Buying Real Estate is always an important decision for an Indian family mainly because the ticket size is quite big that most Indian families buy a house only once or at the most twice in their lifetime.
It is always advisable to do proper due diligence before taking the final decision.
One question that every homebuyer faces while making the decision to buy a home is whether he/she should buy a flat or a plot ?
Let us take a look at the factors to be considered while thinking about this question:
- Why are you buying the property I.e. What is the end use of the property?
Are you looking to build a house for yourself or are you looking to rent it out ? If you are looking to rent the property then you should probably look at buying an apartment because it will start giving you rent immediately.
If you are looking to build a house for your family then a plot of land will allow you more flexibility in designing the house according to your needs.
2. What is your payment mode/method ?
Securing a bank loan to buy a piece of land is more difficult than securing a loan to buy a flat.
Generally banks will finance 80% of the cost of an apartment, while they will finance only 75% of the cost of construction on a piece of land.
In case you are going for a plot then the bank will probably offer you a land plus construction loan wherein you will have to construct a house within a stipulated time period of one or two years.
Would you be able to afford the emi of the land plus the construction is a question that you should ask yourself then.
3. Are you ready to sacrifice Facilities and amenities in case you are buying a plot ?
Plots generally do not offer the same facilities and amenities that a well planned housing society can offer.
Some examples include planned parking, gardens/parks, playing areas, swimming pool, Clubhouse etc.
In a plot of land you would be on your own and will have to sacrifice on these aspects that enhance the quality of life.
4. Which location will suit you better ?
Since most of the central locations have been taken, iit will be difficult and expensive for you to find a plot in a central location.
Even if you do you will have to adhere to strict building and construction laws of the area.
In a flat you will not have to apply for any permissions since a builder will have done so already.
5. How important is security for you ?
Proper security is one of the most important factors to consider while deciding your next house.
A plot of land loses out in this aspect since a flat in a housing society offers much better security compared to a plot.
In new housing societies these days security features such as phone apps, CCTV cameras, Intercom’s, Controlled entry and exits are quite normal and mandatory.
In a plot of land you are basically on your own and you will have to arrange all these security features yourself.
Another factor to consider is if the male member is in a job where he needs to travel then safety and security of the family becomes a big concern.
There are many other factors to consider but I consider the above mentioned five points to be the most important while deciding between a plot and a flat.
Once you have carefully considered the answers to the above questions, you would be in a position to move ahead with your search for a plot or a flat, depending upon your answers.
I wish you all the best in your search for your dream home.
You can get in touch with me on : 6283060221