The second home buyer or investor in Patna normally falls into the dilemma when it comes to investing in land in Patna or an apartment in Patna. Both the investments in Patna have some merits and demerits, but there are a few important points that can help an investor in Patna arrive at a definite stand.
Buying an independent land in Patna means sovereign choice to build a house depending on one’s own requirement and constraints. On the other hand, a flat apartment in Patna is a redesigned, multi-floored construction. The apartment buyer in Patna has lack of freedom to change the shape and size of the construction area. However, it benefits the buyer in matters related to security, accessibility and location advantages.
A comparison between Land Vs Flat investment’s benefits and weaknesses
|Cost||Depends on locality, size and availability of space||Depends on locality, services, accessibility, size, design and developer’s brand|
|Value Appreciation||With space availability vanishing quickly in Patna, it is expected to appreciate very quickly. Flexibility of option to build as per future requirement helps the cost of land and property to increases very fast.||A flat has a limited life span, so its value has a diminishing effect. After a certain period of time, there is stagnancy in the growth. Lack of flexibility in use, modification and expansion are hindrance to a quicker growth versus land|
|Risk||The land is prone to litigations and it is very difficult to come out of it once anyone is involved.||The delay in possession by developer in Patna is one of the most common problems. Quality is often compromised by the developer to control the cost and meet the deadline so the life of flats gets reduced.|
|Bank Assistance||The buyer has limited options to leverage its financial position for buying a land property as banks usually doesn’t provide finance for buying a land/plot.||It’s very easy to take a bank loan for buying a flat in Patna.|
|Regular Income Source/Rental Income||Land generates a very low income if rented and sometimes it is difficult to reoccupy the land if the tenant pushes the property into litigation||Flats are ready to generate handsome income from the first day of taking the possession if it is given on rent. There is less chances of litigation with modern laws in place.|
|Liquidity and future prospect||Land is always in great demand. The value normally appreciates immediately due to zero depreciation on land.||The depreciation on construction reduces the growth rate, therefore its value grows with a diminishing rate.|
No doubt a land has an advantage of assured returns, but it usually needs investment in full and there is no choice of taking leverage on the fund hence overall return is limited up to some level. Flats are very easy to buy and an investor can take leverage on its fund, in conclusion the return is also very good. The possession delay by the builder is a major concern in case of flat investment in Patna. Another big problem could be strengthening interest burden while one invests in multiple flats in Patna on a leveraged financial position at a time of slow-down in economy, however, the land investor doesn’t need to worry in such a situation.
To judge the best investment avenue between a land and flat in Patna, one should first focus on one’s own requirements. If the investor wants to use the property in Patna for his personal use, then land could offer an advantage of usage flexibility and handsome value appreciation in long term. However, if the investor wants to resell the property in Patna after a short period then it is more profitable to take a position in flats in Patna. As an investor is not required to hold the flat for a long term, it also eliminates the depreciation factor. If the investor is a senior citizen or someone who cannot devote much time to maintain the property in Patna then again it is advisable to take the choice of a flat over land.
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