When it comes to investing in a property, you get an option of either a plot or a flat. Undoubtedly, it’s a big dilemma which every property investor goes through, as both carry pros and cons. Investing in a plot or a flat come with their own set of challenges and benefits which every investor should educate with. Indian rural areas have large acres of land which are used for the farming purpose or kept barren. Plot owners usually keep it untouched until the need to sell arise and price the plot rise up. However, when investing in the city area, apartments are the best option that can yield good return once the real estate price of locality spikes up. Flat always score high when it comes to comparing with the plot for investment.
Buying an independent plot is all about the choice if planning to build a house for future settlement and has the freedom to resize, change the construction. Flat, on the other hand, has certain limitations on the size of the construction.
A comparison between flat and plot:
• Value of Appreciation:
Plot– With the lack of space in the city and low occupancy for future, it is expected to appreciate very quickly. The flexibility of option to build the house as per the choice and future requirement helps to use the plot accordingly.
Flat– A flat, compared to the plot has a limited lifespan. The value may increase or decrease over the course of the period. Lack of flexibility for modification and number of society rules makes flat least choice to invest.
Plot: The entire plot belongs to you and there is no delay in getting the possession once sold out to the buyer.
Flat: In case of flat, a delay in possession of getting the flat key is evident. There are cases where the projects get delayed to certain objection from the local body or financial issues. This makes flat a risky investment. However, if buying a resale flat, then there is no delay in possession case.
Plot: It’s a challenge to get a loan for the plot investment. However, few banks like HDFC Plot loans and SBI Realty offer loans to purchase a plot. Moreover, the tax benefit is subjective as it is allowed during the time of construction.
Flat: Getting a home loan in lowest possible interest is now easy. Many real estate developers have a tie-up with reputed banks for an easy loan application. Moreover, you can avail for deduction of up to Rs 1.5 lakh for the interest you paid for the loan. Additionally, you can claim Rs 1 lakh deduction for repayment of the principal amount.
To make a decision on whether to invest in a plot or flat, it is important to focus on your need. Do a proper research and plan according to the future benefit you will earn by investing on any of the property.