“I am looking to invest in Bangalore with a budget of Rs 80 Lakh. Should I go for a two-bedroom apartment or a three-bedroom house?” A great question by Raghav Ram, one of our followers on Quora. We asked our in-house expert to answer this.
“Well, Raghav has two options. He can either can go for a premium 3-bedroom apartment or put his money in two units of 2BHK each. I would suggest buying two units of 2BHKs as they have high demand,” explains Ashutosh Kumar, Lead, Home Buying Advisory Services.
He further explains, “Like Raghav, many investors get confused about the right option to invest in. But we have to understand that there is no one-best option in real estate that works for everyone.”
In one of our recent surveys, we asked prospective homebuyers about the top three things they look for while buying a property. In order of preference, we got budget, location, and developer. The survey clearly revealed that focusing on the right size of the home, often, gets pushed to the back burner.
Before we delve further and try to find the best option for Raghav, let us understand the pros and cons of investing in 1 and 3BHK apartments.
1BHKs Apartment/House or studio apartments
- In terms of cost, 1BHKs are comparatively affordable.
- These compact units are also easy to maintain.
- In some cases, 1BHKs are a good alternative to paying high rentals.
- Lastly, when compared to a 3 or 4BHK, the loading factor per unit is relatively low. This means that you get more space within your unit.
Now, let’s look at some disadvantages. Due to space crunch, these smaller units are ideal mostly for bachelors or newly married couples. Also, there is a huge demand-supply gap in most metros.
3BHKs Apartment/House
- Ample space within the home. No prizes for guessing that! 3BHK homes are one of the best options for large families due to space availability. A few come with a servant room, which makes it ideal for families with working partners.
About the disadvantages, 3BHKs are relatively difficult to rent out or sell.
- Generally, offer a lower return on investment compared to 2BHKs.
- Rent differential between 2 and 3BHK is usually low. For instance, a 3BHK may cost 40-50% more than a 2BHK, but rent differential is hardly 20-25%.
- High maintenance charges.
Considering the above factors, 2BHK units evolve as a good option. Also, it is ideal for first-time homebuyers as these provide comfortable space for couples and nuclear families. Some other reasons are:
- Ample availability
- Easy to maintain
- Good value appreciation
- Easy to sell or rent
If you have any plans to expand your family, opting for a bigger apartment will be the right move for you. Also, contemplate whether you have frequent guests staying over. For those, you would require an additional room to avoid any discomfort.
However, if you are buying a property purely for an investment purpose like Mr Ragahv, then opting for a 2BHK apartment is a wiser option to garner maximum returns.
Nice blog
They explained very clearly in the above article about which flat to buy .