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Buying a plot in any part of India can be challenging unless you have sound financial backing for initial investment. Banks do offer a loan for the purchase of a plot and even for construction such as SBI Realty, HDFC Plot Loans, Indian Bank Plot Loan etc. However, the associated tax benefits are subjective to whether you complete constructing a house on the plot or not, and even if you do, the benefits are offered only for the first year.
On the other hand, in case of flats, loans are easier to avail, albeit, at similar interest rates. However, flat purchase attracts a lot of tax benefits, especially for first time home buyers.
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