Five Advantages of Owning an Apartment in Bangalore

Bangalore, the Silicon Valley of India, is the most sought after destination for the country’s job seekers. Every year, tens of thousands of individuals migrate to the city in search of a fulfilling career. As a result, the demand for residential apartments in Bangalore is also increasing to accommodate this huge work force. While the new residents usually choose to stay at a rented house, individuals with a stable job and higher income prefer to buy an apartment than renting one.

Both owning and renting a home has its own advantages and disadvantages. However, buying an apartment makes better sense since the monthly EMIs are utilised into one’s own property, ensuring return on investment in the future. Whereas, the money spent on rents go to someone else, which one will never be able to retrieve. Moreover, owning a home gives immense pride, sense of security and emotional contentment to the owner. It is such an asset, which always appreciates with time.

Let us study some of the benefits of owning an apartment in Bangalore:

Freedom: A home owner is the boss of his residence. He doesn’t require anybody’s permission for making any kind of alteration at his apartment. He enjoys greater privacy. Moreover, he can always go for that exotic piece of furniture or delicate crockery set without worrying that it will get damaged during home shifting, a normal phenomenon in case of a rented apartment.

Stability: Home owners usually have fixed EMIs. Hence it becomes easier for them to plan out their other future expenses – be it children’s education fee, daughter’s wedding expenses or parents’ treatment cost. Renters are generally clueless about how much they are going to pay few years down the line. As for example, home rent has increased by 7% to a whopping 23% in certain areas in Bangalore during last couple of years. Localities like Indiranagar, HAL, Old Airport Road, Marathahalli, Bellandur and Outer Ring Road have seen maximum hike. Therefore, allotting a definite amount towards rent and planning other long term expenses around it, is not always possible for renters.

Appreciation: Land prices in Bangalore have been on a steady rise since early 2000s, resulting in appreciation in housing prices every year; sometimes manifolds. According to experts, over a ten year period, real estate has seen the highest scale of appreciation in comparison to any other class of investment. Hence buying an apartment in this city is a wise decision from an investment point of view too.

Tax benefits: EMIs and property tax obligations are a homeowner’s best friend during income tax filing in India, since both of these offer tangible tax benefit. The current housing loan interest deduction limit is extended up to INR 2,00,000 every year. However, the extent of the tax benefit one is eligible for is dependent on the income bracket one falls into and whether one has already occupied the house.