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Buying Apartment vs. Building Home: Which one is Best for You?


buy an apartment or build a home
The most confusing question ever is "Should I buy an apartment or build my own home?" In India, home buying habits have undergone a paradigm change from independent residences to apartments. There was a time when people purchased a piece of land on which to erect their houses. 
However, when cities grew quickly in the last 20 years due to population increase, there was even less available land. Apartments were the answer, and they were the way forward. As they say, the rest is history!
The Indian real estate market has been completely overtaken by the apartment culture. While the fast-paced Ola-Uber youth of today favors apartments, there are still some people who want to purchase a parcel of land and construct their own homes.

In this Blog, we will cover the following topics:

  1. Scope of resale
  2. Investment potential
  3. Appreciation lag
  4. Safety vs privacy
  5. Convenience vs flexibility
  6. Amenities
  7. Tax sops

So, have you ever questioned whether an apartment or a plot is better for you? Let's get into the more detailed explanations.

Scope of resale

scope of resale | buy an apartment or buil a homeApartments are simple to sell since there is always demand. Apartments also provide a number of amenities and security features. 
Apartment buildings have a low percentage of undivided land because all the owners share it. However, a huge benefit of buying a plot is that the buyer gets to own the land and can build a new house to obtain better returns.

Investment potential

investment potential | buy an apartment or build a homeThe price of purchasing a home or a piece of land is entirely dependent on the area. Purchasing inside the city borders will be expensive, whilst moving beyond the city limits will be more affordable. 
Purchasing a plot is more affordable financially because it has lower overhead expenses than renting an apartment. Due to the limited area in major cities, apartments outnumber plots in terms of availability. Additionally, the bulk of builders concentrates on creating apartments, while only a few well-known builders provide structured developments. 
You must pay a sum of money or obtain a loan and make a series of EMI payments in order to purchase a ready-to-move-in flat. With a plot, however, you have the financial freedom to start construction based on your resources. 
Along with money, continual monitoring of the construction process is necessary while building a home. There could be significant costs as a result of lack of experience. There is a set price that must be paid to the builder in order to purchase an apartment. 

Appreciation lag

appreciation lag | buy an apartment or build a home An independent home's return on investment (ROI) rises over time, but there is a caveat. While land is an asset that increases in value, the value of a built structure decreases over time due to continuous use. Regular maintenance investments are necessary to maximize results. 
In contrast, apartments consistently generate a profit because of rising demand and routine upkeep by Resident Welfare Associations (RWAs).

Safety vs privacy

safety vs privacy | buy an apartment or build a homeWhile living independently requires paying for security out of your own cash, apartment communities include 24-hour security. Positively, plot owners are not required to share space with others. They have total privacy even though they reside in a community.

Convenience vs flexibility

convenience vs flexibility | buy an apartment or build a home'Build a home' or 'buy an apartment' must depend on convenience and flexibility factors. Therefore, to build one's own home, one must work with contractors, hire an architect, and obtain necessary local authority approvals. Everything is taken care of by the developer in the flats.

Plots provide you with the opportunity to select designs based on your budget, which is good. You always have the option to build a home even if you are unable to do so right now.


amenities | buy an apartment or build a homeThe majority of flats include features including security, a lift, and power backup. One can also choose to use exclusive amenities including a clubhouse, a swimming pool, and a gym. In contrast, accessing support infrastructure and amenities can be a little challenging in ungated communities. Plots in gated communities have access to all the facilities and amenities within the complex.

Tax sops

tax sops | buy an apartment or buil a homeFirst-time homeowners are eligible for particular tax benefits in the case of apartments. 
The tax deduction for interest is only allowed for plots starting with the year that construction is finished. Tax benefits are delayed since interest accumulated during the construction period can be deducted over a five-year period in equal installments beginning with the year the work is finished. 
You cannot claim a tax benefit for holding a plot as an investment, but you can deduct the interest paid. The land will not, however, be eligible for a tax deduction if it is vacant. The interest paid on any loans used to purchase the plot may be deducted if the plot is rented out, regardless of whether the rental income is reported for taxes as "business income" or "income from other sources." However, there won't be any tax advantages for paying off the loan's principle. 
The aforementioned points make it clear that choosing a property type mostly depends on three factors: budget, timeframe, and choice. So, if you decide to buy property conduct your research on these aspects.

Lastly, It depends upon the individual to decide whether to buy an apartment or build their own home. However, a decision could be taken based on interest and property research. 
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