flat or a plot?

What is better buying a flat or a plot?


With skyrocketing inflation, rapid urbanization, and rampant industrialization. The real-estate business has a colossal amount of opportunities to offer people to generate income and it can be done either by buying, investing in a property, or leasing out the property. Undoubtedly, the real-estate business guaranteed one long-term and fixed income. People generally get panic and face dilemmas in where to invest money. Should we invest in a plot or in a flat?


This process gets even more tedious with the later procedures, once you have made up your mind to invest either in a plot or in a flat. Both have their own pros and cons however, the key is to analyze one own requirements and develop a shrewd understanding of one cash flow and financial status. And most importantly,  what seems more convenient and gratifying to the person.


Nowadays people do have a thing for an apartment and they have somewhere taken over the residential market in major cities of India. However, people still relish buying a plot and giving them a structure and a design as per their dream house. Buying an independent land this straight means you are in the cockpit. You will ultimately and eventually have full control from choosing the high-caliber material to what quality of cement is going to use in laying the foundation of your dream home.


On the other hand, a flat/apartment is re-designed and has multi-floored construction. The apartment buyer has a  lack of freedom and zero participation in the modification of the same. Hence, one literally needs to understand the nature of both investments before actually investing hard-earned money in any of the two.


Various parameters can be used to analyze the advantages and disadvantages of the two choices:-

1. APPRECIATION IN VALUE:-  A plot is expected to appreciate higher than the flat due to the lack of availability of space in the cities and rampant industrialization. If you are planning to buy a plot you need to evaluate the property in terms of growth in the future. For instance, keep a check on upcoming infrastructure projects in the nearby location. This will definitely go to increase the value of plots.


2. FLEXIBILITY:– One of the obvious advantages of being an owner of a plot is that you are liberated to design it as per your choices. As an owner, you will relish every bit of adoring it. Whereas you are most likely to lose the same when it comes to flats as they are already structured and designed. And the expansion and modification seem implausible.


3. RENTAL INCOME:– unfortunately rental income in the plot is significantly low and has a higher risk of litigation. On the other hand, flat generates higher rentals. In addition to that recurring income from the leased-out apartments is a good option that many people take advantage of late in their working life and post their retirement


4. FINANCIAL ASSISTANCE:- Getting financial help for buying a plot is difficult as compared to flats since financial institutions tend to avoid giving home loans for the purchase of plots.


5. DELIVERY:- While it may take some months or even years to get possession of an apartment, plots are usually ready for possession.


6. TAX:- The taxation system in both a flat and a plot is not similar. When you take a home loan to buy a flat, the monthly loan repayment allows you to save tax whereas, in the case of plots, tax deduction on interest is allowed only from the time the construction is completed.



Thus, from the above-mentioned points, we can state that both flat and plot have their own pros and cons, so the best approach is to analyze one asset, liabilities, and most importantly the availability of funds. Invest in a plot if you are only looking to invest your fund for some time until you are prepared to invest in a flat, a plot in a location that will have great upcoming infrastructure will be a great idea. However, if you are looking for regular returns, you probably want to invest in a flat