Why 2 BHK is the Best Real Estate Investment

As every homeowner, you would certainly like to invest in an apartment that has long-term benefit and low maintenance. However, in the every fluctuating real estate market, it is common to have fear or to be more precise confusion in which unit of the apartment should be invested. When it comes to buying an apartment, the homeowner has different unit options, from 1 BHK and 2 BHK to 3 BHK and Duplex.

The price of each unit depends on the area, developer and the location. Furthermore, it also depends on the size of the family. A family of 5 members having low income can adjust in the 1 BHK apartment. However, the same member of the family with high income would prefer for 2 BHK or 3 BHK apartment. Every unit has its own advantages and disadvantages. Before you invest in the respective unit, you need to do a good research on all terms. However, of all the units available in real estate, the 2 BHK apartment is considered as the best investment. Before we learn the benefit of 2 BHK, let us first check why 1 BHK and 3 BHK aren't the best options:

• 1 BHK Apartment: The reason why 1 BHK isn't the best option is that it is usually purchased by lower income group of people. The value of the 1 bhk also isn't high, irrespective of the location. Moreover, small builders are the one who deals with building this unit. 1 BHK is normally bought by end users. The rate of appreciation of 1 BHK lags behind other unit sizes therefore investors don’t prefer 1 BHK for Real Estate Investment.

• 3 BHK Apartment: Compared to 1 BHK and 2 BHK, this apartment units having higher value and costs more than 70%. It is usually purchased by higher income family who wants large space and in a luxury way. A general 3 BHK apartment will be 1000-1200 sqft and will also have higher rental value. A 3 BHK may cost 50% more than 2 BHK but rent differential is hardly 20%. As the price of the 3 BHK apartment is high, it wouldn't be affordable for those who are looking for 1 BHK or 2 BHK flat. Moreover, the 3 BHK flat will find hard to rent on due to higher rental value.

Now let us check why 2 BHK is the ideal investment apartment:

• Has Target Audience: Be it the nuclear family or small family, 2 BHK is considered as the ideal apartment to invest on. Moreover, those who are looking for rented apartments, 2 BHK is highly considered.

• Quite Affordable: Though the price of the 2 BHK flat is quite high compared to 1BHK, but is lower than 3 BHK. 2 BHK is very easy to rent or sell due to its affordability. Top developers offer 2 BHK flats under intelligent price, which the medium income family can afford to buy.  Moreover, the price of 2 BHK depends on the location. If the apartment is in a prime location, the price may be higher compared to outskirts of the city or less developed city.

• Higher Selling Value: Unlike 1 BHK, 2 BHK flats have higher selling value, especially if the apartment is located in prime location. For if the buyer has purchased for Rs 1.20 cr, the selling value can around Rs 1.30-35 cr, depending on the real estate price, amenities and how old the project is. The two units of 2 BHK will have much higher capital appreciation compared to one unit of 3 BHK. It is purely based on demand & supply scenario. Moreover rent from two units of 2 BHK will always be much higher compared to 1 unit of 3 BHK.

• Easy Rental: Imagine you have purchased 3 BHK flat and suddenly have to leave the city; you will certainly face the situation of no rental purchase. No small or nuclear family members would go for a 3 BHK flat on rent. When it comes to 2 BHK, people look forward to buying it for rental purpose.

• Medium Maintenance Cost: The maintenance cost of 2 BHK is comparatively lower than 3 BHK is higher than a 1 BHK apartment. The maintenance is defined as per the size of the apartment and amenities offered. So investing in 2 BHK for lower maintenance is certainly a good idea.

Verdict: 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.