When it comes to investing in real estate properties, one of the first decisions that a person has to make is whether they should invest in a plot or an apartment. While buying an apartment might seem like an easy choice in the beginning, it has its obvious set of cons. Buying an apartment comes with risks that outnumber the risks undertaken while investing in plots. Hence for potential property investors, here are seven eye opening reasons why investing in plots is always a better option than investment in apartments.
Plots are always in demand owning to their zero depreciation. Therefore, the value of a plot appreciates constantly as opposed to that of constructed apartments. Given that infrastructure and planning of your chosen investment property is in place, the plot price is likely to shoot up faster and higher than that of a housing property/ apartment.
Since the value of plots will always go higher than the current price, purchasing residential plots is an excellent option for financial investment and hence provides financial security. Not only financially, even in the face of natural calamities, one can be assured of the safety of their plot. There is not collateral damage in the aftermath of a calamity.
Buying a plot gives you a lot of flexibility even if you are not buying it for the sole purpose of investment. If you are looking to build your dream home, purchasing a plot gives you the advantage of designing and constructing it based on requirement as well as affordability, something that is impossible while investing in apartments.
Plot investment is a far more achievable milestone than buying an apartment, as it is a relatively more affordable investment. Furthermore, property tax that one has to pay for buying an investment property is lower when compared to buying an apartment. Also, maintenance expenses are absent when it comes to investing in a plot, something that is very much present while buying apartments.
Apartments might yield good short-term results, but plots definitely fetch great long-term returns when invested in. The value of an empty plot multiplies over the years, in contrast to constructed apartments that depreciate with each passing year.
Investing in land is considered to be one of the biggest investments which requires pooling of funds from different sources. But, recently, with so much competition; the revised rates, along with subsidized rates allow a customer to go for a plot purchase in the same package of deal as a home loan along with low or same interest rate. This makes plot purchase much easier and appealing.
Easy Exit from any flat/apartment deal to get into new one cannot always be accomplished unless what the buyer needs to buy is exactly what the seller needs to sell. The demand can not always superimpose the supply. On the contrary, with plots, the seller has a freehand and the buyer doesn’t come with any prior conditions to get into a negotiation or deal.
The sale can happen quickly and smoothly in this case, giving the seller an exit easy.