Investing in a property is for sure an arduous task for everyone. Choosing from a myriad options and going correctly through the entire process is a challenge in itself. However, of all the challenges you face, having a good financial plan is the most difficult. You must have a sound economical backing to make that initial investment and then the installments. Now, the next question is whether you should invest in a readymade house or residential plots in Noida.
While banks are readily available to help you through the process of acquiring your dream home, they are not very interested in funding your plot purchase. But if you are buying a flat in an apartment project, getting a home loan is easier. There are several other advantages and disadvantages of investing in both of these.
Let us discuss the pros and cons of investing in the two from different points of view:
From Investment Point of View- Every investment requires a substantial amount of initial funding. In this case, flats are the winner. You have to pay a fixed amount as the initial investment and then the installments. The cost of your investment is not going to increase afterwards. However, in case of land, you might pay a lesser amount to acquire it but the cost of constructing a house is more. Also, there are chances of spending high above your budget to get exactly the type of house you want to build.
From Returns Point of View- In case of a house constructed on a piece of land, the value of land increases but the value of the house will depreciate due to wear and tear. So as an owner cum builder you have to pay special attention to the floor planning of your house, the quality of raw material, fittings and furnishings and the amenities within your house. The market value of an independent house will always be higher than that of flats because of the difference in demand and supply. While a number of people are ready to buy independent homes, there are not many to choose from. So you have to build a home that will stand out among the other homes.
From Resale Point of View-The resale value of a home works in the same way as the returns. While constructed homes will get a better resale value, flats may be the winners in urban areas. The resale value of your constructed home will depend upon the location, its accessibility to important landmarks, the quality and age of the house and the inbuilt amenities. In case of flats in an apartment, the value of your flat will rise in proportion to the demand of other flats of that colony.
When the process of buying is considered, purchasing a flat is easier and when you buy it through a consultancy like Investors Clinic, it is easier than anything. But when you buy a land on your own, too many litigations are to be taken care of. You must thoroughly check the documentation like title deeds, encumbrance certificates, tax receipts, etc. Building your dream home on your own can be more satisfying but it is surely more arduous than buying a flat.
Know your preferences and take the right decision.
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