The second home buyer or investor normally falls into the dilemma when it comes to investing in land or an apartment. Both the investments have some merits and demerits. Buying an independent land/floor means sovereign choice to build a house depending on one’s own requirement and constraints. On the other hand, a flat apartment is a redesigned, multi-floored construction. The apartment buyer has lack of freedom to change the shape and size of the construction area. However, it benefits in matters related to security, accessibility and location advantages.

Comfort Zone

While buying an apartment, one does not have to worry about hiring an architect, seeking approvals from local bodies and dealing with contractors. The developer takes care of these things, build a house and hands it over to you. If the flat is in a society, mostly the following amenities are provided - power backup, maintenance and security, club house and swimming pool. If you buy a plot and build a house on it, you will miss these comforts, unless it's in a gated community developed by a builder.

Property Appreciation

The appreciation of a property is directly correlated to the location. A safe location with a good neighborhood is the key to price appreciation. Depending up on the stability of the market, the flat value increases over time. Thus, there is risk involved with plots as its value is highly dependent on market risks. On the other hand, flats are better because the apartments increase in price based on the development of infrastructure, locality and neighborhood.

Investment Cost

The investment cost of buying, developing and maintaining a property should also be considered while choosing your investment option. Building a house in a vacant plot requires constant monitor, providing raw materials, checking the construction related permits etc., which is hectic while buying an already built house eases your burden so that you can move in to a new house without any hassle. But you should also consider the expenses for the building, maintenance charges, monitoring and preparing the rental agreement in case if you are planning to rent out an apartment.

Tax Benefits

When you borrow to buy an apartment or a built-up house, loan repayment entitles you to some tax deductions. If you buy a second house, the full interest paid is eligible for tax deduction. However, in such a case, the rental income is added to your taxable income. Holding a plot as an investment does not entitle you to any tax benefit, but you can still claim deduction for the interest paid. The interest paid on any loan for purchase of land which is vacant shall not qualify for tax deduction. However, if the plot is rented out, irrespective of whether the rental income is offered for taxation as 'business income' or 'income from other sources', the interest paid on any loan used to buy the plot can be availed of as deduction. There will be no tax benefit for repayment of the principal of such loans

Income Opportunity

If you want regular income, the only way is to buy a house or build one. You can rent out an apartment whenever you want and get 3-5 per cent value of the property as annual rent. This is not possible in case of plots. The choice between plot and house should also be based on the desired holding period and costs incurred in executing the transaction. If the choice is buying a flat, then there are various Residential projects in Lucknow that can be chosen. There are the best deals anyone could get.

Summary: Dilemma of investing in a plot or a flat is always there. One needs to weight the pros and cons. In most of the cases, the best option is to buy a flat.Paarth Infrabuild Pvt. Ltd.( Real Estate Company in Lucknow ) look forward to begin the endeavors from the state of Uttar Pradesh and planning across the cities like Lucknow, Allahabad, Varanasi, Noida, Kanpur, Greater Noida, and Ghaziabad and gradually expand throughout the entire North India.