Plot Vs Flat: Which is a Better Investment Option?
The most popular debate in relation to real estate investment in India is Plot Vs Flat. They both have strengths and weaknesses and it is vital that an investor evaluates their financial objectives, lifestyle needs and long term plans before they make a choice.
Plots have the benefit of freedom and a possible appreciation whereas flats have the benefit of convenience and ready-to-live spaces.
The difference between flat and plot will guide you to make a better decision particularly in the upcoming cities such as Rajkot where there is a growing need of both the plots and the flats in rajkot.
What are Flats?
A flat is a home unit situated in a high-rise apartment block. In the city, flats are more prevalent and are shared by facilities (like parking, lifts, gyms, and community facilities). Families in the tier-2 cities are now preferring to stay in flats. This is due to security, convenience, and lifestyle. Rajkot is growing very fastly in terms of infrastructure and modern housing projects; hence, the demand of flats in Rajkot is high.
What are Plots?
Plot is a piece of land that you can build your dream home according to your choice of design and budget. The plots are very customizable and tend to be more appreciated in the long run. They can be used when one desires to be flexible in the construction process and have control over their property.
Plots require more work, whether it is visiting the site, legal inspections, connections (water, electricity), and construction. With flats, much of that load is relieved, as most of these are dealt with by builders and developers.
Plot Vs Flat: A Quick Comparison
To make easy the difference between flat and plot, we go with a side-by-side comparison:
Plot Vs Flat – Effort & Delivery
Delivery Time: A flat (or one under construction or prepared) has quicker delivery - usually move-in ready. There being a plot, until constructions have been completed, you can not reside there.
Plot Vs Flat – Maintenance Costs
Plots have little maintenance unless they are plotted development that shares such facilities. After the building has been constructed, the maintenance is based on the quality, building of the property etc.
Flats have recurrent expenses: society fees, maintenance of communal facilities, cleaning, security, maintenance of lifts, and so forth.
Plot Vs Flat – Return on Investment
Plots usually have long-term capital appreciation particularly where the infrastructure (roads, connectivity, public transport, utilities) will improve in the area.
Flats can be more predictable in the moderate returns, and income of rent from starting. This can offset the expense of investing.
Plot Vs Flat – Legal & Regulatory Aspects
In plots, you should ensure that you do land title, approvals, zoning regulations, restrictions, and also, make sure that roads and utilities are already available or upcoming.
In the case of flats, search for credibility of the builder, RERA registration, occupancy certificate, clear titles of the land parcel on which the apartment is placed and conforming building codes.
Plot Vs Flat – Tax Implications
Indian tax laws have provisions that permit deductions of interest payable on a loan taken in the form of flats. There is also stamp duty and registration fees.
Unless you construct a residential building, plot usually does not give you any deductions on home loan interest. Capital gains tax is charged on the two, based on the holding period.
Plot Vs Flat – Lifestyle & Convenience
Furnished flats in Rajkot or any other city come with a lifestyle option: gyms, gardens, children playgrounds, enhanced security, social networking, shopping, schools, hospitals.
Plots provide privacy and freedom. You create according to your requirements. However, you will have to organize facilities, security, and other benefits yourself or just go with what the developer offers you (assuming that they are a part of planned plotted development).
Plot Vs Flat – Security and Amenities
One of the most appealing aspects of the flat ownership is security. Majority of the apartment complexes are gated and have 24/7 surveillance, security guards, and access control. This has made the flats popular among the family members, especially in urban areas where the safety of the person is a concern.
Besides security, flats would also have a common facility like gyms, swimming pools, parks and even clubs, which makes them extremely convenient to live in.
Quite the contrary, plots are not accompanied by these in-built facilities or security. When you are buying a land in rural or semi urban place, you will be required to go the additional mile of installing security measures in the form of fencing and cameras to secure your investment.
Key Factors to Consider Before Choosing
These are some of the factors to be considered when choosing between Plot Vs Flat:
Budget: Flats can be paid upfront or through EMIs whereas plots can be invested in future constructions.
Purpose: What is your purpose; are you purchasing to live in the short term, as rental, or to invest in long-term capital markets?
Location: It is a significant factor in both flat and plot investments, as it is the proximity to schools, hospitals, transport and work places.
Legal & regulatory checks: Make sure that they are clear in titles, approvals, and legal before buying either.
Lifestyle Needs: In case you like contemporary comfort and community lifestyle, flats can be of more use. Plots are a good option in case you would like to have privacy and customization.
Difference Between Flat and Plot in Rajkot
The distinction between flat and plot is becoming more pronounced in such a city as Rajkot, as it is developing at a very high rate:
The demand of flats in Rajkot is rising because of the increased urbanization and the favor of pre-built houses that have modernistic features. They serve busy people and families in need of convenience.
The attractive plots in Rajkot are desirable to an investor with a long term appreciation and desire to construct personalized houses. Plotted developments are also picking up alongside new infrastructure projects.
Plot Vs Flat: Which is the Right Choice for You?
Since we have now discussed the main differences between the plots and the flats, it is time to consider which one type of investment fits your personal and financial objectives better.
Choose a Plot If:
You like to be customized and flexible in building.
It is a long-term appreciation and capital growth.
You are willing to take up the construction and maintenance duties.
Choose a Flat If:
You want to be convenient and take immediate occupancy.
You prefer to have a source of rental income but not to bother with constructing a property.
You appreciate the in-built facilities such as security, maintenance and community.
Pro Tip: You are still in doubt, then you can talk to a local real estate broker and get some one-on-one guidance depending on where you are, such as flats in Rajkot or any other place you are interested in.
Final Thoughts
There will always be a debate of Plot Vs Flat since they have their merits. What makes the actual decision is whether you are interested in short-term utility or long-term growth. With a knowledge of a flat and a plot and an analysis of what you want to achieve, you can be making a clever investment choice.
To people focusing on Rajkot in particular, plots and flats in Rajkot will be profitable since the city has the potential to grow. You can take a plot or a flat, it does not really matter as long as you invest wisely after considering the location, the legal and the future outlook.
Read More: Top 10 Real Estate Investment Strategies
