Apartment Vs Independent House: Which One Is Better?

Selecting an amazing property at a wonderful location is an accepted norm for buying a house. The location has to be good as it promises better appreciation on your investment. Now comes the difficult part—apartments or independent houses. Residential properties having sky-high prices in metro cities generally compel buyers to select an apartment as their choice. Independent properties in the form of a villa or floors built on a plot are more expensive than flats. So which one should you choose to invest your money?

• Facilities come at a cost

An apartment comes with added values like security, parking spaces, power backup, fire safety mechanism, water systems, etc. On the other hand, an independent house requires additional effort for setting up all these amenities, which require an extra cost as well.

However, there are societies where a Residents’ Welfare Association (RWA) is formed and it looks after security-related matters.

On the other hand, in case of an apartment society, all these amenities are provided by the developer in advance for the first couple of years. After that, the RWA takes over the management of services.

• Mortgage

If you don’t have sufficient money and you need to take a home loan to buy a property, then getting the loan for a flat is easier than an independent house.  But as far as loans for independent properties are concerned, banks sanction these only after strict scrutiny of borrowers. Owing to the share of unaccounted cash component, the lending is also tough for independent residential properties. Also, determining the worth of an independent house is not easy.   Banks, however, provide construction loan over and above this sum.

• If buying an under-construction property

There are challenges in case you decide to buy an under-construction property. But the troubles decline noticeably if you invest in an apartment. It would be a long, tiring, and cumbersome task if you plan to buy a plot and then build your house on it from the beginning. However, there is a silver lining here because it depends on you completely by when you need the property completed.

There may be delays in construction if the revenue of the builder is hit due to any reason—cash crunch, poor economic scenario, increasing cost of raw materials and labour, poor sales, etc.

Before buying an apartment or an individual home, you need to keep these parameters in mind. Both have their pros and cons. Make the right choice by doing your groundwork first.

However, you must note that value appreciation largely depends upon the brand value and the location of the property. Hence, you must always choose the right real estate developer to invest real estate in India at the right time for a better value appreciation.

In addition, the latest boom in the real estate industry is being extolled by idealistic investors to earn more returns within a shorter period. This is the reason why numerous people in the present times are planning to invest in real estate in India.