Investment is a subject which confuses many. It often puts the investor in dilemma as to where he should invest his money; whether land or flat? The new projects in Ghaziabad are the exactly the kind of property you would like to invest in. With the new projects in Ghaziabad, it gets more and more difficult to decide. If you give it a harder thought, both have some merits and demerits. These should be considered and well compared before taking a decision. Here we will highlight both merits and demerits of investing in land as well as in a flat.
While investing in a flat:
Though flats seem to be a very easy investment; with the upcoming residential projects in Ghaziabad. One must really look up to the merits and demerits of investing in a flat.
Merits:
● Investing in a flat benefits you in terms of security and accessibility.
● If the housing prices go up, the investor investing in a flat profits greatly.
● Sanctioning a loan from the bank becomes much easier if you buy a flat.
● In case you give your flat on rent, it can give you a handsome amount, with the modern day laws there are minimum chances of litigation.
● Flats are easy to buy and also the investor can also take leverage on its fund.
Demerits:
● The flat is already designed and constructed, so the investor lacks or is restricted the freedom to make changes in its size, structure or shape.
● The flat has a limited life span and its value goes on diminishes ones bought. After a certain period it lacks growth and flexibility in use.
● Delayed possessions are one of the major drawbacks of investing in a flat.
● The developers often compromise on the quality of the flat to control the budget hence reducing the flat’s life.
● The depreciation on construction reduces the growth rate, therefore its value grows in diminishing rate.
While investing in a land:
As we highlighted some important merits and demerits about the flat, we must also consider the same about investing in a land.
Merits:
● Buying a land gives the investor the freedom to build a house of his requirement.
● With the lack of space availability in each city, the cost of land grows quickly.
● Land is always in demand as its rate does not fall.
● The value of land is immediately appreciated due to zero depreciation.
● As the piece of land does not need construction, delaying in possession is never an issue.
Demerits:
● The land is prone to litigations and can create huge problems if anyone gets involved.
● The investor has limited options to leverage its financial positions for buying a land.
● Banks do not easily grant loans for buying land.
● Land generates a very low income if rented.
● If the tenants put the property in to litigations, it is very difficult to reoccupy it.
To draw a conclusion, while investing in either land or flat, one must focus on his requirements. The investor must invest in an avenue only when he is sure of its utility, like the upcoming residential projects in Ghaziabad. If the investor wants to buy the property for his personal use, land is a better choice; considering its flexibility and long term appreciation. On the other hand if the investor wants to resell the property after a short period, investing in a flat is a smarter option. If the investor doesn’t hold the flat for a long time, the depreciation factor doesn’t stand. The upcoming residential project in Ghaziabad holds good for senior citizens or others who can’t devote their time to maintain the property as flat is an advisable choice over land.