Property investors often find themselves in a dilemma between rental or commercial properties. Let’s look at some of the advantages of each:
Advantages of rental income from residential:
- Rental income stream: Property has the capability of providing regular and the stable rental stream over the years. The increase in rental income will take place over a period which will boost yields. If you hold a property for a long time, it can serve as a regular income stream, apart from your salary and other sources of income.
- Tax benefits: People who take a home loan for a self-occupied property will get a tax deduction for the principal aid as a tax deduction. There is also an additional deduction for interest payments. The EMI payments towards the housing loan will also give momentous tax savings that can be used for your expenses or additional investments.
- An advantage for yourself: You will be able to convert an illiquid asset into an income stream, though after death it is going to be sold, you will also not have to face embarrassment selling your house or moving to a location which is expensive.
Advantages of renting commercial property:
- Additional choices: Renting is the interesting method for businesses that are looking for a commercial property. Thus, you will find more premises to search through when looking for rentals. More choice gives the best chance of finding the right property for your business needs.
- A large amount of flexibility: Renting gives more versatility to adapt to any changes. Renting means you can move nearer to the suppliers or rivals if required. It is far easier to close the rental deal then to sell premises or find new tenants.
Buying a commercial property in Panvel
Panvel is now emerging as a desirable property destination. The city is attracting many buyers and investors to buy property in Panvel . The real estate developers are coming up with many new townships and one of them is Hiranandani Fortune City. It is a global township project in Panvel spread across 350 acres of land offering studio, 1, 1,5, 2, 3 BHK flats in Panvel. Since Hiranandani Communities are pioneers of developing integrated townships, they have also designed a project named Hiranandani Parks. This project is an integrated and self-sustained township spanning over 400 acres offering luxury apartments at Oragadam - Chennai .
So, the rental returns from a commercial property are higher compared to a residential property. It also depends on factors such as right selection of property, location, and prevailing market conditions.