4 Reasons Why You Should Invest In A 1BHK Apartment

Shikha and Shashwat Sharma, a newly-wed couple, was planning to buy a 2BHK apartment in Noida's established sectors. However, with a limited budget, they could either buy a 1BHK apartment in the locality of their choice or buy a 2BHK in projects farther on the Yamuna Expressway. Now, the two had to either compromise on the size or on the location. The couple chose the former.  

As the cost of buying home in India is going up, 1BHK apartments are gaining traction among homebuyers as a viable option to invest in.

If you are also planning to invest in a 1BHK apartment, PropGuide gives you four reasons why this configuration can be an ideal choice:

Affordability

The smaller the unit the more affordable it is. A 1BHK apartment is an ideal starter home for a first-time homebuyer on a budget. Less capital involved would mean that the homebuyer will have to make a small downpayment and smaller equated monthly installments. Apart from this, 1BHK units come under the affordable housing segment, a segment which has was given an infrastructure status in the Budget 2017-18. This segment is now linked to subsidised home loans for the low-income group households when buying a smaller unit.

Demand-supply economy

One-BHK apartments are less popular among homebuyers when compared to 2BHK. The demand for these units is unusually less except in cities such as Mumbai, where property prices are already skyrocketing. A lower demand would mean an ample supply of these units, allowing a homebuyer to buy units of this configuration at a negotiated price. If you are lucky, you could also get additional deals such as club membership, waiving off of maintenance cost or Goods and Services Tax (GST) to dispose of their inventory. The government is likely to start levying tax on the developer for the inventory unsold for more than a year. This could be the best time for buying smaller units.

Lower utility cost

The Maharashtra government recently waived off property tax from houses sized under 500 sqft. For houses sized between 500 sqft and 700 sqft, the owner will get 60 per cent reduction in property tax. Along with lower property tax, utility and maintenance cost of small spaces will cost you lesser, too.

Rentable

Young couples, bachelors prefer smaller units because of affordable rents. For cities such as Bengaluru, Delhi, Gurgaon, Hyderabad, Mumbai and Noida, where a majority of the population is migrant, 1BHK apartments witness huge demand for rent. This makes such units worth an investment for investors looking to earn a monthly income.