INVESTMENT COMPARISON BETWEEN FLATS AND LANDS IN JAIPUR

Invest in Flats or Lands in Jaipur

Today it has become a major point of discussion among the people whether to make investment in Flats or Lands in Jaipur.

I will clear your doubts about the topic in this article and give you a clear vision to make your decisions

ADVANTAGES OF INVESTING ON FLATS IN JAIPUR.

• Additional Property or home in Jaipur.

If you are Investing on Flats in Jaipur that means you already have a home in Jaipur and Flats becomes a additional Property or home for you in Jaipur, where you can do various activities like spending weekend with families, partying with friends and relatives , even can conduct some social activity like Satsangs, etc ..
there are many ways you can utilize this additional property in Jaipur.

• Continuous rental income in Jaipur.

Main reason people invest in Flats is for continuous rental income coming from flats, if one has bought a flat in area where there is demand of rental flats by people who are coming from outside Jaipur to work here or study or any other purpose, than there is good chance to start the rental income from the day one and according to common trends in Jaipur Rental income is Expected between 0.0035 - 0.0050 % of the total flats value depending on the areas.

• Flats Price increment as per market trends in Jaipur.

Flats prices also keep appreciating as per the market trends , demands , locality , approach, construction quality, resale speed, facilities provided by the builder in the particular flats society like security , covered and ample parking ,banquet hall , community center, gym , swimming pool, squash , tennis court, roof top garden, normal walking space with lush green gardens , fountains , kids play zone , indoor games , and many other activities, value increment depends on facilities , more the facilities more will be price increment.

DISADVANTAGES OF INVESTING ON FLATS IN JAIPUR.

• High cost of regular maintenance.

Flats in any building incur a regular & high cost of maintenance , if you have rented out the flat to someone than it is very obvious that it will incur cost of maintaining it , whenever you are changing the tenant ,the new one will always want you to make the Flat look like new , make a new paint , fix all the sanitary , electrical , carpenters problems, if there is any seam coming in roof of the flats because of bad construction quality of builder then you have to bear a very big cost to get it fixed which sometimes is more than the rent which you will get in a year from that tenant . You will always be having a headache with the maintenance of flats.

• Resale of Flats in Jaipur is very slow

Suppose you are trying to sell your Flat in Jaipur than you have to wait for long time because there are many many option available for buyers who are interested in buying flats in Jaipur , Every month new projects are being launched in all the areas of Jaipur and there are many big, small developers who are always looking for  Lands in any area of Jaipur to make multistory building which have many Flats, so the number of flats in Jaipur are much more than the number of land available here in Jaipur.

• Very Low Price Increment in case of Flats in Jaipur.

Flats in Jaipur have a tendency to increase at very slow pace, flats increase 50% less in comparison to the Lands Prices in Jaipur.
Suppose for example if you have brought a Flat in Jaipur in year 2010 @ Rs.1600000/- for 2 bhk approx 1000 square feet size in Mansarovar  in a multistory building, Today if you see its current market price it would have become Rs.2500000/- and if you have made a rental income of say Rs.6400 per month than for 3 years it comes to Rs.230400 that means total 

                

                     Rs.2500000 /- current market price 2013

                  -  Rs.1600000 /-  price in 2010

                 

 difference      Rs.900000 /-  

3 yrs rent   +  Rs.230400/-

              

gross profit:    Rs.1130400/- 

 maintenance -Rs.   115200/- for 3 years period

              

net profit = Rs.10,15,200 /- on an Investment of Rs.16,00,000 /-

that means return on investment becomes 63.45 %

whereas if you would have brought the Land in same Mansarovar  area in 2010 about 130 square yard @Rs.12300 per square yard total of Rs.16,00,000/- then today its current market price will be around Rs.25500 per square yard which means more than double in 3 years ,

                          Rs.3315000 /- current market price 2013

                      -  Rs.1600000 /- price in 2010

               

net profit           Rs. 1715000 /- on an Investment of Rs.16,00,000 /-

                       

that means return on investment almost 107 %

now if you compare 

107% - 63.45 % = 43.55 %  more without any headache of maintenance . 

so my suggestion will be to always prefer to invest in land rather than flats in Jaipur