Quite a puzzle, isn’t it? However, the answer lies in understanding your requirements and prioritizing accordingly. It is therefore important to know why people want to make the purchase. Some may do it to earn a good return on their investment, while some may want to leave something for their children. The deed must therefore be governed by the intent.
Read on as we outline 4 factors worth considering before taking the plunge.
Financial and tax benefits
Buying a plot hardly gives you any tax advantage, but if you opt for a home loan, you are assured of plenty of tax exemptions. However, in the case of flats, you have to be happy with what is served to you, but in the case of plots, you can build exactly to your specifications that you have set yourself up for. In either case, however, it is important to consider the location, neighborhood and infrastructure before making the switch.
Safety and legality
Plots can be encroached on so one must ensure that his land is fenced and adequately secured. In addition, when purchasing the plot, it is important to ensure that your purchase is not a disputed property. Flats are generally free of such issues as the owner has already done it for you, but in the case of flats you should check all documents before purchasing.
Income from the purchase
Flats can be rented out for immediate return. Plots cannot provide rental income, but their value increases faster than flats. In the end, it all comes down to your need. If you are looking for short term gains then flats are indeed a better bet. However, if you plan on a long-term basis, plots are a viable option as they are your best choice for building assets.
The resale value of the flat is generally lower than that of the lots due to the aging of the building and general wear and tear. However, plots of land, especially in preferred locations, would increase in value very quickly. So, if your intention is a high resale value, then lots are undoubtedly a better option.
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