If you are confused about whether to buy an apartment or plot, that means you’re on the right track. You’re not the only person who faces this dilemma. Buying an apartment or plot has its own set of advantages and disadvantages, pros and cons, and merits and demerits. The main area of concern is your investment. Today, the houses have shrunk in size but their value has gone up. Here, we will discuss whether to buy a plot or an apartment and the things to consider while buying.
What is the investment difference between Apartment and Plot?
Though the apartment culture has outgrown the residential market, the potential buyers continue to be in a dilemma when it comes to investing in a plot or a flat. Whenever buying an apartment or a plot, you have to gauge many aspects such as the value of the building, asset appreciation, financial gain, monetary help, etc. Whenever you are going to buy real estate properties, you need to think about what you’re really looking for whether to gain regular returns or better appreciation over time. If you want to invest in real estate property, it is important for you not to stretch beyond your limit. There is hardly any difference between buying a lot or a flat.
1) Smart Investment Options:
If you’re going to purchase a plot, then you’re going to buy it from your savings or apply for a home loan. But the biggest advantage of buying a flat is that you can stay in that home from starting and can save a huge amount of rentals. You can buy a plot with a home loan. But it can be costly compared to buying an apartment of the same size.
The plot can give you opportunities to build the house as per your likes and dislikes. In major cities, the land cost is very high compared to a flat. Of course, in small cities, the land cost is comparatively less and you can acquire a good portion of the plot. In the case of the apartment, you will invest a fixed amount and the rest depends on the builder. When you’re buying a plot, there are a lot of formalities that you have to fulfill such as civic body permissions and clearances. Then you may have to create a structure as per the permit limits.
2) Good Resale Value:
Today, the apartments for sale offer wide-ranging facilities so that they will attract real estate buyers. The cost of buying an apartment compared to a plot is mainly affected by the location of the property and surroundings. Compared to the plots, the price appreciation of the flats is less when it comes to the depreciation of the structure over time. On the other hand, a wealthy buyer can buy a plot for investment purposes and can build an apartment or go on selling as individual plots.
3) Legal Issues:
One of the major areas of concern associated with a plot is legal issues. When you decide to buy a plot, it is always better to buy the land in gated communities as the builder will take care of legal and litigation issues. Make sure you buy a plot; you should buy it with RERA registered so that you can have transparency in all the transactions.
4) Other Benefits:
Buying a plot or apartment is always challenging. Irrespective of the financial status of the buyer, there would be some extra cash benefits when it comes to govt schemes and tax benefits. The major banks are giving loans on reasonable interest rates to buy the apartments but for the plots, it can be cumbersome.
Buying both apartment and plot have their own set of pros and cons. It all comes to an individual deciding what works best for you.