In India’s cities, apartments are now the most common type of property available. Their appeal can be ascribed to a variety of factors, including but not limited to modern design, contemporary amenities, and improved security.
Additionally, the developer typically takes care of maintenance concerns including problems with the provision of water and power. Therefore, unless you want the freedom to construct your own home, flats may prove to be the greatest choice if you are buying a property for end use. You have many options to pick from, based on your interests, location, and money, as these units are widely accessible.
Scope of Earning/Income Opportunities
If you have a home loan and do not intend to move into the home right away, you can rent it out and stop paying the EMIs.
An apartment has a higher resale value and a wider customer base than a plot of land or a house, which is another benefit of investing. Finding a buyer for your home is usually easier than for a single house or a residential plot because demand for these units is typically the highest of all property kinds.
A flat might, however, appreciate at a slower rate than a plot. Usually, the value of the land increases in price. If you consider the wear and tear over time, the structure may also experience some degree of depreciation.
You are eligible for several tax advantages when you take out a home loan to purchase an apartment. If the property is meant for personal use, you are eligible for a tax deduction on the interest paid of up to Rs 2 lakh every fiscal year. In addition, the principle payment is subject to a 1 lakh rupee deduction.
One must keep in mind, though, that if one intends to rent out the property they have purchased, the rent received will be regarded as income and will be subject to taxes.
A studio apartment is a compact residence with a combined living room, kitchen, and bedroom. This home style has gained popularity due of the desire to own real estate, especially among single workers.
Scope of Earning/Income opportunities
A studio apartment typically generates better rental income than even a 2bhk or 3bhk. This is primarily due to the fact that they are fully furnished and offer more amenities than typical flats.
The capital value of these flats is likely to increase. The demand for studio flats has increased significantly over the past few years as a result of the increasing migration to cities that are driven by IT/ITeS.
Studio flats are eligible for the same tax deductions as regular apartments.
A furnished flat that offers amenities for everyday usage and is offered for short- or long-term stays is referred to as a serviced apartment. In some cases, these flats are more affordable than comparable hotel rooms. This area of real estate has seen a significant increase in demand ever since the country’s information technology boom began and international travel became cheaper.
Scope of Earning/Income opportunities
Serviced flats provide substantial returns with very little risk as compared to residential properties. Due to the fact that you can receive a fixed rental income, serviced apartments are a safe investment. You can sign a long-term lease that requires little management and upkeep.
Serviced flats are eligible for the same tax deductions as rented apartments.
People who want the privacy of an independent unit but also want to avoid the burden of building a home prefer independent houses or villas. The absence of security, power, and water backup, which are often provided by social complexes, is one of these units’ biggest negatives. Today, though, developers are selling similar apartments in gated communities with both exclusive and communal amenities.
Scope of income-generating
Independent homes or villas might not appreciate in value as much as a block of land or even an apartment. This is partly because there is a huge initial investment required, and there is less demand than there is for flats.
Such units typically have much higher monthly rentals than apartments. However, it is challenging to locate tenants because of the hefty price tag attached.
The tax consequences are the same as those for apartments.
Over the past few years, buying a weekend or vacation house has become increasingly popular. Higher disposable earnings enable people to purchase multiple properties, particularly ones that will be used as a vacation home for yearly family vacations.
The ability to generate more rental revenue from vacation homes is a significant benefit of doing so. Vacation houses sometimes draw a lot of travelers and tourists during the region’s busiest season if you pick a decent location. The mortgage and other costs associated with owning the property can be paid with the rental revenue earned.
Given that there is no outstanding loan on the second home, the interim finance minister eliminated income tax on rent from the second home, which is advantageous for people who own two homes.