In case you are planning to make an investment, both plot and flat are good options for you. However, you would be keen to know which one of these is a better investment? Both these types of investments come with certain pros and cons. If you are willing to buy a second home, you may be in state of dilemma, whether you invest in land or apartment. In this article, you will get a detailed guideline regarding where to invest and in what circumstances.
When you buy a land, you can build a house on it as per your preferences. You are free to choose the design of the house, its architectural style and other specifications. However, when you buy an apartment, you may be facing certain constraints regarding your personal choice. These are multi-floored constructions, with less scope of customization. You will not have the freedom to get the rooms shaped according to your preferences. However, apartments come with more security and amenities, in comparison to the plots in general. Besides, most of the apartments are being developed close to the commercial zones of the big cities. The residents will enjoy more accessibility and connectivity to the important areas when they get a flat.
The cost of plots and apartments depend on a number of factors. These include the size, available space, locality and other aspects. You should keep the value appreciation factor in mind, when you make your purchase. Today, the available space in the big cities is quickly vanishing. Therefore, you should ensure that you have flexible options when you build your home. In course of time, the value of property in the key cities is expected to escalate. Therefore, investing in land is a good option for homeowners. Besides, a flat comes with a limited span and the value of the apartments has a diminishing effect. After a particular course of time, you will face stagnancy in the growth rate of the prices of the apartments. Besides, the lack of flexibility may further lower the prices. In case you get your own plot, you can remodel your home and incorporate certain modifications customizing it for the next buyer. This makes it easier to sell off plots, as compared to homes.
Coming to the risk factor associated with both plots and land, you should remember that more litigation factors are associated with land. On the other hand, purchasing a flat is less likely to bring legal issues. Once you purchase a land and a legal issue crops up, you will find it difficult to resolve the problem. Most of the time, the homeowners face problems like delay in possession by the developer. Besides, the quality of work often suffers a compromise. Besides, you may find it difficult to get the construction completed within the deadline.
In terms of assistance from the bank, you can get a lot of support, particularly after government policies on the availability of loans. Banks do not provide much assistance when you buy a plot. Therefore, you may have to make the entire arrangement yourself, when you make this purchase. Bank loans come easy when you buy a flat.
Considering these aspects, it is wise to buy a flat rather than a plot.
