Investments in both flats and plots come with their own set of merits and shortcomings. It is therefore imperative for buyers to determine their own set of requirements and decide to invest accordingly.
A plot of land affords the buyer the choice of building the house to his own liking. Everything can be tailored to suit his specific requirement, taste and budget. A flat on the other hand does not permit him to alter the shape and size of the construction area. Nonetheless, it scores higher than a plot in terms of security and accessibility.
The Land vs Flat Debate
Before investing, buyers should thoroughly evaluate the following criteria and then decide whether to purchase an apartment or a plot of land.
Value Appreciation: Land is a limited resource. Its value therefore appreciates much faster than that of a flat of similar dimensions in a similar duration and in a similar location.
Flexibility to Construct and Modify: A plot of land allows flexibility to the buyer to build his house as per his liking. Moreover, the owner can make sweeping structural changes to the building at any given time in the future. An apartment on the other hand offers limited ability to modify and expand.
Quality of Construction: As every aspect of the construction on a plot of land is closely monitored by the home-owner, it is generally of the best quality possible within his budget. In case of apartments, developers often compromise on the quality of construction in order to control costs and meet deadlines.
Source of Income: A plot of land does not generate any income or profit till the time it is sold. On the contrary, flats, when let, generate a handsome, fixed monthly income. Moreover, with modern tenancy laws in place, there is limited scope for litigation.
Security: Individual homes that lie outside a gated community are prone to theft, vandalism and other dangers. They need to invest separately in security systems and guards for the protection of their property. Flats on the other hands lie within residential complexes and are quite secure.
Accessibility: If a plot is situated in a remote location, access to basic amenities might be a problem. Apartments almost always have good walk scores as most amenities lie within easy distance.
Suitability: A plot is best suited for people who can dedicate enough time to building a house on it. Apartments are ideal for people who have less time on their hands and for those who cannot endure the travails constructing a house might inevitably put them through.
The following table captures a comprehensive snapshot of the points discussed above.
Investment in Plot vs Flat: Benefits & Weaknesses