Investment is a big decision, particularly for new-age buyers, who evaluate their options based on whether they are wise or risky. Investing in plots is always been regarded as a wise and secure decision. However, prior to making a decision, it is essential to have awareness of the investment location as well as the market.
Investing in real estate is a good investment right now because developers are offering competitive prices to make up for the losses incurred during the lockdown era. Investing in real estate can be done in a variety of ways, like buying an apartment or buying a plot of land. Consumers’ choices are influenced by their lifestyle habits, needs, and other factors such as bank loans and taxes.
Benefits of Investing Plots in ECR
Purchasing or investing in a plot is often a privilege for a buyer. There are no structures or spatial restrictions on a plot. Depending on the specifications and the size of the family, it may be built to accommodate a larger group of people or a nuclear family. As a result, having a self-contained home can aid in improving one’s lifestyle and standard of living.
Plots are open properties that gain more value over time compared to apartments, which have lower appreciation value (depending on demand and location) or depreciation value. The majority of buyers prefer a plot to an apartment because the stakes are higher with a plot. When market conditions are stable, the plot’s value rises.
Purchasing a plot is thought to be less stressful in terms of financial commitments since there are no maintenance fees. There is no intrusion from anyone or continuing costs until the payment is received.
An investment in a plot allows the buyer to design their own dream adobe based on their desires and requirements, while an apartment is a pre-approved plan in a multi-story building with restrictions on changing the size or layout. When buying a plot, the buyer is solely responsible for the security and construction of the building, while renting an apartment comes with a number of additional benefits such as accessibility, security, and location. Greenery and allocated areas are plentiful in a completely pre-designed apartment, rendering flat living a pleasurable experience.
Apartments are also a good option for new-generation nuclear families because they are easy to maintain and come in a variety of price ranges. The popularity of living in small spaces can be seen in India’s major cities. However, many people, particularly the elderly, still dream of building their own dream home.
Here are several reasons why a plot is a better investment than an apartment:
1. Ticket size
As opposed to an apartment, the ticket size is usually smaller, and the only thing to consider is the location, while when considering an apartment, the construction quality, prestige of the contractor, floor space, facilities, and location must all be considered.
2. Return on Investment
Since UDS (Undivided Share of Land) plays a role and the value of the building depreciates over time, the Return on Investment (ROI) in the case of plots is much higher than in the case of apartments.
A plot of land is typically purchased while the market is in its early stages of development. And apartments are typically built when markets are in their middle or late stages of development, impacting appreciation.
4. Full control
On a plot, a person may have full control over the design of their home; however, designs in apartments are predetermined.
5. Resale value
When it comes to resale value, most people choose to purchase a plot of land and build their own home rather than buying a pre-built home. However, with rising construction costs and rising land values, there are more people interested in building their own homes. In the case of a home, the value is directly proportional to the facilities inside and accessibility around it.
6. Delivery on Time
Apartment delivery will take much longer than anticipated because it is dependent on the builder, which is not the case for a story.
Compared to other asset classes such as mutual funds, gold, bonds, and so on, plots are a much more tangible asset class that is often perceived to be more stable as an investment over time.
With all of the above factors, purchasing a plot of land is an excellent long-term investment. In the last few years, plots for sale in ECR have gained a lot of traction, resulting in major real estate developers investing in them!