Apartment vs Independent House: How to Make The Right Choice
Real estate is something that most individuals invest in; after all, owning a house is something everyone desires. Moreover, a house has always been considered a great asset to diversify one’s portfolio. Usually, the main criteria for purchasing a house is to select a property at an excellent location. The location influences the property value, and selecting a good location gives a better appreciation of one’s investment but that’s not all.
Apart from location, another crucial thing that needs to be considered is the kind of property the house is. While some individuals may opt for an apartment, many prefer independent homes. Typically, properties are more expensive in metros, and this factor compels most buyers to invest in apartments rather than independent houses. Apartments are generally cheaper than independent houses such as an assortment of floors or a villa built on a plot. Given the plethora of permutations and combinations, there are multiple things to consider while buying a house. Although it may seem overwhelming, Indiassetz is here to help and make things easy.
Points to Consider Before Investing
Let us understand some key points to help make your decision of investing in an apartment or an independent house easier.
Amenities come at a price
While an apartment comes with amenities, such as parking spaces, power back-up, fire safety, security, and water systems in place, an independent house requires extra effort to set up these services. This should be considered as an added cost. It is estimated that one must spend around 2-3% of the total property value on such amenities for an independent house.
Home loans are easier to obtain for apartments
If you plan to purchase the property by applying for a home loan, it is a known real estate fact that it is easier to apply and receive a loan for an apartment instead of an independent house. Lending banks generally make a list of projects that have been pre-sanctioned from where an investor can easily get the loan approved. However, these banks sanction loans for independent houses only after strict scrutiny of the borrower and property.
Under-construction properties come with added challenges
Properties still under construction have challenges associated with them. However, problems reduce significantly on investing in an apartment. If one purchases a plot and plans to build a house on it, then it is a long and cumbersome task to finish the construction of the property. However, one has the luxury of time.
Maintenance cost
An independent house needs constant maintenance, repair, and cleaning. It has been observed that the cost of maintaining an apartment is lesser than maintaining an independent property.
Resaleability
Property as an asset class takes time to resell. Various reports suggest that apartments are usually more in demand, so you can sell them faster and at a higher value sooner.
Advantages of Owning an Apartment
One has an opportunity to live in a gated community, make lifelong friendships, and live as a team member. Generally, apartments hold many households which attracts a huge number of businesses that setup close by. Within no time, the area develops and becomes self-sustainable. This, in turn, helps in the appreciation of the property value.
With several amenities, apartments offer access to multiple facilities within the complex.
The appreciation in the property value of an apartment is approximately equal to the initial investment one has made.
Property experts recommend investing in an apartment as opposed to a private house/land as those deals can be more prone to fraud.
Advantages of Owning an Independent House
The main advantage of owning an independent house is that one has control over the architecture and design of the house with cost-effective use of materials and quality.
Longevity is not an issue with an independent house as the land belongs to the landowners and the property can be demolished, rebuilt, or refurbished as and when the owner pleases.
An essential feature of real estate has always been safety. Independent houses in a suburban area protect the owner from noise pollution and crowds; both these factors are very important to most individuals.
An independent house always makes for a great investment as there is excellent appreciation value over time.
If one is weary of nosy neighbours and prying eyes, opting for an independent house is the best choice. You also have the freedom to decide things instead of relying on the apartment association.
Planning to purchase an independent house or an apartment? Look no further, Indiassetz is here to help out. Our team will understand your requirements and help you in identifying the home that makes for a perfect match for you and your family, based on all the parameters mentioned above.