Confused Between Plot or Flats, which one is a better investment!
If you are looking to invest in residential Real estates market you often com across wither to invest in a plot or in a flat most of people got confused while comparing a property before investing.
In Flats, You Can not get any complete flexibility to modify your Apartment because in flats apartment sizes are designed by builders and approved by a government official before getting occupation certificate for the building. this scenario is for both Under Construction and ready to move in Projects and property.in ready to move property you don't have much scope for structural changes you have to accept property like the way it is.where as in Plots you can design property with your own taste like the way you love more over in Huda plots there is a criteri for construction in huda sectors
in Flats, you get a better return as compare to Fixed deposits and other investing scheme options.
When we took a tenure of 20 to 25 year we get an approx average return of 8 to 12 %. there might be some chances that you get return of upto 30% in first year and 0% in next successive year. above is roughly idea of 20 to 25 year.Return Can be higher depending upon area,growth and infrastructure.
in plots, you will get a return of 10 to 15% depending upon market condition, in developing area and upcoming economic corridor these return can be high. but it can be negative in the undeveloped area because there might be a chance that area can take a timespan of another 10 to 15 years.
in plots there is some Major risks that can affect you badly.
in case of a home loan in flats you get an easy loan and get tax benefits instantly under section 80c and section 24, You will get a loan up to 90% depending upon your terms with bank and eligibility of cbil score. And remember home loan are always cheaper and you can also get benefits of 2.75000 under PMAY Awas yojna.
in Plots You have to Dump all the money at once andif your get any loan from other property then the value will be higher.
In flats there are gated community and usually society have tear 1 and tear 2 security on the other hand side plots have no security and there are always chances of encroachment in plot
if you are working class people then flats are a very good option but if you are seeking higher returns then plots are good options.
Some useful Link for property decision.