Recently, the market for luxurious and mid-tier properties has been overcrowded and overpriced with expensive homes with different builders and developers specialising exclusively on luxury properties. There is still a need for affordable properties.
In addition, as an outcome of the government’s multiple financial initiatives and improvements to the policies supporting the affordable properties segment and the huge population influx and overcrowded housing that metropolitan areas are experiencing, homebuyers have begun to turn their attention to affordable housing.
The positive benefits associated with investing in real estate through affordable properties have prompted many who were hesitant to consider affordable housing as a real estate alternative to reconsider.
What follows are the top 5 benefits of buying affordable properties as a form of investment in real estate:
- Quicker capital appreciation
- Easy rental cash flow
- More support from the government
- The limited scope of risk with higher resale value
- Lower Maintenance Cost
Quicker capital appreciation
A higher value can be generated in less time with affordable properties than by luxurious ones. In a shorter period of time, homebuyers will see an increase in the sale price. Since most major cities are at their maximum size, homebuyers are also becoming increasingly interested in affordable options in the outskirts.
Affordable properties generates an increased rate of capital appreciation because of the straightforward approach of buying at less cost and making greater profits.
Affordable Properties exhibits less fluctuation in occupancy rates than luxury housing as not everyone can afford the former. Buyers are far more able to renovate or modify their affordable properties. This is due to the fact that built-in amenities in luxury homes frequently raise up the total price of the property.
Easy rental cash flow on affordable properties.
Generating regular rental income is one of the best aspects about investing in affordable properties. The bulk of luxury properties encounter periods where the public hires them out infrequently or makes fewer purchase.
On the other hand, because they have reasonable prices and provide just enough utilities to guarantee a hassle-free existence, affordable properties are in constant demand as rentals. For some types of tenants, such as the following, affordable housing is a good option: Students,Immigrants, Retired individuals, The elderly, Disabled persons, Single living working professionals.
A few homeowners of the property want to rent the unit for the first several months. This is an intelligent financial decision since you can always utilise the extra money for many of the things you gave up when you bought the property, It can also accommodate any unforeseen or unexpected.
More support from the government
The government, in tandem with the Reserve Bank of India, has carried out several types of affordable housing policy measures that encourage investment in this sector. Among them is the implementation of different incentive programs.These include the passing of various incentive schemes like the interest subsidy scheme under the Pradhan Mantri Awas Yojana (PMAY), the credit-linked subsidy scheme (CLSS), the Affordable Housing in Partnership (AHP) scheme, and the beneficiary-led construction or enhancement (BLC) scheme.
These initiatives have contributed to a notable rise in the amount of new affordable properties development for low-income populations. In addition, the RBI changed the house lending guidelines to promote the purchase of affordable homes. For example, the RBI permitted banks to lend up to 90% of the cost of a home for properties up to ₹30 lakhs.
The need for all of these reforms is contributing to the demand for affordable properties.
The limited scope of risk with higher resale value
Since purchasing an economical home requires fewer resources, the risk linked to affordable housing is lower. Furthermore, the government’s ongoing attempts to reduce real estate taxes, stamp duty, and loan interest rates help reduce risk and promote the purchase of affordable properties by reducing these expenses.
Affordable housing purchasers are also expecting an increased resale value because of increasing interest among buyers searching out affordable properties on the outskirts.
Currently, potential buyers recognize the advantages of low-cost accommodation and are aware that, even with modern amenities, an affordable home can save money and provide greater profits than a luxury property. This is because they frequently include additional benefits of improved access to the main locations and natural views.
Lower Maintenance Cost
Another factor that investors need to think about is the cost of property maintenance. As a result of the increased supplies of residents, affordable housing properties require periodic maintenance and repairs. For investors, it can be quite simple to keep properties in excellent condition while keeping upkeep costs within reasonable limits.
This implies that maintenance costs are also kept to the lowest possible level. The amount of upkeep can be justified without having a major adverse financial effect when you evaluate the current facilities that you utilise in the luxury premises. Before purchasing a budget home, a sensible buyer would, of course, account for the cost of maintenance in his budget.
Conclusion
Once you understand the benefits that affordable housing may provide, the myths surrounding it fade. For potential customers, affordable housing could be an excellent option for their primary home or an investment.
In the end, if you buy an affordable home from a trustworthy builder or developer, you can save money and end up with an excellent property. And if you are one of the homebuyers looking for affordable homes then we can help you out to find one, For Further queries please feel free to contact KMA Properties or call us at +91 964 583 5212, You can also mail at admin@kmaproperties.in.
In light of the current bull run in the Indian real estate market, purchasing a home may prove to be one of your best life choices. The greatest way to protect yourself from inflation is to invest in real estate. Additionally, it’s an investment that gives you the freedom to live an extravagant life, protect your future, and leave a legacy for generations to come.
