A residential area is a land used in which housing predominates, as opposed to industrial and commercial property.
Housing may vary significantly between, and through, residential areas. These include housing multi-residential propertyl, or mobile house. zoning for residential use may permit some services or work opportunities or may totally exclude business and industry. It may permit high density land use or only permit low density uses.
In certain residential areas, especially rural, large tracts of land may have no services whatever, such that residents seeking services must use a motor vehicle or other transportation, so the need for transportation has resulted in land development following existing or planned transport infrastructure such as rail and road. Development patterns may be regulated by restrivect convienant contained in the deed to the properties in the development and may also result from or be reinforced by zoning. Restrictive covenants are not easily changed when the agreement of all property owners (many of whom may not live in the area) is required. The area so restricted may be large or small.
Criticisms of residential developments may include the following:
- They do not mesh well with the greater community. Some are isolated, with only one entrance, or otherwise connected with the rest of the community in few ways.
- Being commuter town, they serve no more purpose for the greater community than other specialized settlements do and thus require residents to go to the greater community for commercial or other purposes, whereas mixed-use develpoment provide for commerce and other activities, so residents need not go as often to the greater community.
why is residential property investment a great choice?
It takes a lot of skills and knowledge of the market to invest smartly in real estate space. When it comes to investing in real estate, most people prefer residential property investment because it carries less risk and offers profitable rental returns.
If you’re curious about the other benefits that investing in residential properties has in store for you, read on to know the top reasons to invest in one today.
Higher and Consistent Rental Returns
One of the best sources of income for real estate investors is rental income and price appreciation of the residential properties. In addition, the market value of commercial properties may vary as per the market condition.
Today, residential properties come with all sorts of amenities, so it becomes easy to find tenants and have a consistent rental income.
Residential Properties Are Affordable
Investing in residential properties is still within reach of customers because of its affordable pricing and availability. Unlike commercial properties, these properties come at a reasonable price because of the high demand for housing in the country.
The home loan interest rate for residential properties is at an all-time low. Besides, RBI has recently announced a reduction in REPO rate, which make it easier for customers to avail home loan for these properties.