It is always a challenge to determine whether you should invest in plots or flats when it comes to real estate. Both have their own pros and cons, but the final decision of which one is best for you – mainly depends on your goals and objectives.
Below are some pointers to help you understand the benefits and drawbacks of investing in plots as well as flats before making a final choice.
Benefits Of Investing In Plots :
– The advantage of buying LDA plots in lucknow over flats is that you’re not restricted by the developer’s designs. You can customize your house according to your own taste and preferences, which makes the property more valuable and desirable. This also gives you an opportunity to get multiple options for future sell-off or leasing since there are many people who would want to buy or rent a customized property. The prices of land also tend to increase with time, giving you higher returns on your investment down the line.
– It is easy to buy or rent a plot compared to buying or renting an already built house. Buying or renting an already built house is quite expensive and complicated because it involves title deeds and other legal procedures. On the other hand, plots for sale in lucknow are cheap and you don’t need any legal document when buying them. You can even lease a plot without being asked to provide proof of income unlike when leasing an apartment.
Drawbacks Of Investing In Plots:
-Loss of control over your assets: When you invest in a plot, you are counting on being able to make money off of it in the future. But if you sell that plot, or someone else is already building on top of it, you will have lost control and could potentially lose out on a profit.
-Risk of damage to the environment: Some plots are located in areas where the soil may be very fragile or susceptible to erosion. These plots might not be worth investing in because they could cause environmental damage in the future.
-Risk of political instability or conflict: Some plots are located near areas with political instability or conflict. These plots might not be worth investing in because they could cause problems down the road.
Benefits Of Investing In flats:
Financial Security – The overall financial stability of any individual depends on the amount of investment they have made. Real estate provides greater financial security as the property will appreciate over time and it can be sold at a higher price if required by the owner.
Tax Benefits – Investors can enjoy tax deductions for different expenses such as home loan interest payment and insurance premium payment that lets them reduce their taxable income. These tax benefits allow investors to save more money every year, which can be utilized for other investments or savings.
Drawbacks of investing in flats
The main drawback of investing in flats is that they do not appreciate as quickly as other types of properties such as houses or apartments. This means that it may take several years before your investment begins paying off.
The second drawback is that if you have bought a flat which has been recently built, then there is always a chance that builders and developers may decide to convert it into another type of property such as an apartment block or housing development. This means that your money will go towards building something else instead of staying invested with your original property.