Apartments or plots, which are better for investor’s?

Real estate investment offers a lot of choice now. It is not easy to choose between an apartment and a plot. What makes for a better investment option? Multiple points have to be considered to arrive at the best decision. Because both options have merits and de-merits of investment. It depends upon you personal requirement, budget, as well as time and effort. We explain these points below.

Advantages of buying an apartment

It is far convenient to buy an apartment. You have a ready choice. It means you don’t require hiring an architect. You will not be required to take legal permissions or liaison with local bodies to build a home. There is no need to haggle with contractors. Your project developer will take care of different requirements. You will only be presented with a perfect home of your choice.

The administration part of it will also be taken care of. You don’t have to worry about electricity or water supply connection, maintenance, security, or added facilities. In the nutshell, you are presented a ready package, which includes most of the things you want as a part of your lifestyle.

Advantages of buying a plot

Plot is a vacant piece of land. It means you have an option to build a home as per your exact requirement. You can design it the way you like. Another benefit is you can supervise the whole construction process. In other words, you can oversee the use of material used in building the house and also oversee any changes required, during the course of construction.

A major plus is ready possession. Plots are usually ready for possession. You will get the plot ownership before the flats are ready.

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Comparative analysis

Your investment in a plot is likely to fetch you better returns. One reason is you have control over the input cost of building a home. Also, a single house construction will cost less than building the complete structure. A project developer is expected to cover the high cost of construction of apartments from home buyers only.

If the market situation is skewed towards the seller then, plot owners are expected to get better profits. The value of plots rise faster than apartments costs. It is often we come across a situation, in which, the price of apartments become stagnant. Remember, you have already purchased the property at a high cost, so the profit margin is not high if you decide to sell it.

If you choose to buy a plot, you won’t have the comfort of having a ready to move in place, which an apartment offers.

Whatever your final decision is, it is good to search on the internet to do a quick comparison. If you key in plots in Sarjapur, your screen will show multiple options, giving you the exact rate of constructing a home on the land. The area of the plot is also clearly mentioned to visualize your new home.

4 Tricks to get high profit in Land

Real estate properties are one of the most popular investment options in India. Most of the investors usually focus on residential units or office spaces which promise a return on investment on a regular basis. Resale prospects for a better rate are also an attraction for many property investors. Flats and other built-up properties are ideal for short-term investors as these can be sold when prices rise. However, if you are looking for a long term investment option that yields better profits, landed property is the ultimate choice. Land is the basic resource on which all other forms of real estate depend. However, it is not sufficient that you buy a plot and look for ways to earn income from it. There are some factors that add value to the landed property say experts at Sulekha Properties. Here are 4 tricks that you can consider while investing in a land.

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  1. Buy early

Buying early when the price is low is the key to making high profit from landed property. Builders and developers are always in need for land resource for their projects. When the availability of land in an area decreases, they will move to other locations that show promise of development. Identifying such areas and buying land at a very early stage when the prices are low is crucial to making a good return from the land. With the arrival of roads, educational institutions, shopping complexes and other facilities, the real estate prices in an area will go up. Those who have bought land at an early stage can then sell it for a better rate.

  1. Size matters

Those who are looking forward to making a profit from land must invest in plots that can support large development projects. Builders and developers are interested in sizeable land where they can start their residential or commercial projects. So, if you are looking for land for sale in Bangalore or Mumbai or any other big city or emerging locations, make sure that the land is large enough so that you can sell it for a profit to builders and developers.

  1. Leasing

Leasing of land for various purposes is another option land owners can consider. Farmlands have great demand as more and more people and groups are into organic farming these days. Arable land can be leased to individuals and organisations involved in agricultural activities. Industrial leasing also ensures profit from the property.

  1. Add utilities

Run utilities like electricity and water to your landed property to improve its value. Buyers are more interested in properties that already have utility connections are willing to pay more for such plots.

How to make profit investing in Land

An investment in real estate is considered a safe bet by a majority of Indians. Whether it is a small plot or a 2 BHK apartment or a commercial space, there are many ways in which a real estate property can be made into a profitable investment. While a residential property can be sold or rented out to make an income as there is more demand for such properties, investing in land requires more caution. There are many pitfalls that an investor needs to avoid while buying a land as investment according to Sulekha Properties.

Purpose and type of land

In what type of land you want to make the investment depends greatly on what you want to do with the land. You may want to buy a raw land, develop it, and sell it for a profit. Or, you may be looking for an industrial land that you can rent or lease. Unless you have a clear idea of how the land is going to be profitable, there is no point in investing it. Finding the best use for the land is important. For example, you may see an advertisement for land for sale in Pune. You need to know what the prospects are if you invest in that property and whether it can bring a profit with the intended use.

Location

As important as the purpose of land is the place where it is located. The location of the property must be beneficial for high returns from the land. A lot of property buyers make the mistake of buying land at the wrong place and then struggle to get rid of it, even for a loss. For instance, an investor buying a plot in a business centre to develop into a residential facility will have difficulties in finding takers. People prefer to live in residential areas rather than in busy commercial zones. Hence, it is essential to select the location based on the purpose of the land.

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Another consideration while choosing the location of the land is the availability of infrastructure and general amenities. Whether the land is to be used for commercial or residential purpose, it is important that it has access to transport, communication, power, water, and other facilities. If the area you have chosen lags behind in these parameters, at least make sure that there is scope for growth in the future. Otherwise, you will be making a dead investment.