Which is a better investment option: Plots or Flats?

Which is a better investment option: Plots or Flats?

Which is a better investment option: Plots or Flats?

More and more people are looking to invest in real estate in India but people are perplexed whether to invest in a plot or in an high rise apartment. Both choices have their own advantages as well as disadvantages.

Investing in a plot

One should buy a plot only if he is ready for a long term investment. Investing in a plot, at the initial stages, can fetch huge benefits and profits. An buyer can expect to get the best ROI after five to seven years of the investment. But, investing in a plot also comes with a certain hassles. The owner has to start work from the scratch. Right from constructing the plot to hiring of architects, contractors and laborers, etc. everything has to be done by the owner. But this also gives the owner the flexibility to construct his home according to his requirements.

Before investing in a plot one must do a through research about the plot locality. It is mostly seen that the price of a property is usually dependent on a locality, and so central localities demand a premium while property sites which lie on the outskirts cost much less. Although the plots located a little far from the city may take a longer time to give a return on investment but as the city grows these plots get a much higher profits.

Investing in an apartment

Owning an apartment is a lifestyle choice for many people. One should buy an apartment, after doing a through locality research. People should buy an apartment only after gauging the growth potential of the locality. Flats generally give a better ROI if they have a location advantage. But, the rate of return on flats is also dependent on many other factors like connectivity, possible rental income, security arrangements, size of unit etc.

Many people also consider buying a flat as it is an hassle free investment option; buying a flat ensures that common facilities such as electricity, water supply, power back-up, etc are taken care of. People don't mind paying a little extra as maintenance cost if it saves them time and trouble. Flats are also easier to sell.

Last Updated: Thu Sep 18 2014

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