Whenever people get a call for buying a PLOT. There will always be a confusion what to do with the PLOT especially when it is vacant.
People think it is weakest investment because.
- It doesn’t produce income
- Don’t know more about the documents & how to check it.
- What to do with a PLOT.
We are giving certain reasons why one should go for a PLOT.
- You don’t need to do anything to a property.
Forget about construction/ renovation. You only need to know that whether it is suitable for 1st home in coming years or a weekend home. If you able to conclude this your half battle is won.
- PLOT is a perfect Investment.
You will have to deal with tenants, maintenance problems in a building & other 100 issues which comes with owning a building / Flat. PLOT doesn’t involve any of these.
- Cheaper in Long term Investment.
When you decided to go for a PLOT for right price, tax is nominal; no utility bills need to pay so like for a Building/Flat.
- It gives piece of Mind.
Once you get all the papers in your hand, it’s a Tangible asset it never depreciate, can’t get broken or stolen like other assets like Jewellery.
- You can enjoy it.
When compare to other assets like funds, FD, shares, When you go for a piece of PLOT you can enjoy it by visiting it as a picnic spot, or by constructing weekend home to go out with family.
- It can fulfill your dreams.
As entry price is lowest, anyone with a small fund can purchase a piece of PLOT, whether their dream is to give good education to their children, or shift in a bigger house. It is also said that investment in a right PLOT & your work tenure may give the same return.
- They aren’t making it any more out of it.
Finally the reality is PLOT is extremely valuable resources with limited quantity available as it can’t be manufactured or produced.
Disadvantages in Owning an Apartment
- The biggest drawback is that you cannot do any independent add-on construction or alterations.
- The maintenance you need to pay to the owners’ association is a regular monthly cash outgo whether you use the amenities or not. The maintenance charges keep increasing year after year.
- One of the main components of maintenance can be water charges. The water requirement is massive in an apartment complex and the civic authorities arrangements for water supply may have to be supplemented by buying water from private vendors at very high cost. It is not possible to control water wastage and water charges end up as a major component of maintenance. Thoughtless residents contribute to wastage of electricity as well in their misuse of elevators, common lighting, elevator fans left on etc. People somehow do not realize that nothing is free, and the care you take for personal expenses need to be there when you use the common facilities as well!
- You are forced to live in very close proximity with your neighbours even if you abhor them! Some neighbours can be pretty bad!
- Your immediate neighbour’s wall may be your wall too! A noisy neighbour who believes in frequent parties or with a brood of noisy children may cause you lot of problems and you will have little or no control over it other than complaining to the association and making your neighbour your number one enemy.
- You are bound by decisions taken by your owners’ association even if you personally disagree with them.
- You can at the most keep potted plants in your balcony. You cannot dream of having a garden and growing your favourite fruits and vegetables.
- Keeping pets is difficult if other residents have problems with it and complain about it.
- While regular maintenance is carried out, major works like repainting the apartment building etc., cost a packet and may deplete the corpus fund requiring further contributions in lump sum.
- One has no control over the quality of construction and material used by the builder. A builder bent on maximizing profits at any cost may ultimately hand you a lemon! In other words, an unscrupulous builder may end up providing you a substandard dwelling which may even be a hazard to live in! The frequent media coverage of building collapses due to shoddy constructions should be a warning and make one cautious when selecting the project of an unknown builder.
- If there are legal hassles which was not disclosed by the builder like large scale deviations, illegal construction etc. your dream dwelling may even be demolished by the authorities or eviction orders issued.
- Human nature being what it is, it is not always hunky dory even in a apartment complex. Sometimes there are groups within groups and infighting which are definitely a negative factor for community well being.
- The biggest advantage in owning an independent house is that you have control over the design and architecture of the house along with cost effective use of materials used and the quality. How much of the land is to be used for construction and how much is to be left vacant for gardening or future construction is your decision.
- Longevity of an apartment cannot be compared to an independent house because in the latter case, since the land belongs to an individual or joint owners, the building can be refurbished or demolished and rebuilt. In the case of an apartment complex, all the owners have to agree before any such decision can be taken.