Whether you want to buy a flat or a plot, in both cases you are making a huge investment. So, it’s not that simple to make a decision. Nowadays, our country has huge investment opportunities in the real estate sector. Again, the possibility of making a blunder is also high.
Are you in a fix to decide whether to invest your money in a flat or a plot? Then please read this blog because here we’ll discuss why you should buy a flat instead of a plot in Bangladesh.
What are the Differences Between a Plot and a Flat?
Let’s get to know the basic differences between a plot and a flat.
Sl No.
Point of Difference
Plot
Flat
1.
Definition
A plot is a piece of land where you can build your dream house according to your preferences.
When the builders build multiple houses in a single building that is built on a piece of land, each of these houses is called a flat.
2.
Value
The supply of plots is limited. So, they have greater value and the appreciation rate is also greater in the long run.
The condition of flats deteriorates over time. So, their value also decreases.
3.
Flexibility
You’ll enjoy a lot more flexibility when buying a plot and building your house there. Because you can have all things done according to your convenience.
In the case of flats, as the structure is pre-built, you’ll get limited flexibility.
4.
Financial Assistance
Getting financial assistance to buy a plot is quite tricky.
You can easily get financial assistance to buy a flat because real estate agents are affiliated with various banks.
5.
Earning Potential
You can get a rental earning from your plot after developing a house on it, and then rent that house.
You don’t have to build anything because flats are ready-made, and you can earn rental income from that after renting that.
6.
Tax
You can enjoy tax benefits from your land only after you’ve built a house on it.
You can enjoy tax benefits from your flat during paying principal repayments, home loan interest, and the like.
7.
Another Name
A plot is also known as land.
A flat is also called an apartment.
Recommended Reading: A Complete Guide to Buy a New Flat in Bangladesh
Is it Better to Buy a Plot or a Flat?
You need to consider some factors when you want to invest in any property.
- Legal Issues
Your lands can fall into various legal issues and face different accidental situations. Don’t keep your plots just like that in a distant location, anyone can try to occupy your land in absence of proper security. That’s why buying a flat in your neighborhood is safer where your builder will handle everything.
- Tax
In the case of plots, you will enjoy tax benefits only after building a house on your plot. While flats will let you enjoy tax benefits while paying monthly installments.
- Responsibility
When you are planning to buy a plot, you need to manage other things too such as appointing an architect to plan your house, or a contractor to finish its construction. Again, you need to manage the financial issues, and construction matters, keeping communication with local organizations or authorities, contractors, and others.
Buying a flat makes your job a whole lot easier. Your appointed real estate agent will take over all the responsibilities and will handover you the apartment only after it is completed. You need to only take care of the furnishing activities of the flat, not its construction.
- Basic and Extra Facilities
If you purchase a piece of land and make a house on that, you need to make all necessary and extra arrangements like water, power backup, security, maintenance, and extra facilities like a perk, gym, or swimming pool.
Whereas a flat will give you basic facilities, as well as, extra amenities. So, purchasing an apartment is a beneficial choice.
Please read this blog to know the benefit of flats in different parts of Bangladesh Best place to buy a ready flat
- Financial Assistance
Getting financial assistance to buy a plot is quite challenging. Conversely, you can easily get financial assistance to buy a flat because real estate agents are affiliated with various banks. Banks are more eager to give loans to clients of reputed real estate companies.
Recommended Reading: How to buy a flat by getting a loan from a Bank
- Profit
Plots won’t pay you off until you begin making your house on them. If you buy a readymade flat, you can make a stable rental profit. You can rent out a flat to earn cash whenever you like, but it won’t be possible with lands or plots.
- Possession
You can get ownership of your plot as soon as possible while getting possession of your apartment might take months or even years. Even in the case of plots in a municipality area, you’ll get possession before an apartment.
- Flexibility
You’ll enjoy a lot more flexibility when buying a plot and building your house there. Because you can have all things done according to your convenience. In the case of flats, as the structure is pre-built, you’ll get limited flexibility.
- Value
The supply of plots is limited. So, they have greater value and the appreciation rate is also greater in the long run.
Conversely, the condition of the flats deteriorates over time. So, their value also decreases.
- Improved Living Standard
Owning a plot will let you enjoy an improved living standard because the land is considered a symbol of wealth. Plots don’t have any space limitations, you can build your house on them according to your convenience and based on your family size. Thus, having your home can raise your living standard in comparison to having your flat.
Read Also: Buying a Flat vs a House: Which is Better in Bangladesh?
Final Words:
Buying plots and buying flats have their advantages and disadvantages. Still, the advantages of buying a flat in Bangladesh are plenty that you can see from the above discussion. So, you must have understood why you should buy a flat instead of a plot in Bangladesh. Please contact Best – Tech Properties Ltd for further assistance.
Bonus part: If you need to arrange a flat then read this article How to make your first flat looks beautiful
Frequently Asked Questions
Yes, buying a flat can be a good investment in Bangladesh because the purchase rate is low and the value of real estate property is at an all-time low. You can buy a flat at an affordable price, and getting bank loans is also easier as we‘ve discussed above. Again, you can rent your flat out any time after you’ve bought it and can earn rental income.
Yes, you can do it because it can become your regular income source after buying if you give it on rent. Because the demand for living places in Dhaka is increasing over time with more people coming here every day from different parts of Bangladesh for study, employment, treatment, and other purposes.
You’ll get your answer if you go through this blog.