Plot vs. flat? Are you stuck in a dilemma considering which option to choose? When it comes to buying a flat or a piece of land, buyers often get confused. They find it really challenging to invest their money in any of these two.
If that’s the same case with you, no worries. We can help you make a well-informed choice between plot and flat. This blog features some of the key factors and practical aspects that will guide you in investing your money wisely. Let’s check it out.
Comparison between plot and flat
Before you take any decision, let’s check out the comparison between a flat and plot from investment’s point of view.
Flexibility:
When you buy a plot for sale in Lucknow or any other location, you get the freedom to build a house or commercial building per your needs. On the contrary, in a flat, you don’t get any flexibility since it comes pre-built. You can only modify it per your needs.
Income potential:
You can rent out your land only after building a commercial or personal structure on a plot. Since flats come pre-built, you can easily rent it out for months or years.
Taxation:
You can claim tax benefits only after constructing a building on a plot. Whereas in the case of owning a flat, you can claim tax benefits on loan interests and principal repayments.
Appreciation:
Plots have a higher rate of appreciation since lands are limited. The flat appreciation takes place by taking many factors into consideration along with its location.
Financial assistance: It’s challenging to get a loan sanctioned on a plot. But it’s easy to get a loan on an apartment.
What factors influence the property investment decisions
Here are some factors that influence the investment decision. Before making a final purchase decision, it’s always helpful to consider them.
Location:
The location of a property influences its value no matter whether it is a plot or an apartment. For example, the resale value of Jashn Elevate by Jashn Realty in Sushant Golf City, Lucknow will be higher. The project surrounds some of the best neighbourhoods in the city. Besides, it’s close to educational institutes, hospitals, templates, and famous markets.
Likewise, the plot size, soil quality, and closeness to other utilities affect its price. If the housing demand in its vicinity, then it will increase the land price.
Property value:
Plot and flat values increase over time depending on various factors. A new construction in the vicinity, highway construction, metro line, transportation, and many other factors boost the demand.
Modification flexibility
While a plot remains fresh for construction even after so many years, the quality of flat decorates over time. The layout of the flat cannot be changed although it can be maintained. On the other hand, the layout and size of a plot can be modified in the future. It allows for any kind of construction.
Higher returns
Plots tend to get appreciated more quickly than flats. This is because of the limited plots availability in the real estate. Besides, the market stability, proximity to famous locations, and development also influence its appreciation.
Conclusion
It is always considered a wise step to invest in plots and apartments, diversifying your portfolio. It’s always helpful to buy different properties and get benefitted. But before making a final decision, compare all the aspects.
