Plots in Layout / Flat In Apartment

TGS Constructions Pvt.Ltd

The reality sector of India came a long way to become one

of the fastest growing real estate markets of the world. It is

successfully attracting the domestic as well as international

investors. The growth articulated mainly because of the

large population, rising income and the majority of mid

budgeted segment of population. The sector would attract

more NRI investments in near future with the relaxed FDI

norms and Bangalore is expected to be the most preferred

place for property investors. Adding more the year 2015

witnessed a couple of favorable changes in real estate bills

which garnished sufficient growth in the recent times.

Introduction

Quick learns

• What are the growth drivers of Real

Estate India?

• How to find the right asset for regular

income?

• Comparing Plots in Layouts and Flats in

Apartments as investment.

• Which one is better for residential

purpose?

The Growth Drivers For Indian

Real Estate

Internatio

nal

Tourist

Medical

tourist

New

streams

of

Business

Increasin

g Young

BuyersRising

FDI

Solid

Demogra

phy

Changes

in Fiscal

Policy

More Mid

Income

Groups

Changes

in Real

Estate

Bill

Growing

Tourism

Easy

Finance

Increasin

g

Nuclear

Families

Indian Real

Estate

Finding Right asset for

regular IncomeBuying property is a tough decision as it racks your head to

decide whether to buy a flat in apartment, an individual

house or a plot in a layout. When you are buying property to

make it a source of income it becomes more tougher.

However Each of them has their own merits and demerits

and it is up to the consumer to decide which one is better for

him.

Check your Comfort Zone

In case of an apartment you don’t have to

hire an architect or have to run behind the

local authorities to get construction

approvals. But land plots has a big plus as

you will get possession of the land way

before than a flat.

Lag of Appreciation

Both for flats and plots, location is the key

for value appreciation where as land value

is not going to depreciate but flat value will

get depreciated with the passage of time.

Tax and Interest SopsAs a flat owner you are eligible for an

exemption in tax to an amount up to 1.5

Lakh where as on holding a plot you are

not eligible for any tax rebates but still you

can apply for the interest paid.

Details Plots in land / Layouts Flats in Apartments

Cost Depends on the locality, plot size and

demand of the area.

Depending on the locality, accessibility, designs and

brand value of the developer.

Value

appreciation.

Depending the availability of space

which is vanishing in cities, it is

expected to appreciate very quickly.

Flexibility of construction make land to

get quick appreciation.

A flat has a diminishing effect as it has a limited life

span. With the passage of time, the growth sticks.

lack of flexibility in use, renovation and extensions

are the limitations to quick growth.

Risk The land tends more litigations and it is

very difficult to come out from it once

anyone claimed on it.

The delay in project completion is one of the major

problems. Very often it is seen that most of the

builders compromise in their quality in order to

meet with the dead line or to control the cost of the

project.

Bank Assistance The buyer has only few options to

leverage its financial position for

buying a land property as banks

doesn’t provide finance to buy land

property.

Taking a bank loan for flats is quite easy from all

bank if the builder has a good reputation.

Regular Income

sources

Land property generates a hardly any

income if rented and it is difficult to

reoccupy the land if the tenant claim on

the property for litigation.

Flats are ready to generate good income from the

date of possession if given on rent. There is hardly

any chances of litigation today with new laws.

Future prospects Land is always been in great demand as

the value of it appreciates immediately

due to no depreciation on land.

Because of depreciation in construction it reduces

the growth rate.

What is better for residential purpose

Plots/Flats?

There are two types of people living in the world,

one who loves to live in flats and other is who

loves to live in individual houses. So which option

is better for residential purpose? Well there is no

specific argument to prove one is better than the

other. It depends on your living style and

preference which figures out your need.

Flat in apartment Plots in layouts or individual house

Flats in apartments are

considerably small and are

restricted to modify.

Though it is bigger but bigger

places always ask for high

maintenance costs.

Flats come with a lot of neighbors

who may not be very friendly with

you.

You will have more freedom of

living and there won’t be any

curious eyes to look inside your

home.

Although there is a dedicated

security guard at the front gate the

burglars can still creep in and take

the advantage of many people

coming and going inside the

buildings.

Less security, and an additional

burden for you to secure your

family from unwanted visitors,

salesmen and trespassers.

Buying flats for residential

purpose is not an option for you if

you are a pet lover.

House are much better place for

throwing parties frequently.

Flats come with your own parking

lot and if your friends or relatives

visits your place they can also use

the parking lot.

Finding a parking place near your

house if it is located near any

crowded place will be a difficult

task for your friends and relatives.

B

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Conclusion

“Both Plots in Land and Flat in Apartment has their

own pros and cons, one has to access his needs

and decide which one is ideal for him”