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by admin on August 13, 2021

What is a good investment option 1 BHK or 2 BHK

People are always confused whether to buy a 1BHK or 2BHK home flat in Mumbai. In city like Mumbai, purchasing a home of your own is the biggest financial investment. It is a difficult decision of your life. In the last few years, there has been a slight fall in the Mumbai property market. Instead of choosing rental apartments in Mumbai, you have a good opportunity of buying your own house. When you decide to invest the money, you should be clear about the the size of the flat and length of the stay in that place.

Buying a 2 BHK unit is an ideal choice for today’s nuclear family as it is affordable as well as enough for 3 to 4 members in a family. But buying at a premium location can be expensive, so the buyers move to some far off places to buy a budget flat. The buyers also have another option that is they can opt for a 1 BHK unit at their preferred location that is perhaps priced at a comparatively lower range. However, the choice completely depends on the buyers’ requirement and preferences.

So, here are some reasons on why buying a 1 BHK unit could be a good option.

Affordable: needless to say that 1 BHK unit is much more affordable than a 2 BHK unit. For a first time, a home buyer who is tight on budget, a 1 BHK flat is an ideal option to buy. Affordable means less price range, smaller EMI amount and a smaller down payment amount. Moreover, 1 BHK units come under the affordable housing segment which is linked to subsidized home loan scheme.

Less additional cost: smaller the unit size, lesser would be the additional costs associated with the unit. As compared to a 2 BHK unit, 1 BHK units have lesser maintenance and utility charges as well as attracts lesser property tax.

Demand and supply: the current market trend shows that 1 BHK units are less preferred as compared to 2 BHK units by the home buyers. The demand for 1 BHK units is on a much lower side than the other specifications. The lower demand implies that the buyers preferring 1 BHK have ample of options to buy from. This also means that the buyers can get their choice of the unit at a much reasonable and negotiated price. The builder could also offer some additional offers such as waiving off of club membership, maintenance costs or Goods and Services Tax (GST) in order to sell off their inventory.

Good investment option: If you look from investment angle with affordable budget buying a 1 BHK is a good investment option, if the unit is put on for rent. Usually, students, bachelors, young couples prefer 1 BHK flats due to pocket friendly rentals, easy to maintain and also low maintenance costs. Majority of migrants as well prefer 1 BHK apartments due to all the mentioned reasons. In term of rentals 1 BHK flats are high on demand and therefore 1 BHK units are a desirable option for people with constrained budget to earn a regular monthly income.

Should you buy 1 BHK or 2 BHK

It’s always tempting to choose the more affordable option, but when it comes to buying property this may not be the best strategy to use.

Here are a few reasons you should try and stretch your budget and buy a 2 BHK as opposed to a 1 BHK.

Better Returns– Today, you may be buying a flat for yourself but tomorrow you may want to sell it. There aren’t too many buyers for 1 BHKs. Usually this is because people in our country start families around the time they can afford to buy property. 2BHKs on the other hand are ideal sized units that are always in demand. They also have a higher value of appreciation. A 2BHK is a wiser investment choice.

Convenient Size – A 2BHK is a comfortable for both individuals and nuclear families. Maybe you live on your own and feel you don’t need the extra space. But it wouldn’t hurt to have it. You could use that space as a study room for yourself. At least that way when someone does need to stay over, the option is available. Also planning for a family in future becomes easier.

Value For Money: In most cases a 1 BHK may be cheaper but adding just a little more to your budget, could give you a lot more! 1 BHK can be more expensive in terms of square-foot cost. It is a bit like buying something in wholesale as opposed to individual units.

Documentation & Paperwork: The legal formalities associated with buying a 1BHK or a 2BHK are almost the same. If you are going to go through the process, it makes sense to get a 2BHK initially itself, rather than going through the same process twice. Also the taxation policy is not much different either.

More Space: This is the most obvious advantage. What people don’t realise is that many flats offer the 0.5 concept. This means that the apartment comes with a smaller room, usually referred to as a study room.

Conclusion: 2 BHK apartments are ideal investment options considered by nuclear family and medium-sized families. Thinking practically and for the long-term purpose, investing in 2 BHK is certainly the best thing you can do for better ROI.

Conclusion: 2 BHK apartments are ideal investment options considered by nuclear family and medium-sized families. Thinking practically and for the long-term purpose, investing in 2 BHK is certainly the best thing you can do for better ROI.


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