Plots Vs Flats – Which Is The Best Investment Option?
Plot Vs Flat Investment
Both flats and plots have their own advantages, but surely, one surpasses the other in terms of returns and ease of maintenance and flexibility. In this section, we will compare plot vs flat investment and try to conclude which one is better and worth investing in than the other. We will take a few parameters as axis for the comparison and draw our conclusion from them.
These parameters are crucial for any real estate investment. They include –
- Initial investment
- Standard of living
Let’s take a look at how flats and plots perform with regard to the parameters or factors mentioned above. This will help us figure out the answer to the pressing question – flat or plot which is better?
In terms of appreciation, land appreciates better than apartments. Apartments are available in abundance and are able to meet their demand. However, land, on the other hand, appreciates more than flats. This is because there is more demand for land than its supply, making land a more valuable asset compared to an apartment. Apartments are developed properties that need more maintenance as they age. This decreases their value over time, as opposed to plots. Therefore, looking at it from a plot vs flat investment perspective, plots are a much better investment than apartments.
2. Flexibility to customise
Customisation is another point that factors in the debate of ‘plot or flat which is better?’. Since apartments are already developed properties, you don’t have a lot to do in terms of structure. The scope of customisation is limited only to interiors and decors. On the other hand, plots are plain parcels of land – you have complete freedom to do what you want in terms of the development of property and customisation of the same. The land is extremely flexible in the sense that you can choose to develop it into a commercial, residential, or even an industrial property based on the location you own it. Therefore, the land is a better investment if you are looking for more flexibility in terms of customisation.
3. Delivery or Handover
Apartments can usually take a longer time for handover, especially if you book one in the pre-launch phase. You have to wait for the completion of the apartment’s construction and be patient with the registration and handover process before even starting with the customisation of your apartment. Land, on the other hand, does not involve any sort of development. So, you save a lot of time there. It does not take a lot of time for the land to be delivered. Not all apartments are ready to occupy, but plots are almost always ready for possession. Therefore, when it boils down to plot or flat which is better investment in terms of delivery and handover, land scores more!
4. Initial investment
Apartments, being developed property, definitely cost more. Add to it the location, the amenities that come with the flat, maintenance charges and more; your investment in an apartment is sure to shoot up. Land, on the other hand, has none of these added expenses. Since a plot is an undeveloped piece of land, the initial cost of investment is reduced drastically compared to the initial investment put into flats. Therefore, if you are asked to choose between plot vs flat investment, you can confidently choose flats.
5. Standard of living
Owning a plot is a straight-shot symbol of luxury. An asset that gives complete freedom in terms of customisation as well as the development of the property. Owning an apartment can also be a good symbol of sophistication, provided the apartment is spacious, located in a posh area, with amenities galore. All of these need to sit well for the apartment to be a luxury symbol. Whereas, in comparison, a land, no matter the location, is a status symbol by itself. Therefore, the land offers an elevated standard of living.
Contemplating between a villa, plot, and a flat? Get some insights here!
Plot Or Flat Which Is Better Investment?
When you put apartments and plots to the test with regard to these factors, land hits a clear win. Therefore, the debate of ‘plot vs flat which is better investment’ is safely settled. If you are looking for an investment with better appreciation and returns, go for land. If you want to invest in real estate for personal use, go ahead and invest in apartments.
|Appreciation||Appreciates better||Value decreases with age|
|Customisation||Vast scope||Limited scope|
|Delivery/handover||Speedier handover||Can take several months|
|Initial investment||Low initial investment||High initial investment|
|Standard of living||Symbol of luxury||Not always a symbol of luxury|
Now that it is clear that land is the winner of the evergreen debate ‘flat or plot which is better’, it is time to go with a trusted land developer like G Square Housing Pvt. Ltd. if you are looking to invest in plots in South India. We are South India’s largest and Tamil Nadu’s No. 1 real estate developer, with the ability to find you the best plot deals in prime locations across cities at the right prices and times. For more details, get in touch with us here.