Are you looking forward to starting a better standard of living? It is probably known to all that buying a new home with modern features opens the path towards a lifestyle of our dreams. We tend to choose a house constructed by a reputed builder in a better location that will meet the modern-day conveniences. Hence, when it comes to the advent of a new form of living, buying a new home is the first step that most of us tends to take.
However, is this the only thing that you can expect from a residential property? Why don’t you start investing in residential properties and enjoy the benefits of the same?
With buying an apartment, you get assured ownership over the new home. However, investing in residential property generates passive income. Whether you invest in a residential flat in Kolkata or anywhere else, choose a property that will potentially guarantee you a high rate of return.
You need to check the growth quotient of the region where you are planning to invest in a residential property. If the region is lacking any sign of growth or promise, this will become a financial burden in the long run. On the contrary, a good investment, such as investing in residential flats in Kolkata in various regions (like Madhyamgram, Serampore, Tollygunge, Rajarhat, EM Bypass, etc.) will generate revenue for mortgage payments, cost of taxes, repairs, etc. through renters. It might become an essential channel for building wealth if you chalk out the perfect plan regarding the same. your planning goes well.
Here’s what you need to know about buying and investing in a residential property.
Buying & Investing: Understanding the Concept
Residential properties comprise of a defined land area consisting of flats or a stand-alone home constructed for individuals or families for dwelling. These are not to be used for commercial or industrial purposes. These spaces are essentially reserved for occupational purposes and involve residential use for a long duration of time.
On the other hand, an investment property can be a long-term or short-term investment. If we consider the short-term duration, the concept of ‘flipping’ a house comes in the picture. In this case, the property is bought and remodelled or renovated and is sold for a higher price.
One can also generate revenue by possessing the property and renting it to others, or selling the property at a time when the value has appreciated. For instance, if you buy a home in Kolkata close to the airport, good schools and colleges, the price of the property will be automatically high.
Apart from that, here are the features that differentiate both:
Buying a Residential Property
Investing in a Residential Property
Choose the correct property
Provides better living standards along with meeting the requirements of the family members
Possible Challenges: Prolonged bank payments, bad connectivity, poor locational advantages, etc.
Generates passive income
Caters to the growth of a region which in turn increases the value of a property for rental income or sale of property
Might be long-term or a short-term investment
Landlord enjoys the ownership of the property
Possible Challenges: Uneven flow of income, the value of the property might fall, liability for repairs and maintenance costs, etc.
We can explain this by taking a metropolitan city as an example. For instance, if you consider Kolkata, you’ll come across a plethora of residential projects. Hence, whether you are buying a home in Kolkata or investing in a property, it is essential to do a complete scan of the region you are specifically targeting. Whether North Kolkata or South, it is always necessary to know which areas will provide you with the best advantages to fulfil your requirement.
Make all arrangements, do thorough research and gift yourself the best living space.
Article Source: https://EzineArticles.com/expert/Jems_Hug/537975