Individuals living in big cities prefer to buy a flat while those in smaller cities, opt for land available at an affordable price. Real estate has entered smaller cities and the companies are developing multi storied apartments across different cities in the country. This adds to the dilemma of the buyers, whether to invest in land and build a house or to purchase a flat. The below mentioned points will help you decide.
Buying flats is an easier choice for those who live in big cities as compared to those from small towns who can also opt for land available at much affordable prices. But constructing your own house is not simple. It is a complex process both in terms of finances and legalities. Real estate companies are building multi-storied apartments in many Tier-II cities across the country, putting buyers in dilemma on whether to invest in land or in a flat. So, here are a few points that should help you decide.
Firstly, it is important to keep in mind that loan for flats will be easily available from the Bank but a loan for the purchase of land might be difficult to obtain. Second, purchasing a land and building your own home will demand constant monitoring, time and money. The project could go over budget and the deadline could not be met. With a flat, a fixed amount is to be paid to the builder as per the agreement.
Further, in the purchase of a flat, all the permissions are cleared by the builder, whereas if you are converting a plot into a residential area, you will have to seek several permissions and clearances from the regulatory bodies. This could be tedious and involves a lot of paperwork. Flats come with a fixed structure, hence, they are easier to sell at the prevailing market price, whereas a home will be constructed as per your liking and the buyer may or may not like your taste, this could make it difficult to sell the same at the market rate and the buyer may ask for a discount on the price.
Next, it has been noticed that flats have a higher resale value due to the amenities as compared to the housing societies which may not have any additional facilities. The owner of a land can construct a house as per his taste or he could construct flats that have multiple floors and can make profit on his investment. When buying a flat, there are lesser chances of being duped as necessary permissions have already been taken. There have been cases where buyers have been duped into buying land which was under dispute and which further caused legal complications.
A flat is also considered safer due to the security and being surrounded by people all round the clock. But your decision should be based on your financial ability and your purpose behind the decision. If you are looking for an investment at this point of time, you can invest into land until you are ready to build a home or avoid the hassle of construction and buy a flat.
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