When looking to invest in any real estate project, the options available to you may make your decision to invest seem more challenging than it is. This effect compounds further in a city like Gurugram, where affordable real estate and exclusive, more luxurious real estate projects are present abundantly. One of the prime questions/doubts that this abundance of choice does raise is choosing to invest in either budget properties or more luxurious ones. This blog post aims to provide you with more clarity on the matter by stating reasons you’d want to invest in more budget and affordable properties.
1. Higher Scope
Real Estate projects that emerge as ‘budget’ properties target the middle, lower-middle-income bracket of buyers. These projects are adequate for any prospective renters that belong to that specific income category. And in a country like India, the population of the mentioned income bracket, especially in urban centers, is quite significant instead of other higher brackets. An immense population as such allows for a better scope for investing in budget properties.
2. Modest Investment Requirement
Another fairly obvious reason to invest in budget properties is that they require a significantly less investment as their counterpart does. It allows the yield investment ratio to be favorable while also decreasing the risk involved in such a purchase for any prospective investor.
3. Maintenance Costs
Besides just being exorbitantly priced right off the get-go, Luxury homes also come along with a long list of maintenance costs. These elaborate maintenance costs result from more sophisticated amenities and features that require regular and better maintenance. However, with affordable properties, the maintenance cost wouldn’t be as much, all the while providing the most rudimentary of features that will suffice.
Budget apartments are incredibly reliable due to a lesser amount of risk in the investing process. They’ve established themselves as perfect investment opportunities for anyone looking to gain monetarily from it. According to the economic fraternity, budget real estate investments are often better alternatives than gold, stocks or any other conventional investment opportunity. This established presence makes affordable housing projects more reliable for anyone looking to invest.
These reasons aim to give you clarity over what objectively the better alternative is. However, specific situations demand different steps to ensure the real estate property you’re investing in makes the most sense in that particular context, even though investing in budget properties may be objectively better.