What should you invest in: Land or Apartment?

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Buying a property is always a challenging task. Sensible decision to invest in the form land or apartment is more difficult. There is a dilemma in the mind of a buyer to choose either a piece of land or a hassle free ready apartment. Both the options have got their own set of merits and demerits. Before taking the final call, one should meticulously study each and every aspect.

What should you invest in: Land or Apartment?

Below are the comparative analyses which will help the investor to take a definite stand whether to decide for land or plot:

Return Value: No doubt, land has an advantage over apartment because of its greater assurance of return value. However, apartment is usually considered with lesser value returns.  In terms of monetary value from the very beginning, the apartment is more beneficial. One can rent out and obtain a monthly rental fee from it. On the other hand, it happens that the land investor is trapped in a situation has no other option but to keep the land as a piece of property generating a meager income.

Right of Possession: One of the most commonly faced problems in case of apartments is the delay in handing over the flat. The developer states various reasons of delaying the project resulting in harassment to the buyer. On the contrary, possession of land is quite simple, once all the legal aspects are scrutinized, the plot then belong to the purchaser. However, it would be always wrong to assume that plots are completely hassle free. At times one may be stuck into many types of land violation and disputes which lingers for many years. Not only physical energy but mental stress gets involved.

Financing: Sanctioning loan for residential project is quite easily available at the market.  Nowadays getting a home loan is instant with flexible EMI options which ultimately help in the deduction of tax. It is observed that Investment in plots has been popular but when it comes to the finance part, the difficulty arises with only few available options in the market. Furthermore, the tax deductions are only eligible after the completion of construction with a limitation only for a year.

Construction: Purchasing a flat is trouble free than plot. You can simply relax and wait for the date of completion and handing over. You are not fully involved in the whole process. However, talking about building your own house in plot is very much painstaking and time consuming. Nevertheless designing your plot helps you to make changes as per your own desires and requirements.

Both plots and apartments offer unique benefits, but also come with their own disadvantages. It is important for the investor to be aware of these pros and cons, and then make a calculated decision.

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