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The Pros and Cons of Plot vs Flat Investments

The Pros and Cons of Plot vs Flat Investments

When it comes to investing in property, there are two options available; plot and flat. Both of these investment types have their pros and cons which we’ll go over in this article so you can decide which type works best for you and your budget.


Plot Investment Advantages

1. With a plot investment, you have the potential to make a lot more money in the long run. 

2. It can be easier to get financing for a plot investment than for a flat investment. 

3. You have more control over what you do with your property with a plot investment. 

4. You can often get a lower interest rate on a loan for a plot investment than a flat investment. 

5. There is usually less competition for plot investments than flat investments.


Flat Investment Advantages

1. Flats are a finished product, so you know exactly what you're getting. 

2. They're usually easier to finance than a plot of land. 

3. Flats are easier to maintain than a house or a piece of property. 

4. You can usually rent out flats more easily than you can rent out the land. 

5. Flats typically appreciate more quickly than land does.


Drawbacks to investing in plots

1. You can't always predict what the land will be used for in the future, which could lower its value.

2. The land may be difficult to develop or build on, making it a less attractive investment.

3. Plots can take longer to sell than flats, so you may have to wait longer to see a return on your investment.

4. Prices for plots can be more volatile than for flats, so you could see greater losses in a down market.


Drawbacks to investing in flats

1. Flats are often more expensive than plots, so you may not get as much return on your investment.

2. Flats can be harder to sell than plots since there are often more flats on the market than plots.

3. Flats may not appreciate as much as plots, since they are often closer to city centres where land is more expensive.


What are the key features of a good plot?

When you're looking at plots of land for sale, there are a few key features you should keep an eye out for. Firstly, you want to make sure the land is buildable - that there are no zoning restrictions that would prevent you from putting up the structure you have in mind. Secondly, you'll want to take a look at the surrounding area and see if the plot is in a desirable location. Is it near good schools? Is it in a safe neighbourhood? Is it close to public transportation?


How does plot development affect returns?

As developing a plot is easier, it has more takers, therefore, it is easy to exit your investment when you want to. A plot is expected to appreciate exponentially as compared to a flat due to the vanishing availability of space in cities these days. Research the market enough to know the actual value of a plot. Do not just blindly rush to buy a plot just by looking at its cheap price.


Experts say that plots appreciate faster than apartments. This is mainly because plots are less in supply in the market. Age does not affect your investment in plots, as it does in the case of apartments. Appreciation depends on the location and proximity to big infrastructure projects. Also, during stable market conditions, the worth of a plot rises with time.


Tips on When to Invest in Plots, Flats, Both, or Neither

The best time to invest in plots and flats is right after your house is built. After your home is completed, you should think about putting up one or two plots. You can put up a couple of plots on the same lot, but you want to put some at the front and some on the back. This way, your neighbours can't see you and you don't have to worry about getting into the backyard. 

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