The culture of ready to move in apartments and villas is growing nowadays but as an investor, you might get this question at least once, You must be confused with land and house investments options.
As real estate consultants, we understand that location-wise different property consultants might have different opinions about buying land vs a house for investment. Because the location is the biggest factor in real estate which can flip your investment decision.
Both the investments have some Pros and Cons, but there are a few important points that can help an investor arrive at a confirmed stand.
Why is it better to buy land over a house for investment?
Best Location = Best Returns
If you are willing to wait for a long time to get the best returns, then one should choose the lands in the outskirts of the city as projects are usually planned outside.
Deciding the correct location to invest in can have a tremendously positive impact on your returns.
Buy a plot where development is possible in the future and the area offers great civic infrastructure.
We hope, these points will be useful if you are in Delima of choosing land and house as an investment option.
With the comparison of land and houses, the price appreciation of land is more than houses. In general, the price appreciation of a property can depend on a variety of factors, but when we are talking about land and house appreciation, the land is getting more price appreciation value because of the demand and supply gap. Vanishing the availability of space is the main reason for this gap.
In the case of the built-up property (house/flat) value keeps going down over the years due to usage and resulting deterioration.
Investors should invest in such deals with the goal of selling them later when the supply is low, in order to benefit from the price appreciation of the property.
For maintaining the house/flat’s values, one has to regularly invest in its maintenance but for land, there is no such extra cost for its maintenance.
If the land type is agricultural then you will need the Maintenance which can be worth it if you are making money out of it.
When we are investing in land, you are your own boss (So long as you are following the local government policies and norms). The investor will be free to take any flexible decision for developing it.
While in houses/flats, there will be a lot of difficulty in making changes as per your need.
You can also rent out your land to commercial enterprises which can generate rental income.
Let’s have a quick look at the below points that one should know before investing in land property.
- If you are thinking of saving tax by having a loan against the purchase of land, then you must drop that plan because you can’t save your tax discussion until and unless you start construction on it.
- Buying land is not a good option if you want income or a return on investment in the present. If you are willing to wait for its best appreciating values, then you can go ahead.
- Before you are making a final deal, do a basic background check. If you are busy and not able to do proper research, it is always better to prefer consulting real estate consultants.
Planning to get land in Bangalore? Check out our latest blog: “Where to buy agricultural land in Bangalore?”
Always remember “If there is anything on Earth you can buy and sustain is a piece of Earth itself”. Stay connected with OwnersTown for upcoming blogs and updates.