Should I be buying a house or a plot of land?

Real estate is probably the biggest investment one would take in their lives. It could be for various reasons. As an investor, one has to be cautious before making such a huge decision. 

“Should I be buying a house or a plot of land?”

You can often hear people asking this question. A purposeful investor will definitely have come across this query before making a decision. How does one approach this?

Here, we have laid out an organised and efficient approach towards this to help you understand and decide what’s best for you. 

The reason behind your interest

Most of us may be deciding to invest in our first home, while there are few who make a livelihood out of real estate investment. There are some people who may even be buying a home to leave a legacy for future generations.

Every answer will be different based on each circumstance. Therefore, we have put together certain points that will help you while you are making this decision.


An apartment or gated communities may be bounded, in the sense that the design has already been implemented.  An architect and developer have already discussed and laid out the plan for the structure in readiness.

 Houses have a predesigned layout

The same isn’t the case when it comes to buying a plot. Plots are more favourable especially when you are looking to build your own house or villa. One can enjoy the benefits of getting it built based on preferences.

Tax Benefits   

Taxation is very different for a plot compared to a house that has already been built. For both, it is important to have a good financial history. One should have a good understanding of the financial benefits of having either one. A plot loan is much harder to acquire when compared to getting a loan for an apartment.

Good financial history is necessary for loan sanction

A loan applied for a house will be given many exemptions for tax whereas a loan for an empty piece of land will have basic taxation benefits.


A major issue to keep an eye on before buying a plot is to verify that there are no land disputes over this piece of land. It is generally advised to make sure that your plot is within a gated community. This should be done in order to avoid dealing with issues related to illegal trespassing.

It is advisable to take all measures to avoid enroachment issues

When it comes to flats, issues such as these are already dealt with by the builder on behalf of its residents. However, even before buying an apartment one should be aware and verify all documents associated with it.

Resale Value

Plots that are bought within the city or preferred locations are usually sold quite soon at high rates because there is a huge demand from potential buyers with deep pockets.

Resale value depends on various factors

 When compared to plots, the desirability and appreciation of a house are comparatively relaxed. This is usually accounted for by the age of the building and general wear and tear.

The resale value for plots is definitely very promising if you are looking for a return on investment.

Earnings of your real estate investment

The monetary returns on investment for plots and houses are very contrasting. First off, one can receive payments by giving their apartment or house for rent on a monthly basis. For short-term monetary benefits, flats are ideal because they are also quite affordable.

Are you in it for long-term or short term goals?

Plots cannot offer rental income. This is a major difference between the two. Plots may not be able to offer monetary gain in a short time but the value of land increases faster than apartments.

Preferences matter the most

All in all, no matter what you choose it has to be something that works out best for you.

With a house, everything is mostly trouble-free because that is sorted out in advance and earning money is also easy. One can also enjoy taxation benefits. A plot certainly requires more attention to detail, but the reward for buying a plot can be much higher.

One thing to keep in mind for both is to take note of the surrounding locality, the neighbourhood and its infrastructure.

One way to come to a conclusion is to decide what is more important for you, long-term investment or short term benefits?

If you are considering long-term, then plots are perfect for maintaining a wealthy asset. But if short-term advantages are more appealing to you then houses are definitely the ways to go.

Also, read :

Real Estate Terms you should be knowing