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Apartment or plot: what to buy first?
A plot is land you build on later. An apartment is a home you live in. They need very different checks.
Many families dream of “our own land”. It can be a good choice, but a plot and an apartment are different purchases: one is ready to live in (or soon will be), the other needs money, approvals and time before it is a home.
Apartment vs Plot, side by side
| Factor | Apartment | Plot |
|---|---|---|
| Live in it | Yes, at handover | Only after you build |
| Loan | Home loan within RBI’s loan-to-value caps | Plot loans are a separate product; banks generally lend a smaller share and some lend only on approved layouts |
| GST | 5% or 1% if under construction; none if ready | None on the land itself (CGST Act, Schedule III); building it later involves GST on materials and services |
| Key checks | RERA registration, approved plan, title, carpet area | Clear title, land converted for residential use, an approved layout, khata, RERA where the layout must register |
| Upkeep | Society handles common areas; you pay maintenance | You guard against encroachment and keep it clean |
| Tax (old regime) | Interest and principal deductions on a home loan | Not available for land alone; they apply once you build and occupy the house |
Our honest verdict
Who should pick which
Apartment: a good fit if…
- You need a home to live in within a few years
- You prefer security, lifts and shared amenities taken care of
- You want a standard home loan and its tax benefits
Plot: a good fit if…
- You already have a home and want land for later
- You have the money and time to build, and to supervise it
- You are confident checking title, conversion and layout approvals
FAQ
Questions buyers ask
What is land conversion?
In Karnataka, agricultural land must be officially converted for non-agricultural (such as residential) use under the Karnataka Land Revenue Act before houses can be built on it. Ask for the conversion order.
Do plots come under RERA?
Yes, plotted layouts are “real estate projects” under the RERA Act when they exceed 500 sq m or eight plots, so they must register. Check the K-RERA portal for the layout.
Can I get a home loan to buy only a plot?
Banks offer separate plot loans, often with a lower lending share than a home loan. Some offer a combined plot-plus-construction loan. Ask your bank about its own rules.
Is a plot easier to maintain?
There is less to repair, but more to watch: boundaries, encroachment, weeds and local tax. An apartment shares upkeep through the society.
Still weighing it up?
Tell the Reeva team what you are deciding between. We will call back and talk it through honestly, with no pressure to buy.