Investment means allocating the money in the belief to get some profit in the future.
Investment is done on the basis of ROI ( Return On Investment ) means the person who is investing the money will calculate the Return which he/she will be getting in the nearby future.
There are many types of investment but here we will look about property Investment of Flats vs Plot where to invest money.
We will also discuss here which type of property Investment would be giving you better returns considering the various other factors.
Note: For this blog, we have considered Mumbai as our Investment. Facts may vary we don’t take any responsibilities of fact and figure. So Mumbaikar’s you will be getting some sort of idea for your Investment.
Flats are a great option to invest money they are considered as one of the safest Investment. Here the investment and return both vary by multiple factors.
Like the property you are investing is ready to move property or under construction property. Ready to move property will be higher in the price and compared to under construction.
But wait we are here to know about Flat Vs Plot where to invest money
Yaa!! I know but before discussing Flat Vs Plot where to invest money m making sure that you would have some sort of information about this kind of Investment.
In plot Investment, there is a scope of High return compared to Flats but but but The risk you will be facing for Plot will far more than the Flats.
Below is the list of question and their answers would definitely clear your mind about Investment.
Hey Readers let get Started with the first one.
Flat or plot which is Flexible for Modification ?
Flat : Modification for the flats are not available in the case of ready to move flats, the interior which developers is providing and carpet area which developer is been providing you have to accept it but you have option in property which is under construction talk to Developers and get the thing done in your way so it is less flexible.
Plots : In plots, you can construct with your own according to your requirement. You are the one who will finalize everything from Interior to exterior all.
In Comparison of Flexibility of Modification Plot wins !!
Which will provide the best ROI (Return On Investment ) flat or Plot ?
Flats: Flats are been the best way of getting a good return by Investor. Know the best place to invest in 2019 and Invest by your self. Flats are the one which provides a moderate return between 10-14 percent on Ready to move property.
But you can earn a high return on flats which are under construction because you will be paying less amount of money compared to ready to move flats.
Plots: Plots provide High return compared to Flats. Before coming to any point please consider the fact that amount which will be invested here is a lot more than flats.
And if you are investing in plots you should be having enough knowledge about the market.
Let’s consider you have invested in a backward area then return would be definitely low but if you have invested in the plot which lies in an area which will be facing development in upcoming days then your investment would be having a high ROI.
Both flat and plot are best in there place so here its a tie.
Please Read This: BEST PLACE TO INVEST IN MUMBAI 2019
Flat or Plot which has a High-Risk Factor ?
Flat: Risk in Ready to move properties are least here investor have to just invest after a certain amount is paid then Investor becomes the owner and then possession is acquired by owner in a few days.
The risk factor is more than ready to move in under construction property here things like delay in possession or developer has not completed the project. So here investor has to bear the interest if he/she has taken the loan and rent where is he/she is living.
Plot: Plot has the highest risk it’s even more than Under construction flats.
No of things which increase the risk are Approval risk whether you will get the permission of construction or not and if your land is been acquired by someone else illegally.
Flats will be preferred in term of risk, the reason is Flats has a low-risk ratio.
How can you earn by these Investments ?
Flat: Here the income you get will be in the form of rent and it would be on an immediate basis.
And then it’s on you how much you charge and how you negotiate with people.
Plot : In plot before earning anything first you have to construct it according to your need whether it is a shop or house to give on rent.
So the process of ROI here is more time consuming then Flats
Again flats are the easiest way to earn some income on your investment
Which investment would be Benefiting In Tax the most ?
Flats : If you take a home loan for flats then you will get benefits in the principle rates according to section 80c and under sec 24 you can claim interest payment.
Plots: There is no tax benefit for plot investor. You will get the benefit of tax only when you have completed the construction of the property.
If you constructed the plot and then you are getting the tax benefits then it will be the same as Flats. So why to invest in plots if you are getting benefits in Flats.
Tax benefits will be provided to the flat owner so flats are in more demand
Please Read This: DID ACCHE DIN CAME FOR REAL ESTATE
Loan Interest Rates On Flat and Plot
Flat : People willing to take home or who want to invest in Home but want a loan to buy a home know the fact that Home loan has the lowest interest rates.
And it is easily available and even you will get 80 to 90 percent of the total money required for buying a particular home.
Let take an example if the cost of a home is 1cr* then you will be getting the loan upto 80 lacs to 85 Lacs ( It can vary in different conditions ).
Plot : Plot are considered in risk Investment so interest in it is also high and getting loan for plot is more complicated. Investment amount needed in the plot is way more than flats
The people with low investment plan can go flats and In Mumbai, Flats are preferred the most.
Which will provide the best Experience flat or plot ?
Getting a good experience totally depends upon the investment you make. Flats are providing better experienced compared to plot reason is you will get enough security, enough facilities in Flats.
A plot is also a good option if you have enough money to invest and Construct your plot according to your requirement
We have analyzed the facts and figure according to Mumbai. So In Mumbai having flat is most preferred there are many properties which will fulfill your needs with the best amenities in Mumbai .
Plots are very expensive in Mumbai and if you are a billionaire then only consider yourself for plot or else middle-class person can have flat.
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