantage, it seems, with a considerable degree of convention.
The real restrictions are related to the development of the site for individual housing construction. It is regulated by state standards and requires obtaining permits. Obtaining each permit will require time (on average, about two months) and incur financial expenses.
Construction is limited to:
- construction of three-story buildings;
- the need to begin construction within three years and complete it within a decade, otherwise the plot must be returned as not used for its intended purpose;
- maintaining a five-meter distance from the road and a six-meter distance from the wall of a neighbor’s house.
The disadvantages (with a certain degree of convention) also include the need to comply with the ban on keeping livestock.
You will also have to pay more in land tax.
Form of ownership from the point of view of legal norms
When registering plots, it is expected that some documentation will be issued for the land of individual housing construction and private ownership. The current legislation determines what the differences are in the design, as well as in the content of the papers establishing the rights of the owner.
In most regions of our country, every citizen can count on receiving a one-time plot of land for use. Registration of its ownership becomes possible if a private house is built within its boundaries. The use of such lands for profit is not permitted. This means that in this case it will not be possible to register ownership.
Documents confirming ownership are drawn up on the basis of documents, the main one being the cadastral passport. In addition, if a building is being erected on a plot of land intended for a summer house or garden, then it must be included in the declaration. Registration can be carried out on the basis of Art. 25 Federal Law No. 122.
Land plots
When you offer a plot of land for use, it doesn’t hurt to understand what private household plots and individual housing construction land are, what the difference is, whether and how significantly it will affect the life of the owner.
Advantages of private household plots land
Obtaining a plot for personal farming is associated with a number of advantages:
- low cost;
- low land tax rate;
- location in a suburban area, which, as a rule, means better ecology;
- the optional construction of residential buildings;
- the ability to carry out development without obtaining permits and project approval;
- receiving income from the sale of independently produced agricultural products, which is not associated with the need to register as an individual entrepreneur.
A very significant advantage is acquired when the site is located within the building boundaries, where roads and utility networks are laid. Then, with the permission of the local municipality, you can build and enjoy the benefits of the already developed infrastructure. The owner of such a plot will be able to combine the advantages inherent in both individual housing construction and private plots, eliminating the inherent disadvantages of the first category of land.
Disadvantages of private household plots land
When using the lands of private household plots, you have to adhere to certain obligations:
- do not forget that they are allocated for a specific purpose. Therefore, it is necessary to engage in agricultural production;
- carry out development, taking into account the location of the site, within the boundaries of the populated area or outside it;
- not engage in commercial activities;
- do not use hired labor.
The greatest disadvantages of land allotment may be:
- lack of the usual level of amenities and comfort;
- inability to register using a new address.
But the listed disadvantages will appear only in the case when the land is obtained outside populated areas with a relatively developed infrastructure. The main problem is the lack of roads or the lack of more or less convenient access roads.
You can cope with the remoteness of power lines and the lack of water supply and drainage on your own. But this will require certain additional costs.
Basic Concepts
The abbreviation denotes the classification of territories of land plots that are located in the Russian Federation. The leading role in this case is given to:
- plots of individual housing construction intended for the location of residential buildings,
- territories oriented for agricultural activities (LPH).
To understand what private household plots are, it is important to remember the main purpose of these plots. Such spaces are provided to citizens so that they can grow food and non-food plants and livestock. Moreover, this area has the following features:
- cannot be used for the purpose of acquiring personal dividends,
- products obtained as a result of use can only be used for personal needs.
In turn, plots of individual housing construction, the main purpose of which is the placement of residential facilities , can only be used for the specified purpose.
Types of plots
Differences between individual housing construction and private household plots lands
When you need to figure out how a plot for individual housing construction differs from private plots, then for comparison you need to select the most significant parameters. A special comparison table using parameters can serve as a help.
Comparative table of the advantages of land plots allocated for individual housing construction and private plots.
| Options for comparing land plots | For individual housing construction | Under private plots |
| Land category | Allocated on the lands of populated areas. | Allocated to agricultural lands or populated areas. |
| Square | Limited by interests and purchasing power. | Up to 0.5 ha. By decision of local authorities, this limit can be raised to 2.5 hectares. |
| Residential development | It must begin within the first three years and end within 10 years. It is carried out with the permission of the local administration, according to the project and adhering to the requirements of state standards. | Allowed only on a personal plot. |
| Cadastral value | Above, which is due to the presence of developed infrastructure | Several times lower, since sometimes it is impossible to connect communication lines. |
| Land tax | Higher. | Below. |
| Land cost | Higher due to location within building boundaries. | Lower due to the distance from large populated areas and underdeveloped infrastructure. |
| Infrastructure | It is being built or planned at the expense of budget funds. | Connection is possible, as a rule, only for a personal plot. The owner has to provide amenities and communications. |
| Local registration | Acceptable after commissioning of a residential building. | Possible when living in a comfortable house with communications, built on a personal plot, upon receipt of permission. |
| Land use | For mandatory housing construction and for growing plants. | Non-commercial production of agricultural products. The construction of residential and other buildings on a personal plot is at the discretion of the owner; the construction of fundamental buildings outside the boundaries of populated areas is unacceptable. |
With the help of a tool such as a comparison table, the differences are more clearly presented and it is easier to decide which option is more profitable to choose.
Change of VRI
Most often, there is a need to change the VRI from private household plots to individual construction. This is due to the fact that individual housing construction provides the owner with many more opportunities when arranging the plot.
People resort to changing the type of permitted use from individual housing construction to private plots if they want to organize a mini-farm or reduce the burden of the tax burden on the family.
Changing the VRI is possible for areas related to settlement lands.
The procedure is carried out by municipal authorities and takes one and a half months . The applicant must attach the following documents to the application:
- title documents for the land plot;
- cadastral passport for the land and real estate located on it;
- written confirmation of the consent of the co-owners of the land, as well as the owners of neighboring plots.
The body considering the application has the right to request other documents listed in the administrative regulations for the provision of the relevant municipal service.
Read more about changing the land VRI in the feature article.
Which is better: private household plots or individual housing construction
Everyone who is about to receive a plot of land must weigh what is best for him. Several factors influence the choice:
- for which a plot of land is mainly required in order to live permanently, come from time to time to relax, or seriously run a subsidiary farm;
- how big is the family and what are its needs;
- what financial resources the future landowner has, and what funds he expects to attract in the future.
A family that needs a plot to settle and register will prefer a plot for individual housing construction. Depending on how urgently the settlement is planned, the choice is made in favor of an area with already developed infrastructure.
If there is an interest in the production of agricultural products, the choice in favor of a plot for private plots is obvious. Fortunately, getting it within the boundaries of a landscaped building allows us to solve two main problems almost simultaneously:
- acquire your own comfortable housing;
- engage in livestock breeding and/or crop production.
Without having significant funds at your disposal, it is rational to find a personal plot with convenient access roads, to which it is easy to connect utilities.
Useful video
As part of a television information program broadcast in the Novosibirsk region, an episode was presented that explains how the provision of land plots for residential development differs. It is separately identified to whom plots for individual housing construction can be provided free of charge.
A specialist from a Sochi real estate agency took upon himself the task, in a three-minute video, to explain in great detail the differences between private household plots and individual housing construction. For plots of private household plots, an important circumstance is that they are intended for personal or field use.
