How to decide between buying a plot or house?

How to decide between buying a plot or house?

It is not an easy thing to decide for real estate investment. It is one of the largest purchases made by an investor. Therefore, it is very crucial to

It is not an easy thing to decide for real estate investment. It is one of the largest purchases made by an investor. Therefore, it is very crucial to follow a systematic approach.
The biggest challenge is to decide whether one should buy a house or choose from open plots for sale? Which investment will be better and more profitable in the long run?
A cautious investor always asks this pertinent question. And it is not easy to give an answer. Some things you should consider for a properly informed decision.

What has been your investment journey so far?

Every investor is at a particular stage of the investment journey. It could be the first-ever investment for some people.
For some others, it could be an advancement towards a better livelihood or status upgrade.
For some people, it could be an investment opportunity.
Somebody might be going into a property deal just because he wants to leave a legacy for the forthcoming generations.
Whether a row-house or bungalow is fine for you or open plots for sale depends on your existing state of investment.
The blog gives you some key points to arrive at the right decision.

Flexibility of construction

When you buy an apartment, flat, or duplex, there is a limited room for design and development. The plan and layout will be decided by the developers and architects in advance.
When you construct a house from scratch, you have the full flexibility and freedom of implementing your personal ideas and plans.

Earnings from investment

Indeed, your primary objective is to buy a space to live, but you can not ignore the earnings on the investment.
A wise investor is always clear on the investment returns. He never gets into something he feels fishy about.
You should be clear about the monetary benefits or the investment.

Rental income

A flat or house generates rental income from the first month of purchase.
You cannot expect it from open plots for sale. However, the value appreciation happens much faster if you purchase a plot or land.
So, if you are looking for short-term investments, then a flat would be a better choice.
One way to make a plot profitable is to construct a few floors and rent them out. It involves greater risk, though.

Resale value

As it is mentioned earlier, the appreciation of the face value of a plot happens quite fast. Hence, its resale value is more.
The value of a house increases at a slower speed because of the wear & tear and also through damages. Sometimes, it depreciates instead of appreciating if there are drastic changes in the economic scenario.
Hence, from the resale point of view, buying a plot is an appropriate decision.

Legal complexities and safety

The risk of fraud or other legal disputes will be higher in the case of plots. Hence, it requires more care to deal with open plots for sale as compared to a flat or house.
Civil or criminal disputes associated with land will bring you in deep trouble. A flat or house has a minimal risk of that sort.


At the end of the day, it all depends on your personal choice or preference. The rewards for plots are higher but you will prefer a house if you need shelter immediately.
When you want to invest money for a long-term basis, then buying a plot will be your preference. Even if you get it at a higher price.
Whatever decision you take, it is important to check all legal matters thoroughly. Do not leave any loose ends.