Buying a home is deeply embedded in Indian culture. It is both a financial and psychological investment. There has been a shift in housing buying habits from houses to apartments in India. A house used to be associated with having your own roof and shelter, and flats/apartments were frowned upon.
When it comes to buying a property in 2023, buyers are often faced with two options. On one hand, they can purchase land, and on the other hand, they can purchase an apartment.
There are both advantages and disadvantages of flats and plots. It is therefore imperative that buyers identify their own needs before deciding to invest. The world of real estate investment is overwhelming to say the least. It is difficult to invest in real estate. It is not only necessary to choose a secure path, but also to decide whether to buy an independent house or an apartment in a society.
Controversy over land vs. flat
When deciding whether to buy an apartment or a piece of land, buyers should carefully consider the following factors.
In the case of a plot of land not belonging to a builder's project, the buyer has instant possession. In the case of an apartment, however, the buyer does not take ownership until the project is completed. Usually, most projects are delayed, so buyers have to wait a long time before they can take possession.
Plots are best suited to people who have the time and resources to build their own homes, whereas apartments are best suited to people who don't have a lot of free time.
In contrast, flats generate a steady monthly income when they are rented. Furthermore, since modern tenancy laws are in place, there is little room for lawsuits.
In most cases, the homeowner closely monitors every aspect of the construction on his plot of land to ensure it is of the highest quality within his budget. To keep prices down and to meet schedules, developers often compromise on construction quality in apartments.
As land is a finite resource, its value appreciates faster than that of a flat in a similar area with equivalent dimensions.
Financing and Tax Paradigms: It is hard for buyers to invest in real estate. Although HDFC Plot Loans and SBI Realty provide loans for plot purchases, the process is lengthy. Moreover, the accompanying tax benefits are conditional on the plot of land being completed and are only available for the first year.
An unfenced or insufficiently fenced parcel of land is vulnerable to being encroached upon. Apartments, however, are not at risk of intrusion.
Buying a parcel of land gives a buyer the freedom of creating the home he wants exactly the way he wants it. The buyer of the plot of land has the option of customizing the house to his satisfaction. In contrast, a flat does not allow him to modify the design or size of the construction area. Everything can be customized to his specific needs, preferences, and budget.
If the plot is located in a remote area, it may be difficult to locate essential amenities. Most apartments have good walk scores because most amenities are within walking distance.
It can be difficult for a homeowner to watch every step of the development of a piece of property meticulously. The homeowner, on the other hand, only has to deal with the interiors once the apartment is turned over.
Buying a Home in 2023
Today's generation is drawn to apartments, while young people are keen on having their own independent homes. As remote working becomes more common, many are searching for homes outside city centers. Being a homeowner offers financial freedom that the cost of an apartment lacks, as investing in land is often cheaper than buying a residential dwelling. Even within cities, prices depend on the area; usually being cheaper in the outskirts. Self-building a home is more cost-effective, but you must be sure you can cover the loan with EMIs if needed.
Gains in financial terms
When it comes to long-term financial rewards, one's money would be better served by investing in a house built on a plot of land. This is due to the ease of owning and developing a plot, increasing its value more quickly than constructing a structure. Location plays a significant role here, with stable markets likely resulting in the appreciation of the plot depending on other factors such as environment, quality of land, and upcoming infrastructure facilities in the area. Additionally, land parcels are not subject to age-related degradation as construction does. On the contrary, self-constructed houses decrease in value over time but can be supplemented by ever increasing values of the land parcel upon which they stand.
Due to the modest entry ticket size, even new investors can purchase land without financial constraints. Owning a piece of property also gives you the freedom to begin construction whenever you want, regardless of your financial situation. Many investors prefer to buy land when they are young and then build a house later on.
The real estate industry continues to face delays that frustrate customers
Owning a plot has minimal delivery risk while buying a flat has a high likelihood of such. It requires more approvals and clearances, which also means that constructing your own house carries a lower chance of delay than buying one already made. The benefits of owning your own home are numerous - you gain absolute privacy and tailor-made security systems to suit your needs. Furthermore, you can pick the design according to your tastes and budget, starting construction when convenient.
Conclusion
Acquiring real estate is influenced by many aspects, including cash flow, financial aid, timeframe, location, and potential future preferences. There is no approach to investing which accommodates all investors; the perfect method varies from person to person depending on the length of tenure, associated costs, and the extent of control they wish to exercise during construction. Owning a home has historically been a more independent experience compared to living in an apartment building - perchance we will realise the value of our forebears' insights as we return to these traditional ways.
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