Are you planning to buy a property in Chennai? Are you wondering whether it makes sense to invest in Chennai? Being one of the largest economic and cultural centers in India, the real estate market in Chennai has been consistently flourishing since the very inception of various housing projects. Purchasing a property in Chennai can be inordinately beneficial in terms of long-term savings, tax benefits, investment purposes, and much more.
There’s a very high demand for PG accommodation in Chennai as the metropolitan attracts multitudes of students and working-class people from all over India. One can generate quick returns with his/her property in Chennai provided that the investment is made wisely. In this article, we will list and discuss the major reasons why it makes sense to buy a property in Chennai so as to assist you in your pursuit of investing.
Reasons For Buying Property In Chennai
When it comes to investing in a property in a remarkable city like Chennai, it is very important to make certain that the buyer is totally convinced before the final purchase is made. Let us take a look at the major reasons why it is beneficial to buy a property in Chennai so that you can be assured.
1. Lucrative Investment
It is a well-known fact that the value of the real estate in big metropolitans like Chennai goes up with the passage of time. Property rates are influenced by various factors such as location, amenities, and so on. Now that more and more people are buying properties in Chennai, the land is getting scarcer, thereby causing prices to skyrocket.
On these accounts, the money that you invest in a property in today’s time is very much likely to increase in the near future. Real estate is a highly safe investment unlike several other options available in the market. The best part about a real estate investment is that it hardly shows any depreciation in its value.
2. Fixed Source Of Monthly Income
Owing to a large number of students and working professionals in Chennai, paying guest accommodation has turned into a profitable earning opportunity for a lot of individuals. Without a doubt, PG accommodation has the potential to generate great returns for investors. Thus, you can convert your property to a paying guest in Chennai and lease it out for earning a fixed monthly rental income.
3. Great Asset For Resale
Making an investment in real estate in Chennai can be a great asset for resale. Being the owner, you can sell off your property in case of financial difficulties in the future or when your property’s market value is notably high. Nonetheless, it must be taken into consideration that the same can’t be done if you rent a property, where you only get limited rights.
Homeownership is undoubtedly better but it requires relatively more arrangements than renting a property. Although renting is much easier, there are almost no returns. Last but not the least, you only receive a security deposit (which is also subject to certain terms) upon vacating the rented property.
4. Assured Stability In Personal Property
Assured stability in personal property is one of the major benefits of making an investment in Chennai. The thing with renting a space is that you have to abide by the property’s owner’s will. Keeping everything else aside, there is always this possibility that you may be asked to vacate the rented property without prior notice and you would still have to leave.
Besides that, the procedure for lease renewal on a rent agreement is no piece of cake in the least bit. As a matter of fact, the entire process requires a great deal of hard work and time concurrently.
But when you invest your hard-won money in a property in Chennai, you would get to enjoy assured stability which means that you can reside on your property the way you want. In other words, you can stay in your property without having to worry about interference or forthcoming evacuation risk.
5. Reduced Burden Of Taxes
The best benefit of owning property in Chennai is that you are not burdened by taxes at the end of each year. In other words, you will get to enjoy a reduction in taxes annually. It is so because your home loan interest and property tax will get deducted from your total gross income, in that way decreasing the amount of your salary that is taxable.
As you can see, from these annual deductions in tax, the Indian government indirectly subsidizes your purchase make an investment in a property in Chennai. Having said that, you will realize with time that buying a property in Chennai is essentially a lot cheaper than taking one on rent.
6. Equity Benefits
In simple words, equity is an asset which forms a considerable part of your total net worth. Moreover, it refers to the difference between your outstanding loan payment and the annual increase in your property’s market value. When you take a property on rent, the monthly rental you pay gives you the right to reside in the property and more.
On the other hand, purchasing instead of renting earns you equity each year while the property’s value keeps going up. On average, the value of properties in India increases by four to six percent annually. Having said that, owning a property in Chennai is indubitably better than renting as it comes with a multitude of various other financial benefits.
There is no doubt that purchasing a property in Chennai can be inordinately advantageous for owners as the investment can generate lucrative returns in a very short span of time. In addition to investment purposes, properties in Chennai can be great for end-use (occupancy) as well provided that they are utilized in the right manner. Now that we have discussed all the major reasons, when are you planning to buy a property in Chennai?