7 advantages of buying a plot

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 pros and cons, buying a plot is a better decision from an investment point of view. In this article, we will see 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 make a payment to demolish it. Therefore, a building costs more than a piece of land. If you are buying for the first time, 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 compromise 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 location where the demand for these plots is quite high.

Depending on your budget, you can go for the right design to build a building on it. If you can’t build a luxury home right now, you can have one built down the road as long as there is enough area for construction.

3. Privacy

Here it is important to note that the owners of the plots 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, know that you may not be able to build a house on your lot. However, this comes with the benefit that you won’t have to bear the huge maintenance costs associated with apartments.

5. Greater potential for appreciation

When it comes to real estate appreciation, know that the increase in value is associated with the plots, not the apartments. When you invest in an apartment, the value of the apartment increases based on the undivided share of the land (UDS). So, if the one you bought enjoys more UDS, you should know that it will go up more in value.

6. Immediate possession

Today, one of the most common risks is associated with owning the apartment or land for which you have paid. If possession is delayed for any reason, it results in many effects, such as loss of rental income, loss of tax benefits, and interest before EMI, to name a few. On the other hand, if you own a plot, you won’t have to worry about these risks.

7. Risk free

If the apartment you have bought is built with a diversion, it can be demolished. Even if it is not demolished, you may have problems selling it again or applying for a loan.

On the other hand, for parcel projects, you don’t need to get building approvals. All you need to do is get the design approval and title from the concerned authorities.

So these are some of the advantages of buying plots instead of apartments.