Infra Talk: The dilemma over plot and flat purchase

An investor’s primary concern when it comes to investing in real estate is to choose between a plot of land and a fully constructed flat. Both have their own advantages and disadvantages. While some home-buyers have strong preferences for one of these, many of them might be unsure on which is a better investment option. 

A laid-out plot offers buyers flexibility to build houses as per their future requirement. Basically, plots give you the freedom to change the shape and size of the construction area. Apartments, on the other hand, despite having great architecture, might not be customisable as much as houses constructed on plotted lands. 

Space availability in most cities is vanishing at a rapid speed. With a significant number of people preferring to construct their house, the value of plots is expected to appreciate quickly. Also, if you are planning to invest in real estate for resale purposes, plots are the best option for appreciation in value.

While plots require a lot of work on acquiring unencumbered deeds, apartments may have risks like delay in delivery, building quality, etc. However, no matter which kind of real estate investment you are making, it is advisable to buy the plots or apartments from credible builders.

If you are planning to buy plots, banks provide you with very limited financial options. Constructed houses, be it apartments or villas, have a clear advantage when it comes to bank assistance. Not only are the home loans easy to avail of for the buyers, the associated tax benefits when buying a flat is comparatively higher. 

Plots generate very little or no income on a regular basis. However, buying apartments that are ready to occupy generate a regular rental income. If you are planning your second home, then apartments are the best option as you can rent or lease one of your houses and earn a steady rental income.