Pros and Cons of Investing in Residential Plots

For most people buying a property and saving money for their goal is a tough task, an arduous one. But deciding between a residential plot and a flat is an even tougher question. While some people swear by the advantages of living in an apartment which offers quite a number of facilities (like swimming pool, gymnasium, park, garden, etc) while some others still believe that the independence a house offers is parallel to none.

My cousin staying in Pune is one such person and is currently looking for residential plots for sale in Pune. He too was confused about what to settle for and discussed his concerns with a number of people and eventually decided to go for residential plots.

Here are the Pros and Cons of investing in a plot:

Advantages –


  1. Low Entry Price
    One of the key advantages of investing in vacant land is that it is invariably cheaper than buying a built lot (of course in the same or similar area).
  2. Maximum Flexibility
    Vacant land is a blank canvas on which you can do whatever you like. While constructing a house, you can choose between having a big backyard or a bigger front yard. You can also spare some space for greenery.
  3. Long-term Benefit
    One more key benefit of owning a plot lies in the fact that in a long term a plot will not undergo any degradation but an apartment or a built house requires periodic maintenance and repairs (in the absence of which, they start losing their value).
  4. No Need to Actually Do Anything to the Property.
    It is not mandatory that if you are investing in land, you must construct on it. In fact, today’s undesirable land can become a highly desirable one in a matter of a couple of years. Considering the rate at which cities are expanding, it won’t take long before your plot in a bit far-off location becomes desired and interesting.
  5. Easy on Pocket
    Since plots are available in different locations and sizes. With some money, you can invest in a vacant land of your choice and can opt to construct a house only after a few years (when you have enough money).
  6. Privacy Concerns
    If you choose to construct a house on your plot, you don’t have to worry about sharing the floor with other occupants or privacy concerns. When your children are grown-up, you can always develop higher floors and also renovations are far much easier.

Disadvantages –


  1. No immediate cash flow
    You cannot expect an immediate cash flow from a vacant plot. This is undoubtedly the most notable drawback of investing in vacant land.
  2. Bank Loans Not that Easy
    Getting a bank loan for buying a plot is not as easy as it seems.
  3. No Facilities
    Apartments offer a number of facilities such as a gymnasium, swimming pool, garden, park, dedicated parking and so much more. You might miss them if you plan to construct your own house.

Now that you already know the pros and cons of investing in a residential plot, you are in a better position to take a wise decision. Simply focus on your own requirements and make your choice.

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