Flat or land: Which makes a good investment for people in small towns?
It has become easier to buy flats for the city dwellers than those who invest in lands in the small towns. The sensible pricing of the lands has come affordable for the small town dwellers to buy. However, building your own home is not that simple as it sounds. It is a huge process both financially and legally as well. Today, most of the builders in Chennai have developed Flats in OMR, ECR, Porur, Anna Nagar and other regions. This has put all the buyers and investors in a dilemma whether to invest in flat or land.
One of the factors in deciding is the bank loans, which several banks offer loans for flats and houses than lands or plots.
Constant monitoring of the construction process
One of the advantages of buying flats is that you don’t need a constant monitoring until the flat is ready to occupy. In contrast, lands demand a constant monitoring besides money. When you invest in plots or lands, it requires a regular monitoring until your home is built. You ought to keep an eye on the budget on whether it fits within your intended amount or it goes out of your plan. In case of flat or apartment, you get to pay a fixed amount to the developer as per the agreement which is discussed earlier.
You consume time on legal formalities if you buy flats
It requires a lot of clearances and permissions in order to convert a plot to a residential spot. The benefit of buying flats is that you don’t need to do all these things by yourself. This is the responsibility of the builder to get all these legal formalities done and keep the paperwork in handy. This is a time-consuming advantage if you invest in buying flats.
Flats are easier to sell in the future
In the event of constructing a house by your own, you construct it according to your taste and choices. This looks appealing to some potential buyers, but not for all. If you opt to sell this house in the future, it might need some renovation and repair to make it appealing again. This is not the case in flats. Flats come with an unchanging structure in the building which makes it easier to sell without any haggling period.
Resale value always increases with flats
One factor which impacts positively towards flats in choosing between flat or land is the higher resale value. Prices get higher at a faster pace in case of flats resale. Individual houses for sale may not have the same facilities, which an integrated township provides. Despite the fact that the price of flats increases higher for their amenities, it is also true that the buyer becomes the owner of the land on which the house is built.
Multiple floors and rental income
The affordable price of flats keeps it’s worth increasing time after time. However, the homeowner can still gain profits by adding multiple floors in the future. This moreover leads to gaining good rental income in case of individual houses. As there are lesser number of homes constructed on the lands, the demand is rising for those who can afford to buy them. Another thing to remember, buying plots just for the case of investment would yield healthy profits.
So, choosing between flat or land, consider your financial abilities and liabilities in deciding the best option for investment. If you are on a plan of investing just for a few years, then you could choose a plot in a good locality where you can expect great appreciation in the future. On the other hand, if you are looking for regular rental returns, then you can consider investing in buying a flat.
Also check the blog if you have a dilemma on choosing between Houses and Flats