Buying a plot vs. buying a Flat, Secondary to happiness, love, life and time the most valued thing in this world is money; bitter but true, every single penny you spend and earn reflects on your life, it may affect your present and future.
And that is the reason, you should research well before spending money on anything, because you surely do not want to end up regretting after purchasing something on which you have spent your life savings and hard-earned money, Today Tricity Property Guru is here to help you draw a comparison between a plot and flat.
Buying a plot vs buying a Flat In Chandigarh 
Buying a plot and flat could be really confusing; we all have these questions, which is a better investment? What is safer? Where can we earn more profit? Where the risks are less? What to buy for residential purposes? Well do not worry, your search ends here because Tricity Property Guru is here to answer all your questions.
Which is better to buy plot or flat?
Usually a plot or flat is brought for two purposes, residential purpose and to build assert or invest on it. Now how do we decide what is better? Well this totally depends on your purpose.
We will draw a comparison for you between flat and Plot. The flat can again be divided into two subcategories, under construction flat and ready to move in flats, let us decode them and have a deeper look into each one of them comparing few necessary factors.
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Buying a plot as an investment
Buying a plot as an investment sounds fascinating, however we often get confused, when we also have flat as an option to invest. So what are the benefits of plot? And what are the risks involved? Well lets analyze and discuss each factor that should be considered before buying a plot.
Flexibility
Flexibility is one of the plus point of a plot, because when you buy a plot the land is yours, you can built one story or a multistory house, you can even use it for commercial purpose, you can buy a plot and increase its worth within no time, by adding more and more features to it, so basically plot is flexible enough to be enhanced.
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Returns
Return rates are quite high as compared to flat both under construction and ready to move-in flats. Though this would highly depend upon the location of the plot, if it’s an area where urbanization or development is increasing at a faster pace and the building you have built is idle to the purpose served by the area then returns are to be high for sure. It is said in 20-25 years the return can come up to 20%
Risks
Chances for risk are much higher; cases of acquisition and encroachment are heard every now and then if left unattended. Possibilities of acquisition of land by government, is also possible leaving you with a not so satisfying amount as a compensation, your rights over your land could questioned leading you to unnecessary court visits. Title and Approval risks are there too
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Rental Income
There is no rental income of a plot itself, until and unless something is built there. Here we are talking about plot itself, so we will not take post construction rental income if any into consideration.
Tax Benefits
There are no tax benefits at all for the plot itself, however some tax benefits could be availed only after a home is built there.
Bank loan
Buying a land can be an expensive affair, as you do not get loans easily for plots because of its nature of being at a high risk. So you can think of buying a plot only if you have a good amount of down payment collected already, also the percentage of loan you receive is quite less,
when it come to plots maximum of 60% of the total amount can only be received as loan, that means you need to have your pockets filled if you need to invest on land. Also the rate of interest is high, because plot investment is a bit insecure.
Buying a flat as an investment
Flexibility
If we talk about ready to move in flats, there is no scope for construction, or redesigning, as everything is already constructed with a set point of view, also you cannot build floors or more rooms as there is no scope for expansion. Even in under-construction flats, not much can be done.
Returns
Returns are less as compared to plot. If the flat is situated in a posh and developed area, the returns are around 10-12% if seen in last 20-25 years. However under construction flats produce a higher return of 13-15%
Risks
Risks are quite low in ready to move-in flats, but if we talk about flats that are under-construction, there can be a risk of delay in possession, we have often heard that many people are paying interest for an under construction flat, possession which they haven’t received for a long time, and the purchasers cannot really do much about it.
Rental Income
You can easily generate a rental income for ready to move in flats, by renting it out to families, students or working professionals. But you cannot generate an immediate Rental Income from an under construction flat.
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Tax Benefits
If you opt to buy a flat with home loan you get tax benefits on principal under section 80 C and on interest under section 24, so you enjoy tax benefits on both ready to move in flats as well as under construction flat.
Bank loans
Bank loans are easily available at low interest rates for both ready to move-in and under construction flats. In home loan 90% of the total amount of the property can be approved as loan, that means they are not a burden on your pockets.
As a conclusion we would suggest that if you have stacks of money already and looking for higher returns and are vigilant enough to take care of your land, preventing your land from encroachment and other risks then you can consider buying plot as an investment,
but if you do not have too much money stocked up in your bank accounts, looking for moderate returns and do not wish to take risk, then you should go ahead with the procedure of buying flat.
In addition to these factors there are few more factors that you should consider if you are thinking of buying a flat or plot for residential purpose.
Security
We all want to feel secured at our home, and that is why it is very important, to look at the area before finalizing a flat or a plot. Flats are more secure than plots as flats are build in a society with securities like 24*7 guards, intercoms and huge gates, all in all a secured gated community.
Plots are usually not so secured as the homes built there are built individually, no adjoining neighbors or any kind of security system is present there
Facilities
We all hate distances don’t we? And that is why we want all the basic facilities near our homes, from grocery stores, to schools, restaurants, hospitals and spiritual places. Flats are built in societies where shopping complexes are present, also they have facilities like clubhouse, parks and other amenities.
And if we talk about plots, plots are purchased mostly in backward areas, where even basic facilities like good hospitals, schools, malls and complexes are not so close at hand.
The other factors that should consider before buying a home has already been discussed above like flexibility, bank loans, risk and tax benefits. Considering the above factors, we would say that flat is a better option to live in as compared to the plot where an individual house will be build.
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However if you wish to leave in a place where eventually own the land with the property as well, you should opt for plot.
Now we will talk about considering buying a flat or plot in Chandigarh, we often face questions like is Chandigarh a good city to invest in? Or which is the best place to buy property near Chandigarh? Don’t worry Tricity Property Guru is here to answer all your queries. Let’s discuss the frequently asked questions.
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Which is the best place to buy property near Chandigarh?
The choice of location for a property always depends on the purpose of your purchase, whether its commercial, residential, or any other purpose. If you are considering to buy a property in Chandigarh or nearby areas for residential purposes you should consider Aerocity, Mohali, Zirakpur, Chandigarh sector 35, 23, 17, sector 26.
Reason being the connectivity, development and all the facilities near at hand. But If you are planning to buy it as an investment or commercial purpose or as investment , you can consider, Kharar, sector 82, New Chandigarh, Industrial Area Phase 1 and 2, Mohali phase 8.
Can we buy flat in Chandigarh?
Living in Chandigarh main city is an expensive affair itself, if we compare the livelihood of Mohali and Chandigarh, living in Chandigarh can fall heavy in your pockets, also there are no private societies present in Chandigarh, however you may find Government societies, with bare minimum facilities, where you will not be able to enjoy luxurious clubhouse, or huge children park facilities.
But don’t be disappointed you can buy budget and affordable flats near by Chandigarh, in Mohali, Zirakpur, New Chandigarh and Panchkula.
Is it good to invest in new Chandigarh?
Well the question is straight and so is the answer that is yes. Reason being New Chandigarh is a developing area, and sure shot development will take place here, as per the plan of GMADA the city will be greener and cleaner also already many township projects have been developed,
It has good connectivity with nearby places and is closer to PGIMER, a 350 acre land will be reserved for medical facilities Tata Cancer Hospital is the first hospital built in medicity and many will be built soon in near future. Similar From education to sports facilities everything has been taken into consideration while building this project. So yes you can definitely invest in the rapidly growing New Chandigarh.
I hope we have filled you up with all the information you needed to know, the factors you need to consider before the purchase of flat or plot and which place you should look for after you have made up your mind regarding Investment.
Hope you like this article, in case you have any queries related to real estate feel free to contact us, don’t forget to comment your views or queries below.