Quite a puzzle, isn’t it? However, the answer lies in understanding your requirements and prioritizing them accordingly. It is therefore important to know why one wants to make the purchase. Some might be doing it to earn a good return on their investment while some might want to leave something for their children. The deed, therefore, has to be governed by the intention.
Read on as we pitch forth 4 factors worth considering before making the move.
Financial & Taxation Benefits
Purchasing a plot would hardly get you any tax benefits, however, when you opt for a home loan you are assured of plenty of tax exemptions. However, in cases of flats, you will have to be satisfied with whatever is served to you but in the case of plots, you can construct what you have set out for exactly as per your specifications. However, in both cases, it is important to consider the locality, neighborhood, and infrastructure before making the move.
Safety & Legalities
Plots can be encroached upon so one must ensure that his land is gated and adequately secured. Moreover, while purchasing the plot it is important to ensure that your purchase is not a disputed property. Flats are generally free from such issues as the owner already has done it for you however one must verify all the documents before the purchase in the case of flats.
Earnings from the Purchase
Flats can be rented out for immediate returns. Plots cannot offer rental income but their value increases faster than flats. In the end, everything boils down to your requirement. If you are looking for short-term gains then flats indeed are a better bet. However, if you are planning long term, plots present a viable option as they are your best bet for building assets.
The resale value of the flat is generally less than plots because of the building getting older and general wear and tear. However, plots, particularly in preferred locations, would grow in value very quickly. So, if your intention is high resale value then plots undoubtedly would be a better option.
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