Flats vs. Plots
Not long ago, a man’s worth was measured by whether he had his own home on his own land or not. Today, apartments or flats are the most popular choice for new-age nuclear families. They are available for all budgets, are easy to maintain, and have a wealth of facilities for all members of the family. let’s check out some Pros and Cons of investing in flats vs. plots in india.
Investing in Flats or Plots
The communal culture of living in compact spaces has taken over the residential market in major cities in India, but people, especially the elderly, still cherish the desire to buy a property and build their dream home on it. Several important aspects such as construction cost, appreciation, financial assistance, and income need to be evaluated before making any major investment decision.
Buying an independent plot means a sovereign decision to build a house according to the taste and budget of each one. Therefore, the houses built are of different shapes and sizes that seem messy and do not seem attractive or exciting enough.
On the other hand, a story is a redesigned multi-story construction that gives a certain uniformity and symmetry to the entire property and makes it aesthetically pleasing. The property has enough space for designated areas and greenery, in addition to the many available amenities that make apartment living a pleasant experience.
Flats vs. Plots from a Residential Perspective
Pros of Plots:
Flexibility: The plot gives the owner the flexibility to build his house according to his lifestyle and budget.
Age of the land: Land is always in high demand due to its scarcity and high appreciation value, which is because the land does not depreciate.
Less Hassle: Buyer has no financial obligations, like maintenance fees, once payment is made. There are no recurring costs and there is no interference from anyone in plot-related matters.
Delivery: The parcels are usually ready for your possession. If the choice of the parcel is part of a municipality, it is likely that one will seize the parcel.
ROI: A parcel is expected to appreciate exponentially due to the disappearance of space availability in cities these days. The flexibility of the option to build to future requirements helps the cost of ownership to rise very quickly. Opt for 2 BHK flats in Jagatpura Jaipur.
Cons of Plots:
Litigation Issues: Parcels have a higher risk of litigation. If the buyer does not set a boundary around one’s property or does not visit it frequently, there is a possibility that it will be illegally seized by invaders or even the land mafia. Or worse, it could already be someone else’s land or it could be agricultural land.
Low rental income: If one plans to receive constant income in the short term, the flats would be a better option, since the plots generate very low income in the short term. One can get the benefits of buying a plot only in the long term under favorable market conditions. So, buy 2 or 3 BHK flats in Jagatpura Jaipur.
Financial Assistance: It is difficult to obtain financial assistance to purchase land, as financial institutions tend to avoid making loans for the purchase of land. Buying a parcel for a first time buyer can be a challenging task and it is recommended that one have financial backing for the initial investment and not rely solely on banks and NBFCs for financial assistance.
Taxes: The tax benefits associated with the purchase of a plot are subjective upon completion of the construction of the house on the plot and the benefits are even offered only during the first year.
Due Diligence: Buying a parcel involves much more due diligence than buying a flat. Land records in India are complex and incomprehensible documents that require an expert to detect any aberrations or exceptions. Generally, land registries are the biggest obstacles in land transactions in India.
No Extra Amenities: Buying a plot means you won’t enjoy the security that a closed society offers. The facilities and amenities you get in a society cannot be matched on the same budget in a house built on a plot.
Parking: Parking is a problem on residential parcels if the parcel is in a populated area of the city and is not large enough. Today, everyone has at least one car, which means an additional space allocation.
Time Consumption: One must be ready to spend a lot of time, money, physical and mental energy in the maintenance and construction of the property.
Investment requirement: building one’s own house is a cumbersome and time-consuming process and requires constant monitoring of construction activities, from meeting with architects to ensuring the correct use of raw materials. The most common problem first-time home builders face is the tendency to stretch the budget, which can be detrimental if one has limited financial means.
Pros of Flats:
Convenience: Flats are compact, require less maintenance, and thus are perfect for nuclear working families. The key advantage of buying a flat is the array of facilities and services that come along with it for hassle-free living.
Townships are more valuable for money from an end user’s perspective because they provide various facilities like an open green area, 24/7 security, clubhouse, swimming pool, power backup, and many more. Reputed builders like Somya Buildcon have also launched niche townships that either has kid-centric homes or senior living homes which cater to the specific and distinct needs of their particular clientele.
Bank assistance: banks provide loans for the purchase of flats. A mortgage loan application can obtain financing of approximately with a maximum loan duration of up to 30 years.
Regular source of income: the apartments generate considerable income from the first day of taking possession if they are given out for rent. There is also less chance of litigation with current modern laws.
Lifestyle quotient: the value of an apartment continues to increase over time due to high demand. Apartment prices are rising at a rapid rate because independent houses do not have the additional facilities that a residential company offers. Nuclear families today prefer flats for facilities and security and it suits their lifestyle, so both the resale and rental value are higher in the case of flats. Forex. An apartment in Somya Buildcon’s Aangan project will generate more rental income than an independent house in the same location.
Taxes: When a buyer takes out a home loan to buy a flat or construction floor, the monthly repayment of the loan allows them to save taxes. The Govt. it is also extending CLSS to Rs. 2.67 lacquers.
No additional costs: only a fixed fee has to be paid to the builder for the house and one can start enjoying a healthy life.
Cons of Flat:
Ownership: You should always invest in a property built by builders with a history of on-time delivery. Property should be considered in terms of property value and not just the lowest cost per square foot.
Low flexibility: Generally, the floors are built according to a standard design that is adapted to a particular clientele. There is no option for buyers in terms of design and layout, which may discourage some buyers from wanting to customize their residence.
Interference: internal affairs related to ownership, use, and maintenance will be subject to interference from the apartment owner’s society.
Additional Costs: Maintenance costs start from the day you take over.
Handover: It can take a few months or even years to obtain possession of an apartment, depending on the stage of construction. Any property with a Certificate of Occupancy as of May 1, 2017, must be registered under the RERA of your state and comply with fair trade practices or pay heavy fines.
Floor use: Floor use cannot be modified as it requires the approval of the company that owns the floor and the municipal authority.
Buying any type of property for residential or commercial purposes depends on the time frame of the investment and the cash flow expected from the return on the investment. In a comparable location, buying flats would be cheaper than parcels. Also, rental income received from flats is usually higher compared to parcels because flats are always in high demand, whether for personal use or for rent.
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