Plot vs Flat - Which Is the Best Investment for a Long Term?

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Introduction

• When investing in a property, you get an option
  to choose between a plot or flat.
• Investing in a plot or flat comes with a set of
  challenges and benefits. Both carry pros and
  cons.
• If youre planning to invest in the city area,
  apartments are the best option that can yield
  good returns once the real estate price of the
  locality spikes up.
• A flat always scores higher compared to a plot
  for investment.

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Introduction (contd.)

• If you want to build a house for your future
  settlement and requires freedom to resize or
  change the construction, buying a plot and
  building your own home over it will be the best
  option for you.
• A flat, on the other hand, has certain
  limitations on the size of the construction.

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Comparison between a flat and a plot

• Value of Appreciation
• Plot
• With the lack of space in the city and low
  occupancy in the future, the value of
  appreciation for flats and plots have increased.
• Flat
• A flat, compared to a plot, has a limited
  lifespan. The value may increase or decrease over
  the course of the period.
• Lack of flexibility for modification and a lot of
  rules made by the society doesn't make a flat the
  first choice for investment.

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Comparison between a flat and a plot (contd.)

• 2. Possession
• Plot
• When purchasing a plot, theres no delay in
  getting a plot as your possession.
• Flat
• In case of a flat, delay in possession of the
  flat key is evident.
• There are instances where the projects have got
  delayed due to certain objection from the local
  body or financial issues. This makes flat a risky
  investment.
• If you're buying a resale flat, then theres no
  delay in possession.

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Comparison between a flat and a plot (contd.)

• 3. Tax
• Plot
• Its a challenge to get a loan for the plot
  investment.
• Few banks like HDFC Plot loans and SBI Realty
  offer loans to purchase a plot.
• The tax benefit is subjective as its allowed
  during the time of construction.

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Comparison between a flat and a plot (contd.)

• Flat
• Getting a home loan in the lowest possible
  interest is now easy.
• Many real estate developers have a tie-up with
  reputed banks for an easy loan application.
• You can avail deduction up to Rs 21.5 lakh for
  the interest you paid for the loan.
• You can also claim Rs 1 lakh deduction for
  repayment of the principal amount.

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• To make a decision on whether to invest in a plot
  or flat, its important to focus on your
  residential needs.
• Do a proper research and plan accordingly so that
  you can benefit in the future by investing in any
  property.
• Know in detail Plot vs Flat - Which Is the Best
  Investment for a Long Term?

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Contact Us 91 8411963033
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