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Flats vs Plots investments

What is your preference? Either for residential use or as a source of your 2nd income from real estate. Despite of the fact both land or flat are equally good investment option, every individual has their own arguments on their preference. Here we have tried to come up with the best possible pros and cons on why to chose plots in layouts or flats in apartment.

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Flats vs Plots investments

  1. 1. Plots in Layout / Flat In Apartment TGS Constructions Pvt.Ltd
  2. 2. The reality sector of India came a long way to become one of the fastest growing real estate markets of the world. It is successfully attracting the domestic as well as international investors. The growth articulated mainly because of the large population, rising income and the majority of mid budgeted segment of population. The sector would attract more NRI investments in near future with the relaxed FDI norms and Bangalore is expected to be the most preferred place for property investors. Adding more the year 2015 witnessed a couple of favorable changes in real estate bills which garnished sufficient growth in the recent times. Introduction
  3. 3. Quick learns • What are the growth drivers of Real Estate India? • How to find the right asset for regular income? • Comparing Plots in Layouts and Flats in Apartments as investment. • Which one is better for residential purpose?
  4. 4. The Growth Drivers For Indian Real Estate
  5. 5. Internatio nal Tourist Medical tourist New streams of Business Increasin g Young Buyers Rising FDI Solid Demogra phy Changes in Fiscal Policy More Mid Income Groups Changes in Real Estate Bill Growing Tourism Easy Finance Increasin g Nuclear Families Indian Real Estate
  6. 6. Finding Right asset for regular Income Buying property is a tough decision as it racks your head to decide whether to buy a flat in apartment, an individual house or a plot in a layout. When you are buying property to make it a source of income it becomes more tougher. However Each of them has their own merits and demerits and it is up to the consumer to decide which one is better for him.
  7. 7. Check your Comfort Zone In case of an apartment you don’t have to hire an architect or have to run behind the local authorities to get construction approvals. But land plots has a big plus as you will get possession of the land way before than a flat.
  8. 8. Lag of Appreciation Both for flats and plots, location is the key for value appreciation where as land value is not going to depreciate but flat value will get depreciated with the passage of time.
  9. 9. Tax and Interest Sops As a flat owner you are eligible for an exemption in tax to an amount up to 1.5 Lakh where as on holding a plot you are not eligible for any tax rebates but still you can apply for the interest paid.
  10. 10. Details Plots in land / Layouts Flats in Apartments Cost Depends on the locality, plot size and demand of the area. Depending on the locality, accessibility, designs and brand value of the developer. Value appreciation. Depending the availability of space which is vanishing in cities, it is expected to appreciate very quickly. Flexibility of construction make land to get quick appreciation. A flat has a diminishing effect as it has a limited life span. With the passage of time, the growth sticks. lack of flexibility in use, renovation and extensions are the limitations to quick growth. Risk The land tends more litigations and it is very difficult to come out from it once anyone claimed on it. The delay in project completion is one of the major problems. Very often it is seen that most of the builders compromise in their quality in order to meet with the dead line or to control the cost of the project. Bank Assistance The buyer has only few options to leverage its financial position for buying a land property as banks doesn’t provide finance to buy land property. Taking a bank loan for flats is quite easy from all bank if the builder has a good reputation. Regular Income sources Land property generates a hardly any income if rented and it is difficult to reoccupy the land if the tenant claim on the property for litigation. Flats are ready to generate good income from the date of possession if given on rent. There is hardly any chances of litigation today with new laws. Future prospects Land is always been in great demand as the value of it appreciates immediately due to no depreciation on land. Because of depreciation in construction it reduces the growth rate.
  11. 11. What is better for residential purpose Plots/Flats? There are two types of people living in the world, one who loves to live in flats and other is who loves to live in individual houses. So which option is better for residential purpose? Well there is no specific argument to prove one is better than the other. It depends on your living style and preference which figures out your need.
  12. 12. Flat in apartment Plots in layouts or individual house Flats in apartments are considerably small and are restricted to modify. Though it is bigger but bigger places always ask for high maintenance costs. Flats come with a lot of neighbors who may not be very friendly with you. You will have more freedom of living and there won’t be any curious eyes to look inside your home. Although there is a dedicated security guard at the front gate the burglars can still creep in and take the advantage of many people coming and going inside the buildings. Less security, and an additional burden for you to secure your family from unwanted visitors, salesmen and trespassers. Buying flats for residential purpose is not an option for you if you are a pet lover. House are much better place for throwing parties frequently. Flats come with your own parking lot and if your friends or relatives visits your place they can also use the parking lot. Finding a parking place near your house if it is located near any crowded place will be a difficult task for your friends and relatives. B E T T E R R E S D E N C E
  13. 13. Conclusion “Both Plots in Land and Flat in Apartment has their own pros and cons, one has to access his needs and decide which one is ideal for him”