When it comes to investment – the ultimate goal is to make a profit. Therefore, the first step for any investor is to shortlist the available options. They may think to invest in textile, gold, agriculture, taxable bonds or any other available option that they think will be suitable for them. When they make a list of available options, they will check market trends (all trends historic trends, current trends and projected trends). Finally, they will make their decision as to which sector do they want to invest in. Historic profit trends show that in Pakistan, investment in real estate reaps maximum profits as compared to any other sector. It can generate an ongoing passive income and it can also be a good long-term investment if value increases over time. You may even use it as a part of your overall strategy to begin building wealth. If you are investing in real-estate property most common choice will be between buying 5 Marla plots or 10 Marla plots.
If and when you have finally decided to invest in real estate, the next step is to look for available varieties in chosen options. Investment in real estate has many combinations which can broadly be categorized into two categories; commercial and residential. You can invest in commercial or residential real estate depending upon your objectives and pocket size. After selecting the best suitable option, now it’s time to think about the varieties. Varieties can vary by size, location, stage of completion (e.g. plots or a constructed property) etc.
If you chose to invest in a residential property, despite of the availability of other sizes, the most common choice will be between buying 5 Marla plots or 10 Marla plots. Below, discussed are advantages and disadvantages of both that might help you make a decision;
Advantages to buy 10 Marla plot:
- In most average family sizes, for people who afford to buy a 10 Marla plot, if you buy a 10 Marla plot, you don’t need to move as your family size increases. You are actually preparing for it in advance, instead of being forced to buy a move-up property. For instance, you buy a 10 Marla plot and construct a home. Now, you can easily grow into it, as compared to house of 5 Marla
- In case, you have a plan to setup office at home. 10 Marla home provides flexibility to make a spare room (home office). Therefore, when it comes to buying a home. Buy more than you need. If not useable right now, it will help you make a good profit in future.
- Home at 10 Marla plot will make more room to breathe. Technically speaking, you can leave more space for ventilations and setbacks
- If you are living in a joint family, you need more space for storage. 10 Marla home will provide you that
- In case, if you have a plan to sell your home in near future, you will get higher sales price (more proceeds from a sale). Let’s discuss this with an example, suppose a home with an extra bedroom (or bathroom), it will likely fetch a higher sales price too. Though you’ll probably have to pay extra yourself when you buy it, but the sale will also return more money (profit)
Disadvantages of 10 Marla plot:
- Logically speaking if your family size is small, then there is no need for unnecessary or unwanted space
- More space you require, more expensive it gets, Hence, it will be unaffordable if you overextend yourself
- One of the disadvantages of a 10 Marla plot over a 5 Marla plot is that; utility bills will be higher. Put simply, the heating, cooling and water bills, etc. will cost you more
- As you know, more the space, more will be the decoration. For instance, a large home will require a lot of (expensive) furniture, carpet, flooring, appliances, paint, artwork, and more. Conversely, a small home will make decorating a relative breeze. Therefore a building in 10 Marla plot will be harder to decorate
- Home at 10 Marla plot will require more maintenance. When something breaks or needs repair, such as a roof, paint, etc., it’ll set you back more. And it’ll probably happen more often because the presence of more things increases the chances of maintenance
Advantages of 5 Marla Plot:
- If your income is less, you can get a cheaper house with lower monthly payments. ]
- Sometimes it is better to prefer locality over size. You might be able to buy 5 Marla plot closer to the city center than 10 Marla plot
- If your family size is small, you have no need to buy a bigger house than your requirement
- The utility costs will be lower, and will require less maintenance
- It will be easier to decorate and manage a 5 Marla house as compared to a 10 Marla house
Disadvantages of 5 Marla plot:
- You will have no options to add a rooms unless you can build (at a large cost)
- The storage space will be limited
- Less space to entertain family and friends
- The concept of private spaces has crept in the Pakistani society lately. Every child wants to have a space that they can call their own to use for studying, entertaining their guests, spending spare time etc. So sooner than later all family members will require their own space so it is better to prepare for it in advance
All these factors boil down to two things, first and foremost on the pocket size and then personal preferences. Hopefully, if both fit then the arguments presented above will help you make the best decision for yourself.