Property investment whether in the form of an apartment or a plot is one of the major investment decisions which we all have to make. Although both of them fall in the category of fixed assets, however, from an investment point of view, both have their advantages and disadvantages. This post will help understand the pros and cons of both.
Deciding whether to invest in an apartment or a plot of land, a tough choice to make is always. But while making this decision, there are many things which you must take into consideration before taking this big financial plunge. Let us see what these considerations are:
- Where in Kolkata do you plan to buy the property?
Before investing in property, it is essential that you be clear about the areas in which you would want to spend your money. If you want to invest in an apartment in Kolkata, then Bolpur, Action Area III, New Town, Khardaha, Uttarpara, etc. are some of the prime areas to consider. On the other hand, if you are keen on investing in land, then you will have to consider the outskirts of the city of Kolkata where there is surplus land unless you have the budget to buy a piece of land in the middle of the city. Garia, EM Bypass, Behala, etc. are some of the popular destinations offering plots for sale.
- Consider the finances
Investing in property in a metro city is never going to be easy, especially on financial aspects. Let’s say you intend to invest in apartments in Kolkata’s popular areas like Uttarpara, Khardaha, Bolpur, etc. where prices start from approximately 11 lakhs for one BHK, 22 lakhs for two BHK and so on depending on what you intend to buy. On the other hand, investing in land can start at somewhere around 16.5 lakhs depending upon the per Kottah rate as may be prevalent. This can go up to almost 55 lakhs in areas like Rajarghat. Note that location always plays an important role while deciding the budget.
- Ancillary Costs
Developmental cost is a cost which needs to be put into the asset to make it capable of being used. In the case of a ready-to-move-in apartment, you need to invest in some interior or furniture before you start staying. On the other hand, if you buy land just for investment purpose, you need not invest in any developmental work. However, if you intend to make something out of it, like a farmhouse you will have to incur some costing which will be quite considerable.
- Post Sale Maintenance
As you must have observed, even if you buy a ready apartment in Kolkata, there are a lot of maintenance costs involved. For instance, there is the annual maintenance cost, basic electricity cost and some other expenses which are to be borne by you since you are the owner of the flat. On the other hand, if you invest in land, then apart from the land cost, there may not be any additional cost involved. Hence, in that sense, investing in land becomes advantageous. It is only when you develop and convert the barren plot of land into a proper farmhouse that the maintenance cost starts increasing gradually.
- Scope for Resale
Although you have no plans to resell it, nevertheless, you don’t know what the future holds for you, hence, it is always important to think it through. In terms of resale, apartments are always better since the demand for apartments will keep rising due to space crunch. On the contrary, selling or reselling can be slightly difficult in the case of a land as the market of plot buyers is quite small and limited. And to add to that, even the market condition should be such that buyers are able to buy a piece of land without much of a hassle.
As stated before, both apartments and lands are equally attractive areas in which you can invest your hard earned money. It is up to you to decide your priorities and then make the right choice.