Why is residential property investment a great choice?

It takes a lot of skills and knowledge of the market to invest smartly in real estate space. When it comes to investing in real estate, most people prefer residential property investment because it carries less risk and offers profitable rental returns.

If you’re curious about the other benefits that investing in residential properties has in store for you, read on to know the top reasons to invest in one today.

 

Higher and Consistent Rental Returns

One of the best sources of income for real estate investors is rental income and price appreciation of the residential properties. In addition, the market value of commercial properties may vary as per the market condition.

Today, residential properties come with all sorts of amenities, so it becomes easy to find tenants and have a consistent rental income. For instance, Aparna Maple in K Narayanapura, Bengaluru, is known for its excellent location, apart from being equipped with modern facilities. People are attracted to such a housing project as they find it beneficial for long-term investments.

 

Residential Properties Are Affordable

Investing in residential properties is still within reach of customers because of its affordable pricing and availability. Unlike commercial properties, these properties come at a reasonable price because of the high demand for housing in the country.

The home loan interest rate for residential properties is at an all-time low. Besides, RBI has recently announced a reduction in REPO rate, which make it easier for customers to avail home loan for these properties.

 

Hassle-Free Purchase Process

The whole process of purchasing a residential property is quite convenient as compared to commercial properties. You won’t have to wait for your property approvals. In terms of legal formalities, it is far less complicated than other property types.

You can count on your residential property for a steady source of rental income. Today, real estate companies guide you to the whole process of purchase, ensuring you have the best home buying experience.

 

Tax Benefits

Tax exemption is one of the top reasons why people invest in real estate. The rental income from residential property investment is not subject to self-employment tax.

Unlike commercial spaces, you won’t have to deal with complicated taxation process that involves direct tax, GST, and other taxes. In any case, make sure you consult a tax professional while purchasing a residential property to avoid any penalties from the government.

 

Requires Less Maintenance

Another great benefit of investing in residential properties is that you won’t have to worry about the maintenance. These properties are easy to maintain as the hosing complexes take care of the majority of facilities.

 

Sense of Security

A residential property will be your physical asset in difficult times. These assets may not give you immediate returns, but they are less volatile during tough times. No matter how catastrophic the situation, having a home of your own gives you a sense of security.

 

Exponential Growth In Future

There will always be demand for residential properties because of the huge need for housing in the country. It’s high time to invest in such properties as the residential sector is on a growth trajectory. According to a recent survey, most people would prefer to purchase a home than investing in other options as it gives a sense of security.

 

In Closing

These are some of the most prominent reasons why most investors choose to invest in residential over commercial properties. For incredible real estate investment opportunities in Bengaluru or Hyderabad, a trusted developer is a must.

Aparna Constructions is a premier real estate company with a commitment to quality and can help you with all your housing needs today.

Last updated on December 7, 2020

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