Property investment is one of the best investment decisions because it assures steady returns and growth potential. Though, it isn’t always straightforward. Both end-users and property investors likewise face a common dilemma when it comes to investing in either land or flat. While both are reliable property investment options, they each come with their own benefits and drawbacks.
Looking into the pros and cons of both will benefit you arrive at a definitive stand as an investor. Here are a few points that will assist you to decide which is a better property investment option for you.
- Liquidity – Land will always be in demand. The value of land appreciates typically with the passage of time.
- Customisation – This is an added profit. As the landowner, you have the liberty to play around with designs, and the flexibility to build your home according to your own preferences.
- No age limit – As land becomes limited, the supply-and-demand equation works in its favour. Additionally, the land is not affected by age; a building will decrease in value with time, but the land will not be affected this way.
- Fewer hassles – There are no maintenance costs included when you purchase land, and thus, you cut down on expense. Once payment is made, the property buyer does not have any have financial obligations, as plots are usually delivered on time.
- Value appreciation – In most Indian metros today, the availability of space is a rising issue. Because of this, the value of land is supposed to appreciate every passing year. As the landowner, you have the flexibility to build as per your future requirements. This supports the cost of land and property increase.
- More perks – Over the years, real estate developers have begun allowing more than just land, they understand their client’s requirement and many real estate developers are now offering lands in gated communities with required infrastructure like paved roads, street lights, storm water drain and parks etc.
Pros of Investing in Flat/Apartment
- Ready conveniences – Having an apartment is very usually a lifestyle choice for many. The main advantage of opting for an apartment or flat is the collection of facilities and comforts that come along with it. All of these features can aid you to lead a comfortable and hassle-free life.
- Bank assistance – Obtaining a bank loan is extremely easy if one is looking to buy a flat. When opting for a home loan, homebuyers can get up to 85% of funding and the maximum loan tenure for an apartment can go up to 30 years. Furthermore, there are various tax benefits on home loans which can assist you to save money.
- A regular source of income – You will immediately receive a secondary income in the form of rent if you plan on renting out your property. The current real estate laws even prevent the chances of litigation from your rental occupants.
- Return on Investments – Due to increase in migration of workforce from other cities and metros, a flat in a hotspot like OMR will always have higher rental yields, which gives you a permanent second income and can help you become financially independent.
- Appreciation – If you plan on buying a flat, do so only after assessing the growth potential of a particular locality. Your flat will accrue a greater ROI depending on the location it is in.
Making the final decision
Buying land or a plot means you are the sovereign owner and have full control over the kind of property you want to construct, depending on your own personal requirements and constraints. However, property investment has the clear advantage in many aspects. A flat is a pre-designed, multi-storeyed construction. Buying an apartment will benefit you in terms of safety and security, location and accessibility.
In terms of resale value, a flat or apartment would prove more beneficial than land as its value raises with an increasing demand. If a secondary income is what you seek, then opting for property investment in an apartment is the best choice.