Investment is an asset or item acquired to produce income or increase in worth or value over time. When a person buys something as an investment, the purpose is not to use it for themselves but rather to create wealth in the future. Investing, besides giving you present and future financial security, also helps you achieve your life goals!
An investment begins with an expense of some kind today—time, effort, money, or an asset- with the belief of a significantly higher return in the times to come than what was initially put in.
Over the last few decades, real estate has become an attractive investment option, especially if you have done your research well! Deciding to invest in real estate is just the beginning of fulfilling your long-cherished dream of owning a place you can call your own home. What with plenty of choices available at every step of the process. Let’s look at the first and probably the most important one – where should you invest in a plot, a flat, or a villa?
Apart from the financial considerations, many other factors add to the unusualness of each of these three options. These may include the investment needed up front, rate of return, resale value, personal factors like marital status, job (whether it calls for frequent transfers), and the family’s size.
Besides lifestyle preferences, the following are the pros and cons of Plots, Apartments, and Villas individually, which will help you decide!
Investing in plots
Before the advent of high-rise apartments and other dwellings, buying a plot of land and getting a dream home constructed with everything right from the overall design and layout to choice of materials, fittings, fixtures, etc., was on top of the bucket list of every middle class Indian! Buying a plot, especially in a burgeoning metro like Hyderabad, is still a great investment idea. Besides the fulfillment and privilege of living in a house where everything is built to your taste and requirements, it gives you the flexibility of adding additional floors, customize the interiors and exteriors in line with the latest trends.
When it comes to resale value, one needs to keep in mind that land value is always bound to appreciate, given the demand. The house almost always goes through general and season-infused wear and tear over time. You have to pay much attention while planning the layout, interior amenities, accessibility, and quality of construction, as these are the crucial factors that help determine the value.
On the flip side, however, is the whole process of buying a plot of land in India. It is not everybody’s cup of tea! To buy a plot, an individual or a family needs to have financial savings in place. Besides having a good idea of the city, the area he plans to invest in, its future growth potential, etc. One needs to be aware of the risk of fake owners claiming lad to be there’s and other legal tangles like title deeds, tax-paid receipts, clearances required for construction, etc. Once done, one needs to run around to make every aspect of your dream a reality – from architects and contractors to raw material, labour, and many other miscellaneous costs. All in all, it may turn out to be a costly and time-consuming affair. Also, while banks offer attractive loans for buying a plot, they are subject to several other conditions.
Investing in Flats
If you are married or planning to get married shortly, you would fall in the vast majority of homebuyers in our country whose first choice would be flats. The first and foremost reason is the options and choices available, coupled with the fact that the initial outlay required for apartments is far lesser than plots. Other advantages include a slew of amenities ranging from the gymnasium, swimming pool, and clubhouse to play areas, jogging & cycling tracks, and landscaped gardens, to name a few. Staying in an independent house, you will have to pay significantly higher and travel to different parts of the neighbourhood to avail each facility at different times of the day!
Another advantage is you can look at a flat that suits the entire family’s needs – located conveniently for your travel to work, children’s school & college and other places of work & leisure! Maintenance right from an electrician to a plumber is just a few taps on the app away! Flats and gated communities have multi-level security in place, giving you and your family peace of mind!
While it’s easier and more risk-free to pick up an apartment, it’s equally challenging to sell the same at times, given the options available and market conditions at the time one plans to sell. While the property’s location, accessibility from various key areas of the city, and infrastructural developments in the area can help increase the demand, even if the land value appreciates, it might not have much effect on your flat’s market price.
Investing in Villas
Villas are large houses, usually in the countryside or near the sea, and often one that people can rent for a holiday. Originally from Europe, villas have become a preferred form of investment and dwelling for the high and mighty over the last couple of decades.
Villas offer the best of plots and flats. You get to live in an independent house custom designed and built to suit your taste where you can enjoy all the freedom and privacy without going through the financial and emotional challenges of construction. Villa projects, either independent or part of a hybrid gated community, offer significantly lesser units to give the occupants a feeling of space & luxury. Also, these complexes offer best-in-class amenities like a feature-rich clubhouse with a swimming pool, health club, indoor & outdoor games, party hall, amphitheater, library, golf course & children’s park, amongst others, for the comfort, entertainment & well-being of the loved ones. Like flats, other features like maintenance and security are in place for the safety and security of the residents!
Resale of villas like flats depends again on market trends besides location etc. Buyers are far & few and end up looking to buy a new one compared to a preowned villa unless they get an exciting deal!
Whether it’s investing in a plot, apartment, or villa in a city like Hyderabad, they come with their advantages & disadvantages. It all boils down to a combination of what your preference is and what you can afford!
If open plots appeal to you, we suggest exploring Sterling Aster Meadows in Bhanur & Sterling Palm Retreat in Mokila, two fast developing areas of Hyderabad with premium gated community open plots at great prices. To know more, visit us at www.sterlingheights.in or call us at 63663 70422. You can write to us at sales@sterlingheights.in.
Happy investing!