Real estate is one of the best investment decisions because it guarantees steady returns and growth potential. However, it isn’t always straight forward. Both end-users and investors alike face a common dilemma when it comes to investing in either land or flat. While both are sound investment options, they each come with their own merits and demerits. Looking deeper into the pros and cons of both will help you arrive at a definitive stand as an investor. Here are a few points that will help you decide which is a better investment option for you.
Pros of investing in a plot
- Liquidity – Land will always be in demand. The value of land appreciates typically with time.
- Customisation – This is an added benefit. As the landowner, you have the liberty to play around with designs, and the flexibility to construct your home according to your personal preferences.
- No age limit – As land becomes scarcer, the supply-and-demand equation works in its favour. Additionally, land is not affected by age; a building will depreciate in value with time, but land will not be affected this way.
- Fewer hassles – There are no maintenance costs involved when you purchase land, and thus, you cut down on expenditure. Once payment is made, the 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 expected to appreciate with every passing year. As the landowner, you have the flexibility to build as per your future requirements. This helps the cost of land and property increase.
- More perks – Over the years, real estate developers have begun offering more than just land, they understand their client’s requirement and many developers are now offering lands in gated communities with required infrastructure like paved roads, street lights, storm water drain and parks etc…
Investing in Flat
- Ready conveniences – Owning an apartment is very often a lifestyle choice for many. The main advantage of opting for an apartment or flat is the array of facilities and amenities that come along with it. All of these features can help you lead a comfortable and hassle-free life.
- Bank assistance – Obtaining a bank loan is extremely easy if one is looking to buy 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 several tax benefits on home loans which can help you 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 or Guduvanchery will always have higher rental yields, which gives you a perennial second income and can help you becoming financially independent.
- Appreciation – If you plan on buying a flat, do so only after gauging the growth potential of a particular locality. Your flat will accrue a greater ROI depending on the location it is in. For example, Chennai’s OMR is a real estate hotspot and a favourite among developers and investors alike, mostly due to its connectivity and proximity to IT parks and offices. Lancor offers several attractive ready-to-move-in, on-going and completed properties in OMR and in GST Road.
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 build, depending on your own personal requirements and constraints. However, property investments have the clear edge in many aspects. A flat is a pre-designed, multi-storeyed construction. Buying an apartment will benefit you in terms of security, location and accessibility.
In terms of resale value, a flat or apartment would prove more beneficial than land as its value increases owing to an increasing demand. If a secondary income is what you seek, then opting for an apartment is the best bet.
Maximise your ROI and upgrade your lifestyle by purchasing your dream home from Lancor. We have several properties across prime locations in Chennai and surrounding suburbs. You can also read our blog on tips for first time homebuyers.