Particularly for first-time buyers, buying a house is an important financial decision. It is crucial for home buyers to invest their hard-earned money in a secure future. Nevertheless, a good investment can yield handsome returns. A big-ticket purchase, such as buying a property, may deliver undesirable results if one makes a hasty or erroneous decision. A further dilemma for investors is deciding whether to invest in land or in an apartment to reap better returns.
Property investment pros and cons
The purchase of an apartment is different from the purchase of a plot of land. Both asset classes are highly lucrative, but they differ in several ways. The following are some key benefits of investing in a plot of land that can help a buyer make a final decision.
Buy and sell your property
Purchasing a plot of land gives one the freedom to build a structure according to his or her own preferences. The apartment, on the other hand, is pre-designed to meet the needs of a particular group of people. There is limited scope for customization as per each buyer’s needs.
Apartments appreciate more over time than land. This is primarily due to the fact that the availability of land is limited and its supply cannot be increased to meet market demands. With time, the value of a plot of land does not depreciate, instead, it increases. As opposed to apartments, which are quite the opposite. As apartments become old, they require heavy maintenance and constant repairs, which, in turn, depreciates their value over time. Appreciation, to an extent, also depends on the locality, availability of amenities, security, infrastructure, connectivity, and other extraneous factors.
Possession and delivery
It may take months or even years to transfer ownership of an apartment. Plots are usually ready for possession at any time. Therefore, a buyer who invests in a plot of land will be able to take possession of the land considerably earlier than a buyer of a flat.
Apartment construction may also be delayed for a variety of reasons. As a result, builders may be forced to finish their projects in a hurry. Due to this haste, builders often compromise the quality of the product to reduce costs while keeping up with timelines. As a result of a time crunch and cost-cutting, they cannot meet deadlines.
Owning a plot of land is a symbol of luxury. A piece of land has no spatial constraints and any construction on it can be built to accommodate a large number of people, depending on the size of the family and its requirements. Hence, having an independent house can also be said to improve one’s standard of living.