Cecelia Ahern, an Irish writer, once said, “Home isn’t a place, it’s a feeling”. In fact, it’s a concoction of many a feeling – of love, family, ownership, pride and the list goes on.
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However, it’s not an easy decision though it’s on everyone’s wish list. Because, we need to find answers to many difficult questions – When to buy, where to buy, what to buy and how to buy. After all, the year 2021 has seen the severity of the COVID-19 pandemic as well as attracted offers and discounts from builders and plot sellers. Add to that several government initiatives that have expanded access to affordable housing. When it comes to the question of buying land vs buying an apartment in 2023, many of us get stuck – whether to buy a ready-to-move-in apartment or a piece of land that you can do bespoke construction on.
One way to find the answer is to go back to the ‘feeling’ we spoke about sometime back. Ask yourself what you really want and why? Let’s try and decode it a bit, going by logic and the ‘feeling’.
Apartment VS Plot: What are the Key Differences?
Apartment investment:
- Limited customisation options
- Apartments need upkeep as they age, and the building’s value decreases with time.
- Construction quality could suffer due to incompetent builders or rushed work.
- Apartments have size restrictions and cannot be built to house a large number of people.
- An apartment’s ownership may change after several months or even years.
Plot Investment:
- freedom to construct whatever of one’s choosing
- Compared to apartments, land values increase faster and better.
- Any structure could be created to house a large crowd of people.
- Construction quality might be of the highest calibre and within one’s means.
- Plots are constantly available for possession, and ownership transfers are not too complicated.
Which One Easier
Of course, it’s the apartment – You just need to arrange the money for the apartment you like. No need to run around to figure out if the titles and legal documentation are in place, unlike that for a plot of land. If it’s an apartment, the developer would have done all that by default. Acts like RERA make it more secure and protect homebuyers, as all developers are required to adhere to its bylaws. If you plan to construct a house on your own, you better be ready to do a lot more legwork. You will have to find an architect, get the construction plan approved, negotiate and find the best deals for raw materials etc. All these might be worth the effort as you are going after that ‘feeling’ of building your dream home.
Cost
If you are living in a metro, the cost of buying land and then constructing a house would end up being way higher than buying an apartment. Having said that, it also depends on your budget to buy a home. A silver lining of mostly staying at home over the past year or so has been increased savings due to not travelling for vacations, or organizing lavish weddings. Higher savings than in past years means the average homebuyer has more in his pocket to go for say, a 3 BHK apartment rather than his previously planned 2 BHK apartment.
Read: The Pros, Cons, and Costs of Investing in Agricultural Land
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Amenities
These days, most of apartment complexes offer amenities like a clubhouse, swimming pool, sports facilities, landscaped gardens etc. Unless the land you purchase is part of a community or township, you should be willing to sacrifice these amenities. Another important factor to consider is the safety aspects of living in an apartment complex.
As an Investment
The type of property is not the only parameter that decides the return on real estate investments. Factors like timing, location, buying price, cost of buying, interim returns like rentals etc. are to be considered. However, it’s fact that a piece of land can appreciate faster and longer than an apartment.
Bank Assistance
The process to avail of a loan to buy land is way more tedious than that of an apartment. Most of the banks would also levy higher interest rates on loans for land. However, if you plan to construct your house within two years of purchasing the land, banks would offer loans at better interest rates. Click here to found the eligibility for your home loan.
Is Buying a Flat Good Investment? Pros And Cons Of Buying Plots and Flats
Purchasing an apartment is different from buying a piece of land. Despite the fact that both asset classes are very lucrative, there are a number of advantages and disadvantages that distinguish the two types of purchases. Here are some important benefits of purchasing a piece of property that may aid a buyer in making a decision-
- A major difference between plots and flats is that land values increase over time more than apartment values do. The main reason for this is that there is a finite amount of land available, and its suppliers cannot be increased to meet the demands of the market. Instead of losing value over time, a land plot does not deteriorate but rather increases in value. The situation with apartments, however, is completely different. Apartments lose value over time as a result of the regular maintenance and repairs that are required as they age. To some extent, appreciation is also influenced by the area’s amenities, security, infrastructure, connectivity, and other unrelated elements.
- Buying a plot provides one the freedom to design and construct a building in accordance with their individual tastes and needs. On the other hand, an apartment is a pre-built structure that is tailored to a specific group of people’s needs. There isn’t much room for customization to meet the needs of each buyer.
- A piece of land is a sign of wealth. Depending on the size of the family and its needs, any building on a piece of land can be created to house a large number of people because there are no physical restrictions. Therefore, it may also be claimed that owning a home on one’s own raises one’s standard of living.
- The process of changing ownership of an apartment could take months or even years. Plots are often constantly available for possession. As a result, a buyer wishing to invest in a piece of land will take control of it far sooner than they would with a flat.
- Additionally, delays in apartment development could occur for a variety of reasons. The builder might therefore be forced to finish their work quickly as a result of this delay. The builders, who are attempting to reduce costs while maintaining timetables, frequently damage the product’s quality in this haste. Due to time constraints and cost-cutting measures, they are unable to achieve deadlines, which has a severe impact on the buildings’ quality.
Find the Land or Home of Your Dreams with Huge Savings
With several accessible home finance options and increased savings, the time is ripe for the average Indian homebuyer to purchase land or readymade property instead of renting. Now, you take a call, buy land and construct with all the freedom to design your dream home or buy a beautiful apartment that suits your needs with NoBroker. Not only will you get to choose from premium land and apartment listings across India, you will also get to save huge by not paying any brokerage fees. Guess we have. A collective of the top starred real estate professionals across India, we understand that home isn’t a place, it’s a feeling. If you need help finding a home, just visit NoBroker.in or click below.
FAQ’s
Q1. Which involves more effort, buying land or an apartment?
Ans. Buying a plot of land and building your bespoke home involves hiring the expertise of several professionals including a developer, construction, architect, painters, etc. Buying a ready-to-move-in apartment saves you from the legwork.
Q2. Is it easier to possess a plot or a flat?
Ans. Possession of a flat can take time as the construction and due regulatory approvals are involved. Whereas, the possession of a residential plot is faster.
Q3. Which asset appreciated in value faster, an apartment or land?
Ans. A piece of land can appreciate faster and longer than an apartment.
Q4. Which is safer, an apartment or a home on land?
Ans. While you have the pride of ownership of land, a ready-made apartment with community amenities such as gyms, swimming pools, maintenance staff etc. can be made part of your lifestyle faster.
Q5. Where can you have a regular income, a plot or a flat?
Ans. You will get no income on a plot unless a usable property is constructed on it. Whereas you can rent out a flat for regular income.
good explanation. thank you.