For those who live in large cities, buying flats is easier than for those who reside in small towns. They can also choose land at very affordable prices. However, building your own home isn't easy.
This is both a financial and legal challenge. Many real estate companies are building multi-story apartments in Tier-II cities throughout the country. This puts buyers in a quandary about whether they should invest in land or a flat. Here are some points to help you decide:
Loans: It is important to note that although many banks offer loans to purchase a flat, few offer loans for plots.
Monitoring: Building your own home requires not only money, but also constant monitoring of the construction. When you purchase a plot, it is necessary to monitor construction activity. There are also chances for a project going over budget because a common man doesn't have the experience or expertise in building properties on a regular basis. A flat requires that a set amount be paid to the builder to cover the basic requirements.
Legal: Converting a plot into a residential area also requires permissions from the civic authorities. You would have to obtain these permissions and clearances from the civic bodies if you want to build your home on your plot. This is not the case with flats. Narasimhan says that this is time-consuming. Price: You can build your home as you like it, but it may not appeal to someone looking to buy it. The buyer will have to decide whether to renovate the property or tear it down completely to make room for a new one. This could have a significant impact on the property's selling price. Apartments are exempt from this disadvantage because they have a fixed structure as part of a building. This makes it easier to sell the property at the market price and without any negotiation.
Resale: The resale market price is also affected by the inclusion of amenities. Flats are more expensive than independent houses, which might not have the same amenities that a housing association offers. Singh states that plots are the only option because the buyer can own the land and build a new house, or a completely new building to make profit. Narasimhan believes houses have a higher value than flats because the buyer of the house becomes the owner of the land plot on which it was built. High rise: Flats are always in high demand because they are affordable. If a plot owner plans well, he can still make a profit on his investment by building multiple floors and renting them to others. Because fewer houses are being built on plots than they used to be, the demand for them is increasing among those who can afford them. You can also make good profits by purchasing plots for investment.
Risk: It's imperative to ensure that one is not entangled in legal issues by purchasing a plot of land. That the seller has all necessary documents and deeds to sell the land. There is also no civil or criminal dispute. Many frauds involve buyers being duped into purchasing government-owned land or plots that are subject to legal scrutiny. Singh says that this is not usually the case when buying a flat. The necessary permits are required by the municipal authorities. A builder does not construct or sell the property without doing due diligence in most cases."
Safety: Security is the other factor. Housing societies are well-guarded, guarded around the clock, have state-of the-art security systems, and there are many families nearby. This means that the likelihood of anything untoward happening to them is low. Independent living means that you can invest in your security. Capital value: After analyzing your financial capabilities and liabilities, you can choose the best option. A plot in an area that will appreciate in the future is a good option if you're only looking to invest your money for a few more years. If you want regular returns, however, you might consider investing in an apartment.
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