Investing in property is considered to be a better option than depositing your money in bank for a rather low rate of interest. The rent and the appreciation acquired through property investment are much higher as compared to the interest rate offered by banks.
The idea of investing in residential property has been growing at an enormous rate. Owing to continuous increase in population and shift of people from rural to urban areas, demand for accommodation is ever rising. Also, with young generation wanting to live separately after marriage and lot of youngsters studying or working outside their home towns, residential properties are in great demand. Thus, residential properties are likely to be a good option for investment and are preferred over commercial properties.
Advantages of Residential investment over commercial investment:
There are more fluctuations in commercial properties than in residential. That is why; more and more people are buying small or large residential properties. Lot of people take easy loans from banks and financial institutions, buy a property and lease it out to some good property agent. Generally, they get paid more than the loan installment, they have to pay. Thus, without making any sizeable investment, they are able to build a good asset for themselves, the value of which keeps appreciating.
Another advantage of a residential investment than a commercial one is that residential properties are engaged much faster. Property agents also think twice before taking a commercial property on lease. This is because they know that a commercial property may remain vacant for a long period of time. On the other hand, there is always a long queue of people seeking residential properties on rent. While property agents generally make good profits on the leased properties they acquire, they have much lesser chances of getting good returns on commercial properties.
It is important that one carefully studies the types of options available for financing. This is a critical factor when it comes to getting returns from investment in residential properties. Banks are offering various types of financial schemes for residential investments. It is always advisable to seek advice of financial consultants before opting for a scheme.
What has made investment in real estate more attractive is the fact that several reputed business houses have diversified in this sphere. With their huge capital backing and infrastructure, these big companies are able to make sizable allocations for research and development and thus, develop good properties at attractive prices. It is because of these reputed players in real estate business, investors are confident that they will not be cheated and they have a fair chance of getting good returns.
There is no let up in the trend of investments in real estate, especially housing. Needless to say, number of people looking for rental accommodation will keep on increasing. Therefore, real estates will continue to be one of the best investment options.