Should a Second Home Owner Invest in Land or Flat?

Buying property for the second time has its own charm. You are more aware and have a fair idea about the things you need to do. You’ll have to consider several aspects too, like what are the tax implications of buying this new property and what kinds of home loan are available. HULT PRIVATE

But before thinking about all this, you need to decide on what your second property is going to be. Is it going to be a plot of land or flat? There are pros and cons for investing in either. In this article, we will try to weigh them out for you so you can make the right choice.

Buying a Plot of Land as a Second Investment


Buying a plot of land gives you complete freedom. You are free to take whatever decisions you want to with the plot of land you have purchased. You could choose to build a house or even rent the space out.

Additionally, the supply of land is lower than its demand, so its value is constantly rising. Buying a plot of land would definitely be a good business investment.

And even if you can’t buy an entire plot of land, you can invest in an independent floor in a building, where you can design and build your own apartment.


The problem with investing in land is that it tends to get involved in disputes over perimeter boundaries. Unlike a flat or house, where ownership can be proven by occupancy over a period of time, you will have to rely on papers and documents solely to prove your rights to land.

There are other problems as well, like non-availability of loans from most banks or financial institutions for the purchase of land.

Also, it is harder to rent out a piece of land and doesn’t bring much revenue either.

Buying a Flat as a Second Investment


An apartment will always bring in more rent and can be a separate source of income for you. Taking home loans from banks will also not be a problem.


Although it might seem like a good investment opportunity, buying a second house has a few cons. The value of an apartment goes down with time, as new houses keep coming up on the real estate market regularly.

Additionally, apartments are constrained by the builder’s designs. You don’t have much say in the design of the architectural aspects of the apartment.

So What Is It Going to Be – Flat or Land

Choosing a flat or plot of land as a second home owner depends on your personal needs and requirements. But from a more conventional point of view, buying an apartment would be the better option. It is bound to give you more returns and will make it easy for you to get a loan as well.


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