When it comes to making the biggest financial decision of your life, which is buying a home, there is always one thing that most of us are confused about. The question here is whether to invest in a piece of land or to purchase a flat. This is the most common dilemma. Let us delve more into this to understand each of the aspects involved in these two investment decisions.
Let us first consider the price aspect. It generally costs lesser to buy a piece of land in the outskirts of the city or in a developing area. However, it is close to impossible to buy a plot in an upscale area. Middle and lower income groups tend to move towards flats. This can be comparatively more available and there are different budgets within which you will be able to purchase an apartment. On the other hand, even if you buy a piece of land, you will have to construct a home and the cost of construction is very high in today’s times. When you compare this to apartment, you have already been given a flat that is constructed. Price of an apartment depends on various factors and most apartments can prove to be more costly than land. However, the advantage here, again, is that an apartment in most cases is ready-to-move-in.
One of the other most important aspects to be considered is the appreciation factor. A plot of land will not only be your own completely but will also appreciate more when compared to a flat. Flats that are older will slowly start losing their value. This is because the building will slowly become older and disintegrate. This is definitely not the case when it comes to a piece of land.
When it comes to earning capacity, you can earn rent income from a flat. This not the case with a plot. You will not be able to do much with a plot unless you actually construct a house. You will have full ownership and control of the piece of land. This will not be the case in case of a flat because you only own a small portion of the total property. The other thing is that you can easily get a loan against an apartment but this will not be possible on a plot of land. Though it is not impossible, it is quite hard.
On the whole, it only depends on what your personal preferences are. Some people find it more convenient to go for a flat as it comes with amenities , while others who want to construct their own home want to go for a plot. Overall, it all depends on what you want.
Let us first consider the price aspect. It generally costs lesser to buy a piece of land in the outskirts of the city or in a developing area. However, it is close to impossible to buy a plot in an upscale area. Middle and lower income groups tend to move towards flats. This can be comparatively more available and there are different budgets within which you will be able to purchase an apartment. On the other hand, even if you buy a piece of land, you will have to construct a home and the cost of construction is very high in today’s times. When you compare this to apartment, you have already been given a flat that is constructed. Price of an apartment depends on various factors and most apartments can prove to be more costly than land. However, the advantage here, again, is that an apartment in most cases is ready-to-move-in.
One of the other most important aspects to be considered is the appreciation factor. A plot of land will not only be your own completely but will also appreciate more when compared to a flat. Flats that are older will slowly start losing their value. This is because the building will slowly become older and disintegrate. This is definitely not the case when it comes to a piece of land.
When it comes to earning capacity, you can earn rent income from a flat. This not the case with a plot. You will not be able to do much with a plot unless you actually construct a house. You will have full ownership and control of the piece of land. This will not be the case in case of a flat because you only own a small portion of the total property. The other thing is that you can easily get a loan against an apartment but this will not be possible on a plot of land. Though it is not impossible, it is quite hard.
On the whole, it only depends on what your personal preferences are. Some people find it more convenient to go for a flat as it comes with amenities , while others who want to construct their own home want to go for a plot. Overall, it all depends on what you want.
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