Over the years, houses have been a great form of investment. They yield commendable returns whether in the form of resale or renting out. But as builders came in with several properties like villa, flat, apartment, rowhouses, bungalow; one question has been getting more difficult to answer. “Which property should I invest in?”
Nowadays, there is tough competition between villa vs apartment. Apartments are very common in cities, whereas on the other hand villas are mostly found in the suburbs. They both come with their share of benefits and drawbacks, but the final decision depends on our preference and personal choice.
However, here is a quick breakdown of the consideration for villas and apartments that will help you make the final decision.
Villa Vs Apartment: What Factors Should You Consider?
If you are thinking about buying a property, and are confused between villa vs apartment, there are various factors that you must take into consideration. Questions like- which is costlier, which has more privacy, which is location friendly and so are- are very common. Let’s look at the list of factors that must be taken into consideration before you take a step towards a decision.
- Rent and rent yield
- Freedom to customize
Let us understand the factors concerning villas and apartments.
Villa Community: Pros And Cons
Villas are independent houses that are grouped providing the benefits of housing societies. These independent houses are grouped based on their size and amenities and are also provided with a clubhouse or other facilities. These are usually situated in the suburbs.
Here are a few benefits of the villa community:
Who doesn’t like a spacious area to live in? Villa communities do just that. Independent villas are spacious and there’s space around the house as well. This will be an added advantage if you have kids, who can play around and also an opportunity for private gardens, pets, and even extra car parking.
Villas often yield higher returns as long-term (seven or more years) investment as compared to apartments. The prices of villas appreciate at a much higher rate than apartments.
No one likes to be overheard through the walls, listening to footfalls on your ceiling, or listening to complaints when your music is a tad bit louder than normal. Villas offer you the private space that you deserve as compared to apartments.
Villas are mostly located in a remote location, that is the suburbs or outskirts of the city. Thus, you have an independent house tucked away from the hustle-bustle of the city at the same time providing you with all the benefits of community living. As a villa is situated remotely, the level of air and sound pollution is much less.
There are also a few potential drawbacks of the villa community:
Well, you saw this one coming, didn’t you? You get land and a house for yourself, and this will certainly be reflected in the price. On comparing, it can be seen that a villa would be 3 to 5 times costlier than the price of a 2BHK in the same area.
People generally tend to prefer to rent houses that are in the middle of a city because of easier accessibility of goods and transport. As villas are mostly tucked away from the rush of the city, it is unlikely for them to prefer villas over apartments.
In case you find tenants, the rent would be almost equal or even less than apartments in busy areas. Thus, your annual rent yield would be lower than that of an apartment.
Unlike apartment complexes, getting the maintenance work done both inside and outside the house becomes the headache of the resident.
Most villas are situated far from the city, in the suburbs. If your workplace and your kids’ school are inside the city, then buying a villa wouldn’t be a wise choice.
Apartment Complex: Pros And Cons
If you take a look around, chances are you’ll see more apartment complexes as compared to villa communities. In general, apartments can provide housing for twice the number of people that a villa can in approximately the same area of space. Apartments are more economical and also provide a host of other benefits, which makes them hugely popular.
The benefits of apartments are listed below:
It is very unlikely that a villa community is unsafe. But in the case of an apartment complex people stay very close to each other and even share walls. The advantage of this is that any cry for help, crash, or any alarming incidents have a better chance to be noticed by neighbors. The very idea of people living nearby often discourages thieves and burglars, thus making an apartment a safer option.
Since people live close to each other in an apartment, there is a higher chance of them becoming family-like. Celebrations and vacations become much more fun.
People who migrate often comprise the tenant pool and they’re looking for smaller units to live in. An apartment is a very popular choice among them. Also, rent yield is often higher than that of villas.
Now, let's take a look at a few cons of an apartment:
Footfalls on the ceiling, leaking food smell, voices from the walls, sounds of vehicles, and complaints when your music is a little louder than usual- not so comforting right? Apartments have very little to no privacy. Imagine having balconies and windows facing into your neighboring units.
If you own an apartment, you’ll only have the unit and the content within. The share of land which you own and the undivided share is often very small.
Not a fan of crowds? Apartments could be difficult for you. Common areas and facilities, like a pool, gym, or clubhouse could be crowded. It could be more difficult to find a place for relaxation during holidays and weekends.
This may sound surprising but a villa community charges a lower maintenance charge than an apartment. Why is the cost of maintenance higher in an apartment complex? The presence of elevators increases usage of common facilities, like gym, pool, clubhouse, lawn, and security leads to higher monthly maintenance.
Villa Vs Apartment: Which Is A Better Choice For You?
The villa vs apartment debate is unending, but when it comes down to the final decision, this is a matter of personal choice. Both have their own set of pros and cons, and there are a lot of other factors to consider. Location, security, privacy, and other amenities play a major role in the decision that you make.
- Rent and rent yield
- Freedom to customize
Here’s a table that’ll help you visualize the difference between villa vs apartment.
|Cost||Costlier||Comparatively less costly|
|Location||Mostly suburban areas||Cities or suburbs|
|Security||Comes at a significant cost||Highly secured|
|Atmosphere||Spacious, less pollution||Pollution is a problem in cities|
|Rent and rent yield||Comparatively low rent yield||Rent yield is higher|
|Customize||Ample options to customize||Limited customizations|
|Accessibility||Away from offices and schools||Close to workplace and schools|
Other options can help, such as row houses, a villa in a gated community, or a semi-independent villa because they merge the advantage of both villas and apartments to provide you with an enhanced living experience.