If you are seeking to invest in Pune, then you can choose between a flat or a plot of land. Of course, if you have to move into a new home immediately, then the question of making a choice does not arise, but if such is not the case, then decide carefully between the two alternatives. Real estate in Pune is booming, and people from all over India are rushing in to make lucrative investments. The flats in Pune, which are in prime locations like Baner, Hinjewadi, Viman Nagar, etc. are indeed fantastic options for financing. However, if you would instead buy a plot of land, then check out this comparative analysis.
A comparative study between the investment benefits of a plot of land and a flat
Land: If you are seeking to invest in a plot of land, then the price relies on the locality, availability of space, and size of the land.
Flat: The cost of the flat depending on proximity to societal infrastructure and amenities, locality, size, accessibility, and the design and brand of the developer.
Land: A plot of land is almost always prone to property litigation. If the land that you are seeking to invest in has the slightest legal involvement, then it becomes tough to resolve the same. Even if the registration of the plot of land seems thorough and complete, there is a probability of a legal snag.
Flat: One of the most common problems of buying a flat is the delay in possession. The developer finds it challenging to meet the deadline of possession, and so they ask for a grace period right at the beginning. If you still do not receive the flat within the grace period, then you will receive a compensation amount for the same. But the good thing is that you will not run into pesky litigation if you are investing in a flat.
- Value appreciation
Land: Thanks to the quick disappearance of space availability, the value of the plot of land increases quickly. The flexibility of the options to initiate construction on the plot of land adds to the increase in value appreciation of the property.
Flat: The life span of value appreciation of an apartment is 15-20 years. Over time, a stagnancy may set in but the fact that you can utilize your flat adds to the growth and development of the profitability of the apartment.
- The assistance of the banks
Land: The buyer has very few alternatives in hand to leverage the financial position for purchasing a plot of land. Most banks do not trust landowners, for fear of legal snags. Banks and financial institutions often refuse to provide financial assistance for buying land. And so, if you are seeking to invest in land, then you will have to finance it out of your pocket, without relying on bank loans.
Flat: Banks and financial institutions will encourage you to take home loans for buying real estate in Pune. Taking a home loan from the bank and investing the amount in a flat in Pune is easy and convenient. Besides providing the loan, banks also take care of the legal documentation of the flat. All that you need to do is repay the bank in monthly installments and relax. Move into your new flat without going through any hassle of litigation.
- Liquidity and prospects of the future
Land: When it comes to a plot of land, the demand for it always remains constant and consistent. There is hardly ever any depreciation of land, and so the future prospect of investment in land is always lucrative.
Flat: The depreciation of the flat with time affects the prospect of investment in the flat. The value of the flat proceeds with a diminishing rate, and so investment in an old flat is not a profitable option.
- Regularity as a source of income
Land: A plot of land does not generate a good income upon rent. Reoccupying the land often becomes challenging as the tenant tends to go into litigation over the land.
Flat: A flat is an excellent source of rental income. If you give it out on rent from the first day of possession, then it will generate a reasonable sum of money as rent. Besides, there is very little chance of litigation as flat leasing contracts are not too complicated.