Bangalore is one of the fastest-growing cities in India, with a population of over 13 million people. As India’s main IT hub, Bangalore has become the promised land for jobs and opportunities, attracting NRIs and IT professionals from the whole country. This rapid growth is driving up the demand for housing, both for rent and for purchase. As a result, property prices in Bangalore are expected to continue to rise in the coming years.
The average property price in Bangalore has increased by 10% year-on-year over the past five years. The rental market in Bangalore is becoming increasingly competitive, with demand outstripping supply. This is driving up rental prices.
In this blog, we will look at why it is often a better choice to buy a flat in Bangalore than to rent one.
Undeniable Advantages of Owning a Flat in Bangalore Over Renting
1. Long-term Investment
A study by Knight Frank found that Bangalore was the top city in India for long-term real estate investment. Investing in real estate is like planting a seed for your financial future. Property values in Bangalore have historically appreciated, and there's a good chance that your property's value will increase over the years. This will provide financial security and a substantial return on investment (ROI) when you decide to sell it in the future.
2. Stability and Freedom
When you buy a property, you gain stability and freedom that renting cannot provide. Getting a 2 BHK flat for rent in Bangalore means you are subject to the terms and conditions of your landlord, which include clauses around monthly charges and eviction. On the other hand, when you own a property, you have control over your living space. Enjoy the sense of stability that comes with homeownership.
3. No Rent Escalation
In 2022, the average rent for a 2BHK flat in Bangalore increased by 15%. In Bangalore's competitive rental market, landlords often raise the rent each year due to the high demand for housing and the limited supply. When you buy a 2 BHK flat in Bangalore with a fixed mortgage, your monthly payments remain stable, providing financial predictability and security.
4. Tax Benefits
Buying a property in Bangalore offers various tax benefits. You can claim deductions on the interest you pay on your home loan under Section 24(b) of the Income Tax Act. Additionally, you can avail of deductions on the principal repayment under Section 80C. These tax benefits can significantly reduce your overall tax liability, making homeownership more financially advantageous. Women investing in property also enjoy additional tax benefits. These include lower stamp duty and registration charges. Women get between a 1-3% rebate on Stamp Duty and registration charges on average, compared to male buyers.
5. Building Equity
When you buy a property, you are building equity. Equity is the difference between the value of your property and the amount of money you still owe on your mortgage. As the value of your property increases, so does your equity. This means that you can borrow against your equity to invest in other things, such as starting a business or buying another property. Owning flats in properties like New Haven by Tata Value Homes, which can attract excellent rental income can greatly increase your equity.
6. Potential Rental Income
Buying a property in Bangalore can offer you the opportunity to generate rental income. If you have additional space in your property, you can rent it out to tenants and earn a steady stream of income. This can help offset your own housing expenses and provide an additional source of income. The city is seeing a drastic increase in migration from the salaried class to the IT sector. This migration is driving up rental income in Bengaluru. Rental income from high-end and luxury properties like The Promont by Tata Housing can be even more lucrative.
Summing Up!
In conclusion, while renting may seem like the easier and more immediate choice, flats for sale in Bangalore offer numerous long-term advantages. It provides financial stability, tax benefits, potential rental income, and a sense of ownership that renting cannot match.
With the city's growing real estate market and potential for capital appreciation, investing in property in Bangalore can be a wise and profitable decision for your future. So, if you're considering flats for rent in Bangalore, it might be worth exploring the option of buying a flat in Bangalore instead.
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