I read a post on studio or one bed apt. I’m to extent aware of investment for a plot but I’m not aware of investment in studio/one bed. I’d like to the comparison between investment for a plot and investment for a studio/one bed apt? Which option is good in short term and which is good in long term?
Which option is better for investment purpose buying a house or apartment/plot
Plot has no maintenance unlike flat. List goes on but it depends upon yourself, their is also option of commercial shop available, depends upon type of investment and reason your buying.
Thank you abdul ali. The purpose is just an investment. I realise a lot of activity like selling and purchasing goes on about plots relative to flats. Thats why i wanted to know why it is so. Are flats less profitable than plots of same amount or flats are less in numbe that they selling/purchasing is relatively less?
Generally people prefer plots over apartments for investment purposes.
Lets put it in another way What are the drawbacks of buying an apartment Which one is easier to dispose of plot /apartment What is the comparative margin of profit/loss in established area
Mohammed thanx for reshaping and putting my question in a better way:)
Dear respected brothers, I am no expert but from my previous experience flat is good dependant if you have a small amount of money to invest and you would like to buy in a reputable society i.E dha / bahria for investment purposes, as you have it on rent and sell once you get your money back in a couple of years. It is difficult to find a cheap flat in highly reputable sectors - if you are buying a flat then i would recommend you to try to look for flats which are ready to rent, and calculate where you can make your money what you invested within 5-6 years as these are good investments due to by then you will have got your money plus the price of flat overall may have increased. However, the downfall of flat is that you may get mucky tenants that may not pay rent on time, plus when tenants leave you will have to pay expenses such as building maintenance, may need to buy furniture etc... Also drawback is the whole block is still not yours and building is not the same after a couple of years so you may need to spend money on structural work, which can be costly and you may not get your money back (this is often rare though - happens in rundown flats).
If you want to buy flat, then i would recommend you buy a commercial shop as in terms of investment its the same as flat the only difference is that their is no drawbacks on maintenance issues as the tenant makes the shop into whatever they want so you don't need to go out furnish the shop as all you need to do is give them an empty canvas shop and they pay you rent. Less headache compared to flat - (just my personal opinion from my experiences)
Or your other option would be to buy a plot. The reasons why people buy plots are due to you can easily at least double your investment within 5-6 years and once you have possession you can start building straight away. Its better than having money in savings banks with poor interests rates and yet interest is haram so whats the point in that? downfall is that your plot price may not increase until they announce development charges which you may have to pay dependant on if the price has not increased, then you need to question is this investment worth it as your plowing more money in without absolute no return on investment. however, The price on plots increase quite dramatically so its a good investment, but it depends upon the society also.
For investment purposes, i would recommend you buy a commercial shop where you can slowly see a return on investment every month. after you get your money back, check if the overall value has increased? then sell and move onto something else.
Sir in my opinion,apartment in less budget is a very attractive option because an apartment can generate rental income which a plot cannot…