With the government’s new initiatives in the real estate
sector, buyers have a plethora of apartment choices. However, owning a piece of
land still has an unrivalled prestige value. So, when it comes time to relocate
or invest for a more secure financial future, many of us are caught between two
options. Here we compiled this helpful list that will help you choose wisely!
Investment Factor
One of the primary disparities between a plot & an
apartment is that you’ll have to live in your very own house right from the
moment you acquire an apartment & you’ll save a lot of money on your rent.
Whereas a plot allows you to create your own customized home, until then you
won’t be allowed to live there & you’ll have to pay rent even if you invest
in the plot. Also, when you buy an apartment, you can use it as an investment
vehicle as you rent it to someone, but in the case of a plot, it won’t be
possible. So, compared to plots, an apartment is a smarter investment choice.
The Hassle Aspect
An apartment is actually a comprehensive package for standard
living; you can select one that would be ready to move into where it contains
all the things that an apartment life demands. Hence, you won’t be worried
about any further headaches or strain. A plot that you wish to build on is just
land & you have to build it from scratch & you’ll now have to deal with
the troubles & groundwork of building the structure, obtaining legal
permission, & ultimately upgrading it with lifestyle elements to keep it
livable.
Financial Assistance
Finding financial help for the purchase of a plot is more
difficult than for the purchase of an apartment, since financial companies are
hesitant to lend money for the purchase of a plot. So, as a result, there are
limited alternatives for purchasing landed property, as banks often do not
provide financing for the purchase of a land/plot, but it is effortless to get
a bank mortgage for the purchase of an apartment.
Compliance Aspect
In general, the plot is considerably more likely to get
entangled in legal complications & litigation. So, when you purchase a
plot, conduct thorough research on any conflicts, & ensure to keep an eye
on it till you build your home on it. As in India, several issues are raised
regularly relating to illegal land capture. Although these concerns are much
reduced when purchasing an apartment when the buyer is protected by RERA &
he or she has the right to go for a petition for compensating & remedial
action, if the builder didn?t guarantee their promises. Accordingly, as a precautionary
step, today’s builders will exceed expectations to guarantee that all legal
& financial requirements are met.
Return on Investment
A plot can be acquired for the intent of constructing a new
structure to get profit, or it could be utilized for other reasons. If you plan
to acquire an apartment, only do so upon assessing the growth prospects of a
specific neighbourhood. Your apartment’s ROI will be higher depending on where
it is located. Because of the increased movement of workers from other cities,
an apartment in a desirable location will always have greater rental yields,
providing you with a monthly second income & assisting you in being
financially secure.
Tax Treatment
The tax treatment of plots & apartments differs. As in
the case of an apartment, first-time homeowners are eligible for specific tax
breaks. The tax deduction for interest on plots is allowed only in the year
where construction is finished. Interest accumulated during project
construction can be reclaimed as a deduction across 5 years in equal payments
beginning with the year the work is finished, resulting in a delay in tax
advantages. Holding a plot as an investment is not tax-deductible, but you can
request a deduction for the interest given. Conversely, if the plot remains
barren, it might not be eligible for a tax break.
Value Appreciation
The plot has comparatively better value appreciation than an
apartment. This is mostly due to the scarcity of plots on the market. The value
of a property is determined by its location & proximity to major infrastructure
developments. However, the land market is a cobweb, so when you buy, you must
be vigilant. So the safest choice for individual investors is to buy
apartments; keep it simple & get your 20 or 25% appreciation because the
land is all about where you want to be on the risk-reward spectrum. Also, make
sure to select an apartment from a reliable builder with a good location &
surrounding infrastructure to increase the value of it.
Scope of Resale
Apartments are easier to sell as there is always a huge demand.
Furthermore, apartments provide a variety of facilities as well as security
features. The attraction of plots is that the owner owns the land & can
create a new house to optimize returns. But when you plan to sell it, it may
not be fundamentally enticing to a possible buyer market. He/she may then
either invest more in repairing it or entirely demolish it to create a new one.
This might have a reasonable impact on the price of the house. However, in the
case of apartments, such an issue does not exist as they?re available with a
fixed structure (part of the structure) &, thus, more convenient to sell at
the value without extensive negotiations.
After considering your wants, financial status, & commitments,
take the best alternative. Having a plot implies that you should be careful
with some choices. However, the benefits for apartments may be far greater than
for plots. Because everything is already in place, you may begin earning
profits on the first day. It is critical to seek apartment properties in
affluent locations and, of course, from a reliable builder, so that you’d have
a good chance of making a regular return.
If you are looking for your dream apartment in the heart of Kochi,
Thrissur, Thiruvananthapuram or even in Kozhikode, then do visit Varma Homes,
one of the top ranking and most trusted builders in Kerala. We strive to
enhance top-notch quality construction materials to create apartments that will
stand the test of time. With us, you shall not be disappointed! You will get
the guarantee of quality residential options that provide not just great living
spaces but also a lot of happiness.
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