Which is the right buy? Flat, Villa or Plot

When you finally decide to buy your own house, one of the many questions that confuse you is whether you should invest in a plot, a flat or a villa? Apart from the monetary determinants, there are many other factors that add to the peculiarity of each of these options. These may include considerations like the upfront investment needed, rate of return, resale value and some personal factors like marital status, job (whether it calls for frequent transfers) and also the size of the family.

Besides lifestyle preferences, following are the pros and cons of Plots, Apartments and Villas individually:

Plots Nothing can be compared to the satisfaction and freedom of living in a house where everything is built and customized to your needs. You can build extra floors, modify the interiors and exteriors according to the latest trends and even expand the area later if you want more space. Also, with the soaring real estate price and a city struggling for space, buying a plot is a favorable idea.

However, seeing the current market scenario and the demand-supply balance, buying a plot is a very challenging task in India.

A person needs to have a sound financial reserve. Hiring architects, bringing in the raw material, labour charges and many other costs are responsible for making it an expensive and time consuming affair. Banks do offer loans for buying a plot but they are subject to several other conditions. The rate of return is higher because of the demand-supply gap; the supply of plots is less as compared to that of flats.

As far as the resale value is considered, you should note that the value of land will always appreciate even though the house goes through 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 for valuation. Also, buying a plot is a risky affair owing to the fake registrations and other legal issues. One should thoroughly check the documents like title deeds, encumbrance certificate, tax receipts, bills, etc. before buying a plot.

Flats A large fraction of the home buyers in India prefer flats over plots. The main reason being larger number of options available for apartments and lesser initial investment required.. You also get extra benefits in the form of amenities like gymnasium, swimming pool, clubhouse, play areas and landscaped gardens that would have cost you a bomb, had it been for your independent house.

Owing to the high supply it is easier to find flats near your office or your children's school. Maintenance is also not a problem as plumber, electrician, etc. are just a call away. Security features of the apartments add to the benefits. You can also rent your apartment for a regular income. Moreover, the fraud risks are less in case of apartments.

The resale value of your flat depends on the demand, supply and the current market trends. While, the location, accessibility and infrastructural improvements in the area can increase the demand, it's a drawback if the ownership of land is not defined. So even if the land value appreciates, it might not have much effect on your flat's market value.

Villas Villas come with the combined benefits of plots and flats. They give you the pride of living in an independent house with all the privacy and freedom but without the headache of huge investment for construction. The concept of gated villas is mainly attracting the attention of affluent class buyers who are ready to pay exorbitant amounts to get what they want. Villa projects offer lesser units so that the complex does not get overcrowded. Also, these complexes offer common amenities as well as private amenities like terrace gardens.

All three types of properties have their own advantages and drawbacks. So, to get the best deal, you should know your own preferences and then judge the options on different criteria.

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