There are many times we wonder what would an ideal investment be in real estate, Land or an Apartment? So many factors come into picture like location, price, appreciation etc. This decision is not so easy to take sometimes. Below are points that factor out the points between the two, head to head. We hope you gain some clarity on this subject through these points:
1. The question of illegal occupation
If a plot is not in a gated community then there are always chances of illegal encroachment whereas an apartment has no such risk factors.
2. Appreciation Prospect for the Future
Though both plots and apartments appreciate with the former appreciating more, however locating such available lands is a hard job.
3. The question about the quality of construction
In an apartment where the buyer needs to depend on the builder there is always a chance of poor construction, whereas in land the owner can build his own house giving special emphasis to quality.
4. Risk Factor of Property Depreciation
With apartments after some point of time there is always some depreciation possible, however in land there is no such possibility.
5. Tax benefits and earnings
Buying residential apartments always gives tax benefits in case a home loan is taken to buy it. Also the apartment can be given on rent for earnings, while a plot of land is useless until any construction is made on it.
Mr. Satheesh B R is AGM- Finance & Accounts at Vakil Housing. He is Commerce graduate from Karnataka University, Dharwad. He has many years of experience in auditing . Later Associated with manufacturing and export Companies by heading Accounts and Finance. In last one decade he is associated with Real Estate Companies in Bangalore, Specialized in project finance and indirect taxes.