The residential plot and the residential flat are two types of investment options that you can consider. While both have their own benefits, it is important to understand which one is a better option for you.
Buying a plot and building your own home can be a cheaper option than buying a residential flat. This is because in some parts of India, the price of land is lower than that of flats. This means that if you buy a plot and build your own home on it, you will end up with more space for less money.
As well as this, when buying a plot and building your own home, there are no restrictions on what you can do with it. You can build whatever type of house you want and make sure it suits your budget and requirements. You also have more freedom in terms of design and size when compared to buying an existing residential flat which may not necessarily suit your needs.
When you buy a flat, it’s not like buying a residential plot where you will have to do all the maintenance yourself. The builder or developer will take care of all the maintenance work for you. And in case there is any problem with your flat, you can always call them up and get it fixed immediately.
Buying a flat requires less leg work and worry because the builder takes care of all permissions and approvals from authorities. The builder will also make sure that there are no encroachments on your property so that you don’t have to worry about it later on.
Residential Plots Vs Residential Flat: Difference
The difference between a residential plot and a flat is that the former is a piece of land where you can build your own house, while the latter is a pre-constructed home that can be bought from developers and builders.
A residential plot is a piece of land on which you can build a house. It may be sold by the government or by private owners. The buyer buys the land and pays for building permissions, planning permission, etc. This type of property generally has more land than the other types of properties.
These flats are located within the city limits itself and hence offer more convenience to its residents compared to other types of homes available in India today. These flats are usually constructed on low-lying land along with proper infrastructure such as roads, drainage system, electricity connections etc. In addition to this, there is adequate open space around these flats which makes them look beautiful from outside as well as inside too!
Residential Land vs Residential Flat: Comparison
|Different Metrics||Residential Plot||Residential Flat|
|Flexibility||Residential plots offer maximum flexibility to the buyers as they can build their own houses according to their budget and preferences. They can also add their own touch to the house according to their needs and requirements.||On the other hand, residential flats are more expensive than residential plots because they offer less flexibility when it comes to customization options while constructing your dream home.|
|Rate of Appreciation||Plots and land are more valuable than flats because there is a limited supply.||As time goes on, the value of an apartment or flat decreases and the condition deteriorates.Due to this reason, people who want to invest their money in real estate prefer purchasing plots instead of flats or apartments.|
|Financial Aid or Assistance||Availability of a loan for a plot is challenging. You will have to go through several rounds of documentation and documentation to get funding from banks or financial institutions||The financial assistance for purchasing a flat is easily available. In fact, the government has come up with schemes to help people avail housing loans at low interest rates and with easy repayment.|
|Potential of Income||You can expect a rental income from a plot only after building a structure on it. You will have to wait until the construction work is complete and then start collecting rent from your tenant after giving him possession of the property.||If you want to make money immediately, then you should go for buying a flat instead of plot because then you can get rental income right away without having to wait for years until your construction work is complete.|
|Tax||You can avail of tax benefits only after constructing a property on the plot. This is because you do not have to pay for anything in advance but when construction starts, then it becomes taxable income.||You can avail of tax benefits through a flat on your housing loan interest, principal repayments, etc. This is because you have to pay for everything in advance and there is no such thing as an income tax benefit available through a flat.|
Residential Plot vs Residential Flat – Benefits & Drawbacks
There are two main types of properties in India: residential plots and residential flats. While both the properties have their own set of benefits and drawbacks, it is important that you choose the one that suits your needs best. To help you decide what suits your needs or budget, we have compared residential plots vs residential flats.
Plot vs Flat – Effort
The difference between a plot and a flat is the effort you have to put in to get it. A plot requires more effort than a flat.
Plot is a piece of land which has its own boundaries, with or without any building structure on it. The plot owner has full control over his plot and can do whatever he wants with it. He can either sell it or use it for his own purpose.
Flat is an apartment in a multi-storied building, that is owned by the person who resides there. The size of the flat can be small or large depending on your requirements and budget but the main point is that the owner does not have full ownership rights over the property, as he shares it with other owners too.
Plot vs Flat – Delivery
While it may take some months or even years to get possession of an apartment, plots are usually ready for possession. If your choice of the plot is part of a township, you are likely to get possession of the plot earlier than a flat.
Plot vs Flat – Returns
Residential plots are a good investment option for people looking to invest in property. The returns on residential plots are higher than residential flats, as plots have lower land costs and higher floor area ratios.
Flats usually have a lower return due to high construction costs and the fact that they are smaller. However, if you are looking for a short-term investment option and want to live in the same building, then investing in a flat might be more suitable for you.
Plot vs Flat – Income
There is no income from plots till the time you construct upon it. But if you are a homeowner and have a residential flat, then you can easily make some extra money by renting out your property. There are many people who have an extra bedroom or an empty house, which they can rent out. It is very easy to find tenants for your property and it will also be beneficial for both parties.
Plot vs Flat – Tax
Tax treatment for plots and flat is different. When you take a home loan to buy an apartment or a builder’s floor, the monthly loan repayment allows you to save on tax.
In case of flats constructed by developers, the interest paid on the loan is treated as rent and not as income from other sources. You can claim deductions for various expenses against this rent income.
Summing Up: Residential Flat vs Residential Plot
All in all, it will be a matter of preference and convenience. With regards to the location, as long as it falls under the metro area, with easy accessibility to airports, ports and highways, there will likely not be too much difference in your decision making. If you have been considering to buy a good quality residential plot or apartment lately, we suggest discussing these with your agent who will work with every option available and help you make an informed decision.
Frequently Asked Questions On Residential Land Vs Residential Flat
Plot vs Flat what is the better investment option of the two?
In the present scenario, the demand for flats and plots are on a high. The trend of buying houses and flats is increasing day by day. It is because people want to live in a secured place with all facilities that are provided by the government.
The demand for plots in Lucknow and other parts of India has increased due to the fact that people want to have their own house instead of paying rent every month. In addition to this, homes are being built in different sizes and shapes which make it easier for people to buy one that suits their needs.
Is a plot better than a flat in terms of appreciation ?
Yes, it is.
A plot is better than a flat in terms of appreciation.
The reason behind this is simple: a plot gives you more space to grow and develop your own property. It also gives you more privacy and security.
If you want an investment that will give you good returns, then a plot can be the right option for you.
But if you want to live in your new home right away, then buying a flat would be better than buying a plot and constructing your own house on it later.
What offers better design flexibility, a plot or flat ?
Plot is the most popular choice in India. A plot offers complete design flexibility and freedom. You can build your dream home as per your requirements and taste. If you plan to buy a plot, you should know that it is a long-term investment.
Flats give you limited option in terms of designs and styles. But they are comparatively cheaper than plots and have easy access to amenities like water supply, electricity, roads etc.
Is it easier to get a loan for a flat?
Yes, it is easier to get a flat loan. The reason for this is that flats are generally more expensive than houses and so lenders have more protection against defaults. They also have more security in case of default as the flat comes with a ‘deed’ which can be used as collateral.
However, a lender will look at your income and other factors before deciding whether or not to give you a loan.