What’s the Difference: Buying vs. Investing in Residential Property?
Are you looking forward to improving your standard of living? Everyone probably knows that buying a new home with modern features opens the way to the lifestyle of our dreams. We tend to choose a home built by a reputable builder in a better location that meets today’s conveniences. Therefore, when it comes to the advent 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 properties and enjoy the benefits of it?
With the purchase of an apartment, the ownership of the new house is secured. However, investing in residential property generates passive income. Whether you are investing in a residential apartment in Kolkata or elsewhere, choose a property that will potentially guarantee you a high rate of return.
You should check the growth quotient of the region where you plan to invest in a residential property. If the region lacks signs of growth or promise, this will become a long-term financial burden. On the contrary, a good investment, such as investing in residential flats in Kolkata in various regions (such as Madhyamgram, Serampore, Tollygunge, Rajarhat, EM Bypass, etc.) will generate income from mortgage payments, tax costs, repairs, etc. through tenants. It could become an essential channel for building wealth if you come up with the perfect wealth plan. your planning is going well.
Here’s what you need to know about buying and investing in a residential property.
Buying and investing: understanding the concept
Residential properties comprised of a defined area of land consisting of apartments or a separate house built for individuals or families to inhabit. These should not be used for commercial or industrial purposes. These spaces are essentially reserved for occupational purposes and involve residential use for a long period of time.
On the other hand, an investment property can be a long or short term investment. If we consider the short-term duration, the concept of ‘turning around’ a house appears. In this case, the property is bought and remodeled or renovated and sold for a higher price.
Income can also be generated by owning the property and renting it to others, or by selling the property at a time when the value has appreciated. For example, if you buy a house in Kolkata close to the airport, good schools and universities, the property price will automatically be high.
Apart from that, these are the characteristics that differentiate the two:
Buying a residential property
Invest in a residential property
Choose the right property
It provides better standards of living along with meeting the requirements of family members.
Possible challenges: lengthy bank payments, poor connectivity, poor location advantages, etc.
Generate passive income
It adapts to the growth of a region which, in turn, increases the value of a property for income from rental or property sales.
It can be a short or long term investment
The landlord enjoys ownership of the property
Possible challenges: Uneven income stream, property value could fall, liability for repair and maintenance costs, etc.
We can explain this by taking a metropolitan city as an example. For example, if you think of Kolkata, you will come across a large number of residential projects. Therefore, whether you are buying a home in Kolkata or investing in property, it is essential to do a full scan of the region you are specifically targeting. Whether in the north or south of Kolkata, it is always necessary to know which areas will give you the best advantages to meet your requirements.
Make all the arrangements, do your research, and treat yourself to the best living space. –