Do Not Buy A Flat 2025

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Recently, there has been a huge discussion on the ownership of the property because it is a lifetime purchase decision that requires a long-term financial commitment. In this article, I will discuss why you should not buy a flat.

Value of the property

Both plot and flat can guarantee appreciation with the passage of time on the basis of several factors like connectivity to the metro line, transit hub, availability of the nearest markets for grocery shopping, and other household purchases. However, the best investment option depends on the requirements of the investor. If as an investor you are planning to resell the property after a short period then buying a flat is a better option. On the contrary, if you are planning to resell the property after a long period then buying a plot is a better option.

Modify as per the preference

Buying a plot will allow you to freely modify or mold it as you prefer. You can make as many changes as many times as you feel comfortable or affordable on the plot because that particular area is registered on your name and you have the authority to make the changes as per your need. However, you will not get this option in the flat because it is a preconstructed entity that is set to be used by numerous people in a specific manner. You are allowed to make a few changes inside the flat without affecting the area of use by another person or family. In short, you are restricted from altering the shape and size of the construction site.

Value appreciation

The appreciation of the value is much higher in the case of the plot. On the other hand, if you invest in a flat, the value will depreciate in a few years due to changes in the quality of the type of interiors used. This depreciation will result in not getting huge returns on your investment. If you purchase a plot, the value of the land or property will increase irrespective of the quality of material used inside the area for construction. The main aspect that matters here is the ownership of the areas which is possible in the case of a plot and not in the case of a flat. The value of a flat appreciates but at a diminishing rate.
One of the famous quotes by Mark Twain is

“Buy land, they’re not making it anymore.”

This is clear that a plot or land has more value because it cannot be produced or generated more. In the case of flats, more flats can be created on a small piece of land by creating multi-story apartments. Plot offers a better risk-reward ratio. As long as you hold a plot, the more you will be able to generate a return on the investment because the per-square-yard value will keep on increasing.

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No dependency

In the case of ownership of a plot, there is no major dependency on the developer for any type of construction except for the basic infrastructure of electricity, roads, and water. There is also a penalty for delay in the construction and use of the plot.

Repair and maintenance expense

Repair and maintenance expense is paid monthly by the flat owner for any type of repair and maintenance inside the total area where the flats are constructed. However, this is not the case with plot ownership, except for the repair and maintenance which happens occasionally. In short, there is no fixed monthly liability for the plot owner.

Additional income

There can be an additional source of income for the plot owner if he constructs two or three floors for renting. But this is not the case with flat ownership, except for buying an additional flat on the same or other floor. It means you need to buy at least two flats if you want to have rental income because one of the flats can be used for your residence and the other one for rental yield.

In my opinion, it is better to invest in the piece of land for the long term in comparison to the flat. However, it all depends on the personal requirements of the availability of amenities, security, and advantage of the location which might not come with a flat. All-in-all, do not buy a flat rather buy a plot.

Frequently asked questions

Which is better for investment: plot or flat?

Plot is better for investment for the long term.