Is it Better to Invest in Residential or Commercial Property in Bangalore?

Are you looking to invest in some residential property in Bangalore? You’re going to be spoilt with choices as the city is dotted with modern housing projects. You can always opt for apartments like Shriram Southern Crest or Valmark Orchard Square to avail every possible amenity. As these projects have quick access to hospitals, schools, and markets, their rents are cranked up high.

How is investing in a property different from buying one?

If you are looking to settle for your dream home, it is a very fulfilling pursuit. After all, who wouldn’t want to live in a fantastic location and that too in a thriving city like Bangalore. But should you want to earn some money from that property, your purchase would be deemed as investment. You can invest in a residential or commercial property. You can also mix your options: a mixed use refers to simultaneously pursuing residential and commercial purposes.

You can always work on your choices. Suppose you find Shriram Southern Crest just a tad expensive. Do not despair—you can always go for Valmark Orchard Square, which is also located in JP Nagar and offers great properties with smaller price tags.

You can earn profits from real estate by either renting it out or from appreciation in property prices.

Advantages of investing in commercial property

There are different kinds of commercial property. It can be a shop, a shopping complex, an office, a warehouse, an industrial building, or any building that is used for business purposes. Here are the reasons why investing in commercial property is a good idea:

  • Commercial properties fetch a better return on your investment. You can expect to get 6%–10% of the purchase price annually from the rent. This rate is quite lower in case of residential properties.
  • When you lease out a commercial property, the lessee is accountable for maintaining both the interior and the exterior.
  • In India, business places are usually rented out without any fittings or furniture. Some tenants pay extra rent and pass that responsibility to the owner, while others do it on their own. Either way you are not losing anything.
  • The consumer protection laws governing the leasing of commercial properties are less in number as well as stringency. It is easier to terminate a commercial lease.

Importance of location

The location of a property makes a huge difference in your prospective gains. For a property in a posh area, a tenant must be willing to pay a high rent. Residential properties close to schools and hospitals are understandably priced higher than those in remote areas. In case of commercial properties, location plays an even bigger role.

Home loan options

It is possible that you cannot manage the funds needed to buy a property at one go. But don’t despair even if you fall short by a significant amount. You can always avail home loans offered by banks. You can also contact non-banking financial companies (NBFCs) like Bajaj Finserv, which offers a maximum of Rs.3 crore as home loan.

Conclusion

It is completely up to you whether to invest in a residential or commercial property. Living in a buzzing city like Bangalore has its own charms. You can also rent out the newly bought property to get great returns on your investment. And the best thing is that for either of these options, you can choose modern housing projects like Valmark Orchard Square or Shriram Southern Crest.

gauravmittal

This article has been shared by Gaurav Mittal who is a blogger and working in the domain of insurance, Health insurance, technology, Digital marketing, home decor and many more.

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