Investing in real estate is a major decision, and deciding whether to buy a farmhouse or a plot can be difficult. Here are the essential factors to keep in mind.

Location

• Farmhouse: Usually located on the outskirts of Tier 1 cities, away from the hustle and bustle. Transportation can be a challenge.
• Plot: Easier to find in Tier 2 cities with ample space. In Tier 1 cities, plots are available but very expensive.

Purpose

• Farmhouse: Often bought as a second home or for lifestyle reasons. Can be used for renting, like hosting weddings and other events.
• Plot: Typically bought to build a home. Mainly for end-use or investment.

Land Area

• Farmhouse: Large areas, usually at least an acre (43,560 sq ft) and can go up to five acres. Only 20% can be used for building.
• Plot: Smaller areas, around 1,500 to 2,000 sq ft in metropolitan cities.

Pricing

• Farmhouse: Cheaper per sq ft than plots but requires a larger total investment. Starting at Rs 600 per sq ft, a 2-acre farmhouse can cost around Rs 5.5 crore.
• Plot: Expensive, especially in prime locations of Tier 1 cities, costing between Rs 10,000 and Rs 30,000 per sq ft. A 1,500 sq ft plot could cost around Rs 3 crore, not including construction.

Restrictions

• Farmhouse: Many states have rules for buying farmhouses. For example, in Maharashtra and Gujarat, you need to buy at least 11,000 sq ft. Only farmers can buy in some states like Karnataka and Himachal Pradesh.
• Plot: No restrictions based on profession. Anyone can buy a residential plot.

Amenities

• Farmhouse: Often come with amenities like a swimming pool, patio, barn, and fireplace. Usually, an already constructed property needing some customization.
• Plot: Basic amenities like electrical, water, and sewage lines. You have to build everything from scratch.

Return on Investment

• Farmhouse: Good potential for extra income by renting for events. Popularity is increasing, leading to rising prices.
• Plot: Steady appreciation in value, especially in metro cities. Cannot be leased for commercial use but can offer good returns over time.

Choosing between a farmhouse and a plot depends on your needs and goals. If you want a second home with potential rental income, a farmhouse might be better. If you aim to build a home in a city, a plot might be the way to go.