In prime cities, though apartment culture has outgrown the residential market, people are still confused when it comes to real estate investment between flat and plot. To make excellent decisions, one needs to take many aspects like appreciation, the value of the building, monetary help, and financial gain.
One of the eminent reasons to consider is to check what you would take out from your investment, like sound appreciation over time and regular returns.
Let's list down a few pros and cons of investing in a plot or apartment.
Smart Investment Decisions:
If you are looking to buy a flat, you can be equipped to do the same by capitalizing on your savings, applying for home loans, etc. However, one of the main benefits between flat and plot is that you get to stay in your own residence from the beginning stages itself.
Although land can be purchased with home loans, it may appear more expensive than purchasing an apartment of the same size. A plot of land allows you to construct your own home. You won't be allowed to live in one until then, and you'll still have to pay rent despite your land investment.
The cost of plots in Electronic City and other metro centers is significantly higher than the cost of a flat. Land can be purchased in Tier-II cities for a lower price, and you may be able to get a good share of the plot. If you want to invest in a flat, you must pay a set sum according to the agreement, and the builder is accountable for it. It's not the same if you buy land, because converting a plot into a residential area necessitates the approval and clearance of the local government.
Let take an example of a few plots in Electronic City.
(a) The Lake View Address Plots:
The plot is priced at around 45 to 94 Lakhs which can be considered a fair real estate investment decision. An expansive land area of 40 acres is perfectly apt for having options to craft your own home. With around 330 residential spaces, you can have a good selection of spaces for your homes.
(b) Mahaveer Platinum:
It is an affordable plotted development that sprawls over a massive 122 acres of land with classy residential spaces of 1752 units. With an extension of 1200-2400 square feet area, the residents here can enjoy spacious environments and relish a fascinating time.
Best resale value:
The above-mentioned plots in Electronic City offer good resale value for the home-buyers.
Apartments are known to attract a wide range of amenities. The resale value feature tends to attract new-aged people as they acquire worldly comforts at a reasonable price.
The property's surroundings largely determine the cost of purchasing an apartment in comparison to a plot. Apartments have a lower price appreciation than plots due to the depreciation of the structure over time.
When buying land, buyers can become the single or part-owner of the property. They can also have the flexibility to build their home as they wish, without worrying about other inhabitants' permissions. An affluent buyer may be interested in purchasing land as an investment, building an apartment, and then selling the individual units.
When you build a house, you do so according to your preferences and style, which is unlikely to be appealing to a potential emptor if you decide to sell it. He can then decide whether to invest more money in upgrading it or demolish it and build a new one.
To conclude, both apartments and land have their advantages and disadvantages. It all comes down to personal preference when it comes to determining the investment difference between a plot and a flat and which one is best for them.
You'd have to be cautious while investing in a plot. However, the benefits for plots may be far greater. And you'd have to make do with the construction standard in the end. On the other hand, Flats are hassle-free because everything is provided, and you may begin earning right away.