‘Buy land, they are not making it anymore’ – Mark Twain
Though Indians have long considered real estate as an investment, buying a home has always been a personal milestone. Every one dreams of owning that perfect house. The house with the big rooms, a garden for the children to play in and a deck for the grand parents to relax on, this is the stuff that dreams are made of. But the question that’s always playing on a buyers’ mind today : Do I buy an apartment or a plot?
Things have changed to a large extent across cities and the lack of space and skyrocketing real estate prices have made it much more difficult for the average home buyer to buy an independent house. Of course, that decision depends on a number of factors such as the city you reside in, the state of the local economy, the strength of the infrastructure and market trends along with personal factors like the size of budget, personal preferences etc. So assuming you have overcome all these hurdles the question still remains, which one is better a plot or an apartment ?
Your decision should be driven by three crucial factors: What’s the purpose: Is it for investment or living? Land would definitely offer the buyer additional flexibility and value appreciation in the long-term. If we are looking at immediate living, then flats would probably be a better choice. Two: Your risk appetite. Three: Where you live and other economic and social factors.
Times have changed and so have trends. The new-age customer prefers to live in the comfort of a flat in a society or residential complex that offers world-class amenities, round-the-clock maintenance and security facilities. Residential apartments will also have clubs, equipped with a gymnasium, shops and other recreational facilities within the complex that enhances the overall quality of living.
However, not all is hunky dory. The average lifespan of a flat has reduced from 80-70 years to 30-50 years and it places an economic burden on the home buyer as the value of the flat depreciates over time. Of course, it depends on a lot of variables such as the weather conditions, the quality of maintenance, the construction quality etc. But, plot owners are better off when it comes to the resale of a plot as the owner of the house is also the owner of the entire land on which the house has been constructed. Age of the land is not a factor. The supply-demand equation works in favour of plots and as land becomes scarcer it only becomes more valuable.
One must also mention the other great advantage that plots offer: It gives a great degree of flexibility when it comes to designing and modifying one’s dream home. You can develop it vertically by adding more floors or horizontally by expanding when the need arises. But, the burden of construction and maintenance is on the plot owners unlike apartment owners because these are usually taken care off by the the builder in a residential complex. They will also have to make separate provisions for power and water back-up and constantly be on the lookout for reliable and dependable utility workers.
Plot owners do have an advantage though: The maintenance bills are not likely to increase over the years like in the case of apartment owners, who will be facing the difficulties of an ageing building. Also in the case of a residential complex, there will always be an issue of certain residents not paying on time or the RWA not being proactive enough to deal with such issues.
Security is definitely something that bothers most home buyers, especially when they travel. plot owners are very unlikely to put up CCTV’s, whereas in apartments the visits by outsiders are constantly monitored by the security and the presence of CCTV’s act as a major deterrent.
Each of the options seem to have their own set of pro’s and cons but that still doesn’t give us a clear solution. The answer to this problem is actually quite simple : Find a cross-section between both flats and plots – A GATED COMMUNITY. White County, a project from White Projects, offers you a lot of features that an independent plot won’t like CCTV surveillance, round-the-clock security, parks and of course the much loved clubhouse. And what could be better than that? Buying a plot is a good long term investment decision that allows you the flexibility to build and design your home as you please and a project like White County gives you all the benefits that a traditional residential apartment complex would offer. Honestly it’s the best of both worlds!