Flat vs Independent House Calculator
Same budget, two very different assets: a flat that is mostly structure, or a house that is mostly land. Land appreciates; structures depreciate. See what that means over 20 years.
Verdict
Flat wins by $7.6K
- House value (yr 20)
- $743.6K
- Flat value (yr 20)
- $722.4K
- Land component
- $636.8K
- Structure component
- $106.8K
Maintenance totals: $48.0K for the flat, $76.8K for the house. Land is the engine, but flats rent out and resell more easily.
Asset value over time
Year-by-year table
| Year | House value | Flat value |
|---|---|---|
| 1 | $408,800 | $412,000 |
| 2 | $418,264 | $424,360 |
| 3 | $428,421 | $437,091 |
| 4 | $439,300 | $450,204 |
| 5 | $450,935 | $463,710 |
| 6 | $463,358 | $477,621 |
| 7 | $476,604 | $491,950 |
| 8 | $490,711 | $506,708 |
| 9 | $505,718 | $521,909 |
| 10 | $521,666 | $537,567 |
| 11 | $538,598 | $553,694 |
| 12 | $556,560 | $570,304 |
| 13 | $575,599 | $587,413 |
| 14 | $595,766 | $605,036 |
| 15 | $617,114 | $623,187 |
| 16 | $639,698 | $641,883 |
| 17 | $663,576 | $661,139 |
| 18 | $688,810 | $680,973 |
| 19 | $715,465 | $701,402 |
| 20 | $743,609 | $722,444 |
Two assets wearing the same price tag
For the same budget, a flat and an independent house are very different assets wearing the same price tag. The flat's value moves as one blended number, typically 4 to 6% a year in most metros. The house is a portfolio: land, which appreciates, often 8 to 10% in growing corridors, plus structure, which depreciates as it ages. Over 20 years that composition difference compounds into a wide gap.
The flip side never shows up in an appreciation chart: flats are easier to rent, easier to sell, and easier to own. If the two options end close in this tool, the flat's liquidity and yield usually deserve the tiebreak. Assumptions: both bought outright, values compound annually, maintenance summed without investment opportunity cost.
FAQ
Why do houses with land often appreciate faster than flats?
Because a property's value has two parts moving in opposite directions: land appreciates while the built structure depreciates, roughly 1 to 2% a year as it ages. An independent house is typically 50 to 70% land by value; a flat is mostly structure with a small undivided land share. More land share means more of the appreciating ingredient.
Then why does anyone buy flats as an investment?
Liquidity and yield. Flats sell faster, rent out more easily, and command better rental yields in most metros. They also carry no encroachment risk and less maintenance burden. A house is usually the better pure-appreciation asset; a flat is the better convenience-and-cash-flow asset.
What land share should I assume?
For an independent house in a city, land is commonly 50 to 70% of the price, higher in prime areas and lower on the outskirts where construction dominates. Land in growing corridors has historically appreciated 8 to 10% a year, which is why 9% is the default here.
What does this calculator leave out?
Rental income (usually favours the flat), transaction and registration costs, redevelopment upside for old flats in prime areas, encroachment and title risk for land, and any loan. Both options are assumed bought outright for a clean asset-versus-asset comparison.
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