Plot or Flat: Here's How You Can Decide Which Is the Better Investment Option for You

Plot or Flat: Here's How You Can Decide Which Is the Better Investment Option for You

When it comes to investments in real estate, there is always a dilemma whether to invest in plots or flats. Though both have its equal share of pros and cons, the deciding factor is the kind of investment you are aiming at.

While a plot gives the buyer the freedom to build and design the total house, flats are often restricted when it comes to the scope of the planning and design. Of course, if you are looking at it as an investment, then below given are some of the factors to consider:

What kind of returns on the property are you expecting?

If you are looking at as some kind of income generated from it constantly, then flats are the best option for you. You can rent out the flats easily and at a very fair price too, which will easily let you get some income from your investment.

On the other hand, it is difficult to get a fair share of rent comparatively from an individual house, if you are planning to build one on the plot bought. But if your goal is getting the returns of your investment after some years, then the plots are better.

How will the appreciations be?

The appreciation of the land increases through a large margin when compared to flats. As the land values are appreciating and the demand for land is greatly increasing, there are assured chances that you will be able to get a good amount in the future when you sell your land. If you are trying to sell your flat in a few years, there are possibilities of lesser returns as the condition of the flat and the age of the flat will play a major deterrent in its appreciation although the demand and the locality of the flat will boost it.

How much are you ready to invest?

As the returns from the flats are more, it is natural than the investment should also be more. You will need to have a considerable amount of money to buy a plot and if you are planning to construct on it, then your investments will increase by folds. Compared to plots, the investment in flats is less. With a decent amount of money, you can invest in a good flat in a major location of a city and immediately start getting the returns from it.

If you are taking a loan for buying a flat, the monthly loan repayment will let you save the tax that you need to pay. But when you take a loan for buying a flat, your tax will be deducted only after the construction is completed.

Making the final decision

Based on the intentions of your investment, you can make an informed decision. Both have many advantages but is up to you to decide based on your preferred choice of income and the amount of money you are ready to invest.