Advantages of Buying Plots

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All of us struggle to decide on whether to buy a plot or apartment while making real estate

investment. Though there are pros and cons of choosing either alternative, from investment point of

view it out scores apartment. Let us look below advantages and risks of buying plot.

Advantages of buying plots:

•Low acquisition cost

One of the important benefits of buying plot is that it is cheaper than buying an apartment. Even if a

building is worthless, the owner of the land will have to pay to demolish it, so building becomes

costlier than land at any point of time. It will be affordable for first time home buyers to buy a plot

rather than apartment.

•Flexibility in building your dream home

If you want to buy an apartment it is always a tradeoff between, design / structure and budget or

location. A well designed apartment will be costlier as builder charges for non-constructed area also

for the rate of constructed area. This makes well designed apartment too costlier for people to

afford and hence they sacrifice design and structure over budget.

However in plots you can choose designs based on your budget. Even if you cannot afford to build

a luxury home now, you always have the opportunity to build one in future, if there is enough land

area.

Privacy

Unlike apartments, plot owners need not share floor space with them. They get complete privacy while living in a community.

Minimal maintenance cost

When budget is a constraint, people can opt not to construct in plots. So it reduces not only investment but also huge maintenance cost which apartment carries. Painting, maintenance, security adds lot of additional pressure on home owners.

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Immediate possession

One of the critical risks most apartment buyers face today is whether they will get possession as per the date promised by builder. When the possession is delayed, it has multiple effects like pre EMI interest, losing income tax benefit, losing rental income etc. But plot owners don’t have any of these risks.

Risk of wrong approvals

If any apartment is constructed with deviation, the home buyer faces risk of demolition, reselling problem, unavailability of loan etc till he sells home. Even the builder may have approvals, but during construction if there is any deviation apartment owner needs to face the risk.

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Higher appreciation potential

“Under All Is The Land”. Real estate appreciation is always on land. When you buy apartment, appreciation on the value of apartment is based on the Undivided Share of Land (UDS). If your apartment has more UDS, it will appreciate more and vice versa. However in plot the whole investment in going in to land. So appreciation potential is far superior.

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Risks of buying plots:

•Encroachment

Normally plots are available far away from city, as land is scarce inside the city. When you buy land outside city, it becomes difficult to manage on daily basis. This poses a huge risk of encroachment. Unless the project is properly fenced and has 24/7 security there is a high risk on unauthorized occupation by other people.

•Difficulty in obtaining approvals, managing construction

There are so many permissions / approvals to be obtained from government authorities before, during and after construction of home. For an individual it is difficult to obtain necessary approvals, amidst personal and professional commitments.

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No rental income, Income Tax benefit

Plots don’t generate rental income. Also No Income Tax benefit for buying plot, it is available only on completion of home.

Bangalore has lot of plot projects. Hosur road, bannerghatta road, sarjapura road, tumkur road are few of the upcoming areas in Bangalore which a home buyer can consider buying plots.

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About Realtycompass.com

Realty Compass is a leading real estate portal in South India, with significant presence in Bengaluru, Chennai, Coimbatore, and Hyderabad.

Realtycompass is not only offering user to buy new projects but has access to the following services as well-

Columbuzz.in - Ask Realtycompass.com is a real estate web portal guide for users can ask questions and receive answers from subject matter experts and other members of the community and also Realty compass Project Rating indicator will help the consumer decide his next home based on rating factor.

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Dial Home - Realtycompass.com enables home buyers to directly call builders through an Unique PRI number.

Genuine Property Bargains - Realtycompass helps home buyers identify genuine property deals based on regression analysis of project rating and price per Sqft in a locality.

Find some projects from Top Builders:-

Keerthi Royal Palms Apartments in Electronic City

BBCL Navarathina Apartments in Ambattur

Prestige Jade Pavillion Apartments in Marathahalli

Nu Tech Greens Apartments in Porur