Following factors can help you decide whether you should invest in flat or plot in Bangalore.
Liveability of area where you are getting a plot
Since Bangalore is growing rapidly, it is difficult to find a good deal for plots which are in the heart of the city. Especially areas like Koramangala, Indiranagar, Yelankha, Malleshwaram etc. They will be overpriced and on a higher side for working professionals looking for buying for self-use. Whichever area you are getting a plot in, you should look at liveability index of the area in terms of proximity from basic infrastructure like nearest school, market, hospital, metro station etc and decide if investing in a plot is worth consideration.
Floors allowed for construction
If a plot allows construction of only 3 to 4 floors, you may not have a lot of units to be let out on rent. Also, add to it your construction cost in raising those floors. Instead if you invest the same amount in buying multiple apartments in better locations, rental yield can be higher. Resale returns can also be higher from those apartments.
Width of road facing the plot
If you are buying the plot for self-use, it is important to factor in locality and infrastructural amenities. If the road facing the plot is not wide enough, real estate prices may not appreciate fast as compared to an apartment investment in a more spacious location.
Any construction done
You should check if the plot you are considering to buy had any prior construction done on the site. And all paper work related to construction/demolition approvals were taken by your Seller or not.
Gated Colony or Boundary Wall
Does the plot sit inside a gated community or has a boundary wall? It helps in adding to the security of the property. Open plots require added investment for making your property safer for inhabitants.
Type of Ownership
Freehold or leasehold. Are you getting a freehold ownership of land or leasehold? In freehold, you get to sell it to whoever you want in future and have absolute ownership for indefinite period. Leasehold plots will cease to have ownership rights unless the lease is renewed with the Seller.
Basis these criteria, you can weigh in pros and cons of whether to invest in flat or plot and can decide accordingly. Compare real estate projects on this platform before investing. For continuous inputs on the same, you can subscribe to our blog using top right subscribe box.
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This post first appeared on the Quora thread: Which is better to buy in Bangalore, a flat or a plot?
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