If you are finding it hard to decide whether you should buy an apartment or plot, you are on the right page. Although each option has its own set of pros and cons, buying a plot is a better decision from the investment point of view. In this article, we will take a look at the advantages you can enjoy by purchasing plots. Read on to find out more.
1. Low Acquisition Costs
One of the primary benefits of investing in a plot is that it doesn’t require a big deal of investment. And even if the building has no value, the land owner will have to make payment to get it demolished. Therefore, a building costs more than a piece of land. If you are a first time buyer, you should go for a plot instead of an apartment.
2. Construction Flexibility
If you are looking to purchase an apartment, know that it will be a tradeoff between location, budget, structure or design. It’s important to keep in mind that the apartment may cost more, especially if it’s located in a popular location where the demand for these plots is quite high.
Based on your budget, you can opt for the right design to construct a building on it. If you can’t construct a luxury house at the moment, you can have one built down the road provided there is enough area for construction.
Here it’s important to keep in mind that plot owners share the available floor space with other people. Therefore, they enjoy privacy while sharing the space with others.
4. Reduced Maintenance Cost
If you have a budget constraint, know that you may not be able to construct a house on your plot. However, this comes with the benefit that you won’t need to bear huge maintenance costs associated with apartments.
5. Higher Appreciation Potential
As far as real estate appreciation is concerned, know that the rise in value is associated with plots, not apartments. When you invest in an apartment, the value of the apartment rises on the basis of the Undivided Share of Land (UDS). So, if the one you have bought enjoys more UDS, know that it will go up in value more.
6. Immediate Possession
Today, one of the most common risks is associated with the ownerships of the apartment or plot you have paid for. If the possession gets delayed for some reason, it results in many effects, such as rental income loss, tax benefit loss and pre EMI interest, to name a few. On the other hand, if you own a plot, you won’t have to worry about these risks.
7. No Risks
If the apartment you have bought is built with deviation, it may get demolished. Even if it doesn’t get demolished, you may face problems when selling it again or applying for a loan.
On the other hand, for plot projects, you don’t need to get construction approvals. All you need to do is get layout and title approval the concerned authorities.
So, these are some advantages of buying plots instead of apartments.