Apartments or Plots: What Works for you?

Apartment or Plot

To own a home is a dream come true for many and why not, it is after all both a financial and an emotional step one takes to invest in their own space. That said, it is not a laid-back task. While buying a home, a buyer takes into consideration many aspects such as finance, location, and the kind of house in itself. Many buyers find themselves in a dilemma of wanting to invest in a plot of land or apartment. Although both are lucrative options, they are not the same. One must go through key points that factor in making the decision.

To Invest in a Plot:

Time Consumption– There is a lot of effort and planning that one has to consider while constructing their own house – such as hiring an architect, contractor, approval of the layout from local bodies, arranging and delegating finances, and supervising the construction.

Customization – Owning a plot gives you ample freedom to design your dream house according to your requirements from the very start. You also have the free will to alter the layout as you go on.

Amenities and quality – You will need to make proper arrangements for basic amenities such as power back-up, water, and security. You have control over the quality of products used and can put in only what you personally approve.

Moving -in – The delivery of the plot is almost always immediate, giving you enough time to plan your dream home. You have complete control over the process and can decide on the moving-in date and work towards the same with your contractor.

Value appreciation – As plots and individual homes are not available frequently, the appreciation is higher. Here, the age of the property doesn’t matter and chances are that over time, the plot will increase in value.

Taxation – The tax deduction on interest is allowed only from the time the construction is completed.

Rental Income – Since it is end-user dependent unless the house is completely constructed this option is not viable for rental options.

Read also: “Return on Investment for Homeowners

To Invest in an Apartment:

Time Consumption – An apartment is mostly a builder’s responsibility and you do not have to take much effort in keeping track of the development, except for the initial investment and interiors.

Customization – An apartment always comes with a pre-design in place and gives a very limited opportunity for the buyer to add his or her touch to the house.

Amenities and quality – An apartment comes with all amenities such as power back-up, water, and security. You will be highly dependent on the builder’s discretion and may have limited options to carry out your desired changes.

Moving-in – While most builders share approximate timelines for delivery of the apartment, sometimes it can take longer. 

Value of appreciation – In apartments, the appreciation of a property highly depends on the size, surrounding infrastructure, locality, and amenities available. But this can be slightly unstable owing to the emergence of new projects on a regular basis and more economical rental options. 

Taxation – When you take a loan to buy an apartment, the monthly home loan helps in saving taxes. One can also avail of a deduction of up to Rs 1.5 lakhs for the interest on the loan. 

Rental income – Most of those seeking rental options prefer apartments to plots making it more attractive to those seeking short stays. This is a good investment opportunity for those who look at owning a property strictly for a return on investment. 

Apartments and plots both have their own set of positives and negatives, but either way, they give good returns. It is important to analyse your overall financial standing and your primary housing requirement to select an option appropriate for you. For real estate investment opportunities including apartments and plot requirements, take a look at Radiance Realty. A leading real estate company, with an expertise of over 70 years, has found solid footing in Chennai, Coimbatore, and Bengaluru cities. The brand has a history of working within timelines, offering a wide inventory of choices, with advanced amenities and lifestyle facilities in prominent neighbourhoods of South India. Check out to find out more.