Where I Should Invest In Bangalore Flats vs House

Apartment / Flats

General Features:- Apartments in Bangalore have fast become the most supplied property type in the cities of India. Their popularity is credited to but not limited to immediate looks, modern amenities, and better security. In addition, issues related to water and electricity supply and maintenance are usually taken care of by the developer. Thus, if you are buying a property for end-use, apartments can prove to be the best option unless you want the freedom to design your own home. Since these units are readily available, you have a lot of options to choose from, depending on your budget, location, and other preferences.

Scope of earning/income opportunities

● If you do not plan to take over the flat immediately, you can keep it on rent and withdraw the EMI burden, if you have taken a home loan.

● The other benefits of investing in an apartment over a plot or house is its high resale value and wide buyer base. Since the demand for these units is usually the highest among all property types, it is relatively easy to find a buyer for your apartment as compared to an individual house or residential plot.

● Although, the rate of appreciation of an apartment or flat may be lower than that of a plot. This is basically the price of the land that appreciates. Also, if you take into account wear and tear over a while, the structure may see some degree of depreciation.

Tax implications:-

When you take a home loan to buy an apartment, you are entitled to certain tax benefits. If the property is for self-use, you are entitled to a tax deduction of up to Rs 2 lakh per financial year on the interest amount. In addition, a deduction of Rs 1 lakh is applicable on the principal amount paid.

However, one must remember that if you are planning to let your purchased property out on rent, the rent earned will be treated as income and will be taxable.

House/Villa:-

General Features:- Independent homes in Bangalore or villas in Bangalore are preferred by those who want the privacy of an independent unit but also want to avoid the hassle of building a home. A major drawback for these units is the lack of security and backup of electricity and water, usually offered by society's campuses. Although, The developers and investors are offering these units in gated communities with individual and shared features.

Scope of earning/income opportunities:-

● When it comes to independent homes in Bangalore or villas, the capital appreciation may not be as high as a plot of land or an apartment. This is very large because of the high initial capital involved and limited demand compared to apartments.

● The monthly rent for such units is usually higher than for apartments. However, due to the associated high price tag, it is difficult to find tenants.

Tax implications:-

The tax implications are the same as for apartments.

Flat vs. House: Conveniences

If you are buying an apartment in Bangalore in a housing society, you may get access to all modern amenities including security, surveillance, parking space, power back-up, fire protection mechanism, etc. but all these facilities are almost an additional one. come at a cost. 20%-25% of the cost of the property. There are such facilities that are not available and additional effort may be required to set up these services for independent house in Bangalore, These may include installing a power backup system for each room, hiring security personnel or installing cameras, arranging and water storage tanks, etc. If your house is situated in a gated colony, the Residents Welfare Association (RWA) is likely to arrange the security system.

Nowadays, developers are offering mixed residential projects, which include flats and plotted developments, where amenities and facilities are available to all the owners at a small additional cost. Having the best of both worlds, such plotted options are a great option.