Property investment is a wise decision that necessitates a thorough understanding of the market and the investment location. Many people do not understand why buying a home is a better investment than other saving options, and as a result, they miss out on a lot of good possibilities and benefits. And, for all those astute investors, you may have realized that you need to invest in a property but are unsure which of the three options – villa, apartment, or plot – is the better investment opportunity. While everyone has been or is currently in the same boat of perplexity, we have written down the benefits each one offers to help clear things up. Now it’s up to you to make a decision on which is the better investment option – flat or villa or plots based on what you’ve read!
APARTMENT
General features
When it comes to metro areas like Kochi, investing in an apartment in a prime location, especially for young families or millennials, might be an intriguing option. Many new flats in Kochi offer modern amenities at lower prices than villas. Security, a water system, and power backup are all features that aren’t typically available in a stand-alone Villa, where upkeep expenses are much greater. If you’re thinking about getting a home loan, it’s far easier to get approved for an apartment than it is for a villa or plot.
Scope of earning
If you do not intend to occupy the flat immediately, you can rent it out and avoid paying EMIs if you have taken out a home loan. Apartments are known for having a high resale value and a wide range of buyers. Because there is a larger demand for flats, it is expected that finding a buyer would be easier. Appreciation is one area where apartments lag behind their counterparts. The value of the land is the primary source of appreciation. As a result, when it comes to apartments, the rate of depreciation is accelerated by the building’s wear and tear.
Pros
- Comparatively affordable
- More popular in the rental market
- Easier to exit
- Lower maintenance
- Better security
- Easy to manage
- Ideal for small families
Cons
- Limited space
- Limited privacy
- Negligible land ownership
- Overcrowding
- Not easy to customize
- Not ideal for large families
- Lower levels of hygiene
PLOTS
General Features
Plots are favored by those who want the freedom to build and design their own homes, as well as investors who want to see a good return on their investment. If you want to build a house on the plot, you’ll need a lot of money because you’ll be paying for the land, building, architects, designers, and labor. Purchasing a site and constructing a home is likewise a difficult and time-consuming undertaking. Banks do provide loans for plot purchases, but the terms and conditions are different and more stringent than those for apartment purchases.
Scope of earning
Unlike apartments, plots cannot be rented unless they are used to build a residence. Plots, on the other hand, are thought to provide a higher rate of capital appreciation than developed structures. This is especially true when the market is lucrative and demand exceeds supply.
Pros
- Less investment cost
- Multiple uses
- Higher resale value
- Less maintenance
- Supportive regulatory policy
Cons
- Paucity of land
- Encroachments
- Illiquid asset
- The problem in availing finance
- Tax complexities and evasion
VILLA
General Features
When you hear the word “villa,” visions of wealth and magnificence come to mind. They combine the advantages of both plots and flats, giving you the option of living in a self-contained home on the one hand. In the event of a plot, on the other hand, you won’t have to worry about its building! Today, there are also options accessible in gated communities, which provide amenities as well as top-notch security, similar to apartments. Villas in Kochi are one of the best investment possibilities since the affluent class is willing to spend that much money to have all of the amenities under one roof.
Scope of earning
When it comes to villas, capital appreciation may not be as high as it is for a plot of land or even an apartment. This is primarily owing to the hefty initial investment and low demand compared to apartments. The monthly rent for such units is typically much more than that of an apartment. However, because of the high price tag, finding tenants is difficult.
Pros
- High levels of privacy
- Luxury of space
- No overcrowding
- Land ownership
- Easy to customize
- High levels of hygiene
- Ideal for large families, celebrities
Cons
- Highly expensive
- Private security required
- May only be available in suburban locations
- Low rental yield
- In the rental market, it is less popular.
- Hard to exit
- High maintenance
Taking these factors into account, each investment has advantages and disadvantages, but it all comes down to your immediate plans, family planning, current budget, and lifestyle! It’s preferable to analyze your preferences first and then make the best investment decision!
