Apartment or society which is best for investment

Introduction

When a builder completes a residential project and transfers the possession of the flats or apartments to the homebuyers, the homebuyers receive the ownership rights and other interests in such property and specific responsibilities towards the management of the residential building itself. To ensure the long and quiet enjoyment of the residential building and the supporting amenities, the homeowners need to maintain the structure and manage the amenities efficiently. However, one homeowner cannot have all these responsibilities, and for this reason, the homeowners form a cooperative society that works on the building property i.e. Blue World City. With the formation of a collective society general body and a managing committee, the homeowners ensure that these bodies manage the building affairs and property daily.

Difference between Ownership of Apartment and Society

Using increased FSI for future

The builder aims to use the increased FSI, which the govt will award. For that area in the future. If the housing Society is created, the increased FSI will be owned by the society, and the builder does not have any legal right. In the case of Apartment, the builder owns that increased FSI and can utilize it anywhere. Thus the builder would keep taking advantage of the FSI increase throughout the coming days.

Ownership of open spaces

In any apartment, the builder reserves the ownership of the open spaces, which are not the part of saleable area. For instance, Terrace or any open parking/stairs space not included in the commercial area. In the housing Society case, the builder might be able to have right in any of such areas and must hand everything to the society.

Rules of ‘Society

Society’s rule is binding for all the residents, and nobody can follow their whims. For example, if the society wasn’t to ban any objectionable commercial activities in the flats (such as noise-making music classes or using the flat for criminal activities, etc.) or not to rent out to unmarried people, all the residents must follow the rules. But if it is an Apartment, owners may violate the apartment rules, and the apartment body may file a separate case in the civil court. While the entire society conflicts are resolved in a special court (the ones for matters of cooperative society) and hence they are fast resolved, the Apartment matters have to be handled by the ordinary Civil Court, and therefore they may typically take years or decades to resolve.

Decision

When several buildings go for redevelopment after two or three decades, the society’s decision would be final, and hence the society members will have negotiation power with the builder at that time i.e. Park View City. But in the case of Apartments, then every resident needs to have consent, and hence it goes into an endless delay because of a lack of a joint decision acceptable to everybody. In Islamabad, there are many instances where one has to forcefully vacate the building due to a court order. In case of any delay, they may become unlivable. While the decisions are taken on the basis of the majority in society, the Apartment goes with a rule of acceptable by everyone. 

Property holders’ authority 

Society is the property owner, and all the holders of properties are its members. Therefore, all the property holders must have an equal share in the property of the society. Nothing common should be reserved for anybody. In an Apartment, the share of the property holder is different (proportionate) according to their area of Flat occupation. The members must have reservations, such as parking, shared Terrace, and easement rights. In case of any excess, FSI is available or would be available later. Till then, the builder may reserve it for himself and utilize it at any other place. 

Conclusion

The only difference between the Apartment and society is that it is the owner of the property in society, and all the property holders are its tenants. So, all the property holders will have an equal share in the property of the society. Contrary to that, the share of property holders is much different in Apartment as per the occupational area. But the major drawback is that there are fewer parking spaces and easement rights. So, a society must be a better option for investment like Forest Town. For more details about apartments, please visit the office of Estate Land Marketing.

Also Read: Detailed Comparison Between Mixer Grinder and Wet Grinder.