Common man is always in a state of confusion
to decide whether to invest in plots or flats in Bangalore. Flats look like a smart
investment as people are assured of guaranteed return on investment in terms of
monthly rentals and appreciation of property value. Let’s take a look at pros
and cons of investing in plots or flats and help the buyers make the informed
decision prior to venturing into such deals.
While buying an apartment customer does not
think much about planning, designing and building a home. The buyer just pays
the amount and occupies the home that has been provided to him by the builder.
He can buy home but cannot make many changes to it, except the interiors.
On the other hand the customer buying residential plots in Bangalore has the flexibility
of building the house immediately or at a later stage, whichever is comfortable
to him. But he has to spend quite a lot of time to get the home designed, source
the raw materials, build the home and manage the manpower.
When a person chooses to buy a site in Bangalore,
especially, in rapidly developing areas, then he can reap rich benefits after
few years. When buying a site in a
developing area of Bangalore the buyer has to pay lesser amount compared to
developed areas of Bangalore. But after a while, when the area witnesses rapid
growth and there is a huge influx of people, then the price of the land in that
part of Bangalore keeps appreciating at a faster pace. It is not the same with
flats because flats become worn out after few years and its value deteriorates
compared to a plot in Bangalore.
The constructed home on plots carries the
value of home along with the land, while a flat carries just the value of total
carpet area along with the common area of an apartment. In some respects buying a flat helps the
customers to gain tax benefits from the time of buying it, but, this doesn’t
hold same with buying residential land plots.
The customer will get the tax benefit only when he finishes constructing a home
at that place.
There are few more downsides of buying a
flat. The government regards one flat as a place of residing while any other
flat apart from it, will be considered as a source of income, especially, in
the form of rental. This rental amount is taxable to the customers. But the
plots are not subjected to this type of a tax unless the customer has rented it
out.
Though, both the sides of this argument carry
pros and cons. The amount of time and energy spent on maintaining a plot in Bangalore is much lesser
compared to the flats that are rented out. Thus, people can confidently buy sites in Bangalore and hope for better returns,
but, they need to consult a lawyer in regards with the authenticity of the
paper.
