Should you buy a Villa or a Luxury Apartment?

Nov 9, 2017

While villas and apartments each have their justifiable share of benefits and drawbacks, some angles to consider are those of security, community, facilities etc. Whereas villas offer space and freedom to personalize your space completely, flats offer more in terms of higher security, access to club facilities, easy rentals and more. There are no definitive answers to the villa vs apartment debate; you could, for example decide on a villa during a gated residential area, that offers as much security, facilities, easy management and an equal sense of community as an apartment complex.

The most preferred way of selecting a property is hunting for one at a great location. And justifiably so. Selecting a better location definitely gives you a better return on your investment. Sky-high rates in metros compel most homebuyers to look at apartments as their preferred choice as these come much cheaper than villas. While it is common knowledge that the latter comes at a price, there are some marked differences between the two.

1. Lifestyle Amenities: While an apartment property comes with added values, such as security, parking spaces, power back-up, water systems and fire safety mechanism in place, an independent property needs extra effort for setting up of these services. This would also include an extra cost. It is estimated that one needs to spend 2-3 per cent of the total property value on these amenities around an independent villa property. This would include setting up of a small power back-up in the form of an inverter or a generator set, and your own water mechanism. Security will still remain a constraint. On the contrary, in an apartment complex, the developer provides all these in advance for the first 2 to 3 years. Later, the management of services is taken over by the society.

2.Loans: In case you are buying the property by taking a home loan, it is easier to get the loan for an apartment than an independent property. Lending banks often prepare a list of sanctioned projects where a buyer can easily get his loan approved. However, banks sanction loans for independent properties only after strict scrutiny of borrowers. The lending is difficult in the case of independent properties also because of the share of unaccounted cash component. Moreover, it is difficult to ascertain the value of an independent house. In case you plan to buy a plot, be aware of the fact that banks in India provide only 60-70 per cent of the total plot value. You will have to arrange the rest of the amount, including that for the stamp duty and registration charges. However, banks do provide construction loan over and above this amount.

3. Maintenance cost: Once you start living in your own house, the property needs constant efforts for maintenance, cleanliness and construction & repair. The cost of maintaining an independent house is always much more than that required for an apartment, as the maintenance is taken care by the society in an apartment complex. And because of the pooled resources in a residential complex, the cost of services is also substantially less.

4. Resale:Apartments sell faster. So if you decide to sell your property at a later stage, it would be easier to sell an apartment. Within apartments, two-bedroom and three-bedroom apartments are most sought after.

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