Deciding on whether to invest in affordable housing or luxury property may be a difficult task to do. It becomes more challenging when you are a first-time buyer. Taking the help of property listing sites in India would be a smart way to work out a property without wasting much time, money, and energy. In this informative, we will discuss different factors influencing the buying decision.
What Is Affordable Housing?
Affordable housing is a pocket-friendly property option available for buyers looking for low-cost homes. Investing in a low-budget property may have some advantages and challenges simultaneously.
What Is Luxury Housing?
Luxury homes are the premium-class properties that are available in the market for higher costs. These high-end homes serve luxury amenities and features to the investor with a higher rental income.
Who Can Invest In Both Luxury & Affordable Housing?
- The one who is willing to purchase a property.
- Real estate investors
- The one who is seeking additional rental income from properties.
- One who wishes to invest in a luxurious lifestyle.
Affordable Vs. Luxury Housing
It is important to understand how affordable housing is different from luxurious ones, and when to invest in either of the properties. You can visit the famous online property portal to work on the best matching real estate product for your needs.
1. Location Specification
Luxury homes are developed and located at a premium location. Mostly, premium investors seek properties that are high in demand and higher in cost. On the other hand, affordable housing projects are run by the government, and developers accommodate lower or medium-income groups.
2. Maintenance Cost
Affordable homes require low maintenance and it involves low relative cost. However, luxury houses demand higher maintenance costs. It also requires more time to repair and renovate the property.
3. Rental Income
Affordable homes offer regular rental income to laymen. On the contrary, luxury homes provide higher rental income to investors and property owners.
4. Return On Investment (ROI)
If you are seeking a property for investment purposes only, then luxurious homes can offer unexpectedly higher returns on investment than affordable homes. However, a low-cost property in the demanded location can be a good option.
5. Required Initial Investment
Luxury housing demands higher initial investment. You need to manage additional funds for relative costs too. Whereas, affordable homes need low initial investment.
6. Risk Level
Investment in affordable housing deals with low-risk levels, and the purchase of luxury homes involves higher risk against your investment.
7. Target Market
Affordable houses target the lower income groups to offer them homes with basic amenities under their budget. However, luxury homes target the higher income groups to offer them premium quality features and advantages.
Conclusion
Both affordable and luxury homes are in demand these days due to a hike in land prices in India. The purpose of investing in either of the properties may differ, but it may still have scope for profitable trade. You can engage a professional realtor to find you the best property options for your needs.
