If you find it difficult to decide whether to buy an apartment or a plot, you are on the right page. Although each option has its own set of pros and cons, buying a parcel is a better decision from an investment standpoint. In this article we are going to take a look at the advantages that you can enjoy buying plots. Keep reading to know more.
1. Low acquisition costs
One of the main benefits of investing in a plot is that it does not require a large investment. And even if the building is worthless, the landowner will have to pay to demolish it. Therefore, a building costs more than land. If this is your first time buying, you should opt for a plot instead of an apartment.
2. Construction flexibility
If you are looking to buy an apartment, know that it will be a tradeoff between location, budget, structure or design. It is important to note that the apartment can cost more, especially if it is located in a popular place where the demand for these plots is quite high.
Based on your budget, you can go for the right layout to build a building on it. If you can’t build a luxury house right now, you can have one built later as long as there is enough area for construction.
3. Privacy
Here it is important to note that plot owners share the available space with other people. Therefore, they enjoy privacy while sharing the space with others.
4. Reduced maintenance cost
If you are on a budget constraint, know that you may not be able to build a house on your parcel. However, this comes with the benefit that you won’t have to bear the huge maintenance costs associated with apartments.
5. Greater appreciation potential
When it comes to real estate appreciation, know that the increase in value is associated with parcels, not apartments. When you invest in an apartment, the value of the apartment increases based on the undivided part of the land (UDS). So, if the one you have bought enjoys more UDS, know that it will appreciate more.
6. Immediate possession
Today, one of the most common risks is associated with ownership of the apartment or plot that you have paid for. If possession is delayed for any reason, there are many effects such as lost rental income, lost tax benefits and pre-EMI interest to name a few. On the other hand, if you own a plot of land, you won’t have to worry about these risks.
7. Risk free
If the apartment you have bought is built with deviation, it can be demolished. Even if it is not demolished, you may face problems selling it again or applying for a loan.
On the other hand, for parcel projects, it is not necessary to obtain construction approvals. All you need to do is get design and title approval from the proper authorities.
So these are some of the advantages of buying land over apartments.
