Buying versus investing in a residential property?
Looking to start a better standard of living? Everyone may know that buying a new home with modern features opens the way to the lifestyle of our dreams. We tend to choose a house built by the well-known builder in a better location that meets modern amenities. Therefore, when it comes to the emergence of a new way of life, buying a new home is the first step that most of us tend to take.
However, is this the only thing you can expect from a residential property? Why not start investing in residential real estate and enjoy its benefits?
When purchasing an apartment, we guarantee the ownership of the new home. However, investing in residential real estate generates negative income. Whether you are investing in an apartment in Calcutta or anywhere else, choose a property that guarantees a high rate of return.
You should check the growth rate in the area where you plan to invest in residential properties. If the region lacks any sign of growth or promise, this will become a long-term financial burden. On the contrary, good investment, such as investing in apartments in Calcutta in several areas (like Madhyamgram, Serampore, Tollygunge, Rajarhat, EM Bypass, etc.) will generate income from mortgage payments, tax costs, repairs, etc. Through tenants. It can become a primary channel for wealth creation if you develop an ideal plan in relation to it. Your planning is fine.
This is what you need to know about buying and investing in residential real estate.
Purchase and investment: understand the concept
Residential properties include a specified area of land consisting of apartments or a separate house built for individuals or families to live in. These should not be used for commercial or industrial purposes. These spaces are mainly reserved for professional purposes and include long-term residential use.
On the other hand, investment property can be either a long or a short term investment. Given the short term, the concept of “flipping” at home is shown in the photo. In this case, the property is bought, remodeled, renewed and sold at a higher price.
You can also generate income by owning the property and renting it to others, or selling the property at a time when the value has increased. For example, if you buy a house in Calcutta near the airport, and good schools and universities, the price of the property will be high automatically.
Apart from that, here are the characteristics that distinguish both:
Buying a residential property
Investing in residential real estate
Choose the right property
It provides better living standards and meets the requirements of family members.
Potential challenges: long bank payments, poor communication, bad site advantages, etc.
It generates negative income.
It serves the growth of a region that in turn increases the property’s value for income from renting or selling the property
It could be a long or a short-term investment.
The owner owns the property.
Potential challenges: uneven flow of income, property value may fall, responsibility for repair and maintenance costs, etc.
We can explain this by taking an urban city as an example. For example, if you are thinking about Kolkata, you will encounter many housing projects. Therefore, whether you are buying a house in Kolkata or investing in a property, it is necessary to conduct a complete analysis of the area you specifically target. Whether it is in North Kolkata or in the South, it is always necessary to know which areas will provide you with the best benefits to meet your requirements.