Where to Invest This New Year, a Plot or a House?

Price appreciation:

Developing a plot is not as much difficult as constructing a high-rise building structure. Though, price rise highly depends on location, the price appreciation for plots are faster than that of ready-made properties. Moreover, a plot never gets affected by time but a building structure can get dilapidated over the time. Adding to it, there are limited layout options in an apartment.

It is not like the value of an apartment will not increase over the time, as location and infrastructure plays a key role in price rise for both apartments and plots. But, the price rise can get affected with the age of the building structure.

Scope for income:

The scope for income is there in both ways, whether you buy an apartment or you build a house. Putting an apartment on rent is much easier than renting a plot. Renting an apartment means you would get around 3-5 percent as annual rent on the actual property value, which is impossible to get for plots.

Besides, holding more than one plots or houses means you have to pay extra tax as you can officially show one house as your personal house and have to pay tax on rental income from other properties even though they remain vacant.