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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 plot 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 by 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 a piece of land. If this is your first time buying, you should opt for a plot instead of an apartment.
2. Construction flexibility
If you’re 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 may 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 choose the suitable 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 have a budget constraint, know that you may not be able to build a house on your plot. 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 portion of the land (UDS). So, if the one you bought enjoys more units, you know that it will appreciate more.
6. Immediate possession
Today, one of the most common risks is associated with the ownership of the flat or plot that you have paid for. If possession is delayed for any reason, there are many effects, such as loss of rental income, loss of tax benefits, and pre-EMI interest, to name a few. On the other hand, if you own a plot of land, you will not have to worry about these risks.
7. Risk-free
If the apartment you have purchased is built with deviation, it can be demolished. Even if it isn’t torn down, you may face problems selling it again or taking out a loan.
On the other hand, for parcel projects, there is no need to obtain building 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 instead of apartments.
