While apartments are cheaper than independent houses, there are certain advantages of each property type that home buyers must be aware of, before making a purchase
Most homebuyers give a lot of importance to the location and the type of interiors while choosing their homes. A better location promises better appreciation of property investment. When it comes to the type of property, there are few choices for buyers in metro cities, as high real estate prices compel people to look for projects within their budgets. While apartments are cheaper than independent houses, such as villas or independent floors, there are certain advantages of each property type that a home buyer must know of, before making a purchase.
Flat vs house: Amenities
If you are buying an apartment in a housing society, you may get access to all modern amenities, including security, surveillance, parking spaces, power back-up, fire safety mechanisms, etc. but all these facilities come at an additional cost of around 20%-25% of the property’s cost. For independent houses, such amenities are not available and extra effort may be required, for setting up these services. These may include setting up a power back-up system for each room, hiring security staff or installing cameras and arranging for water storage tanks, etc. If your independent home is located in a gated colony, the security system is likely to be arranged by the residents’ welfare association (RWA).
Nowadays, developers are offering mixed residential projects, consisting of flats, as well as plotted developments, where the amenities and facilities are accessible to all owners at a small additional cost. To have the best of both worlds, such plotted options are a great choice.
Flat vs house: Mortgage facility
It is easier to take a home loan for buying an apartment than an independent house. Major banks usually offer pre-approved loans for residential projects. For independent homes, the lending process includes tight scrutiny of all property papers and the borrower’s credit history. Additionally, it may be difficult for a lender to perform the property valuation for an independent house. Consequently, banks provide only up to 70% of the plot’s value as a loan. The remaining amount, including the stamp duty and registration charges, has to be arranged by the borrower. For an apartment, banks usually provide up to 90% of the property’s cost, as a loan.
Flat vs house: Maintenance cost
All properties need constant maintenance and repair. In an apartment, the buyer has to bear monthly maintenance charges, depending on the property’s size. In an independent house, the maintenance cost has to be borne by the owner and it is higher than what would be paid in an apartment. Moreover, in a residential complex, everyone pools in, and therefore, the maintenance charges reduce drastically.
Flats vs house: Saleability
There is no doubt that it takes more time to liquidate a property asset. An independent house is likely to take more time to sell than an apartment, due to its high value. Moreover, it also depends on the demand in the market where the property is located. As apartments are more in demand, owing to their small ticket sizes, it is easier to sell an apartment than a bungalow. However, in tier-II cities where people still prefer independent houses, finding a buyer for an apartment, could be difficult.