Investment in Land or Apartment was a Good Idea?

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Investment in land or apartment, it was a very interesting and thinkable question. The apartment buyer has lack of freedom to change the shape and size of the construction area. However it benefits in matter related to security, accessibility, and location advantages. Flats are very easy to buy and an investor can take leverage on its fund, in conclusion the return is also very good. The apartment culture has take over the residential market in major cities of India, but people still cherish the desire to buy a plot of land and build their own home. If you intent to do so you must gauge several aspects such as the cost of building, appreciation, financial assistance and income. When you construct your own home, you do it as per your liking and taste, which may not necessarily appeal to a potential buyer when you decide to sell it. He will then have to either invest more in renovation it or pulling it down altogether to build a new one. This can impact the selling price of the property to a great extent. This disadvantage is absent in the case of apartments because they come with a fixed structure that’s part of a building and easier to sell at the market price without much bargaining. INVESTEMENT IN LAND OR APARTNMENT WAS A GOOD IDEA? , most of the cases apartment was feasible. Amenities impact the resale price too. Cost of flats in kochi rise higher and faster given their limited number compared to independent houses which may not boat extra facilities that a housing society provides. The only advantage plots have is that the buyer gets to own the land and can construct a new house or an entirely new building to make profits.

Major Helpful Factors.

• COST-

 Depends on locality, size and availability of space.

• VALUE APPRECIATION - With space availability vanishing quickly in every city. It is expected to appreciate very quickly.
• RISK - The land is prone to litigations and it is very difficult to come out of it once anyone is involved.
• BANK ASSISTANCE - The buyer has limited options to leverage its financial position for buying a land property as banks usually doesn’t provide finance for buying a land/plot.
•REGULAR INCOME SOURCE OR RENTAL INCOME – Land generates a very low income if rented and sometimes it is difficult to reoccupy the land if the tenant pushes the property into litigation.
• LIQUIDITY AND FUTURE PROSPECT – Land is always in a great demand. But in apartment, the depreciation on construction reduces the growth rate, therefore its values grows with a diminishing rate.
So that the title “INVESTMENT IN LAND OR APARTMENT WAS A GOOD IDEA?” can be concluded that the best option after analyzing the factors, it is merely invest the fund for a few years until you are ready to invest in a flat. A plot in a location that will see appreciation in the future would be a good idea. However if you're looking for a regular returns you may want to consider investing in a flat. Also check it out on this - "No emi processing fee".