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Why do not homeowners leave their homes vacant_
  • August 28, 2020
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Why do not homeowners leave their homes vacant?

The drawbacks of leaving the estate empty 2 bhk flat for rent in kharghar are greater than any clear advantages

Residential properties are in short supply in urban India and yet many houses remain empty. 2 bhk flat on rent in kharghar according to the 2011 census, 11 million of urban India’s 110 million residential units were vacant; that’s around 10 per cent of the total urban housing stock. Delhi’s National Capital Territory (NCT) alone had more than 500,000 empty homes, according to the Census.

Why do not homeowners leave their homes vacant_

Similarly, in Maharashtra more than 3.7 million residential homes were vacant, followed by over 2.4 million units each in Uttar Pradesh and Gujarat.

Why do so many residential units remain empty in urban India, 2 bhk flats on rent in kharghar when so many people are ready to rent houses?

“If the average national rent yield is 2-3 percent, 2 bhk rent in kharghar landlords’ renting of their property is not an enticing proposition,” says Sudhir Pai, CEO, Magicbricks. In addition, poor rental laws and lawsuit risk cause homeowners to keep their homes empty rather than renting them out.

“In India there is a distinct lack of appropriate legislation specifying the rights and responsibilities of tenants and house owners alike. Consequently, 2 bhk room rent in kharghar conflicts between tenants and owners of houses are very common. Non-payment or late rent payment is common and, worse, many tenants are also accused of losing their property, or the occupant may harm the property, “says Mani Rangarajan, Group COO, Housing.com, Makaan.com and PropTiger.com.

But despite low rents and risk, 2 bhk flat in kharghar for rent keeping the property vacant doesn’t make sense for a homeowner. “The inconvenience of keeping the property empty is more than any obvious advantages it provides,” says Amit Kumar Agarwal, CEO and co-founder of NoBroker.com.

No return on equity

Previously, property prices would grow every day, and low rental yields had barely troubled homeowners. In addition, 2 bhk flat rent in kharghar most owners will leave the property empty so they could sell it off easily if and when they get a decent price, without thinking about the job of keeping the property vacated.

But property prices have either remained stable or experienced a correction across the country in the last five years or so. 2 bhk room on rent in kharghar at the very least, property prices are expected to stagnate for next few years.

In such a situation it is easier to rent it out and receive some returns instead of leaving your property empty and having its value decrease due to time correction.

Why do not homeowners leave their homes vacant

Expenses payable

And if a property stays vacant, 2 bhk flats rent in kharghar near station the owner can have to pay some costs, such as property tax, fixed service link charges and others. If the property happens to be in a gated housing area, so there are the maintenance fees that one has to pay for area.

If a property is leased out, the homeowner must pay most of the costs, except property tax. “Keeping in mind that property ownership comes at a cost, keeping properties empty or locked makes no sense,” Pai says.

Charge on notional leases

The government is imposing tax on national rent in order to prevent taxpayers from keeping their homes empty and also to make properties affordable for tenants. 2 bhk flats in kharghar for rent notional rent is the rent you ‘re supposed to have paid even though you’re not currently paying any rent on a house. “They ‘re a double whammy, in a way.

The owner of the vacant property doesn’t receive anything out of it, but has to pay tax, “Rangarajan says.

But from F.Y. 2019-20, the notional rent tax comes into play only if you own more than two properties. “If an person holds two assets for self-consumption purposes, 2 bhk flat on rent in kharghar sector 20 then the gross annual value shall be taken as zero as provided for in Section 23 of the 1961 Income Tax Act,” says Sumit Batra, a tax expert. But if you have more than two properties, “in such a situation, even if the other properties (beyond two properties) are empty, it takes into account the estimated rent from other properties to determine the gross rental income,” adds Batra.

Land is squandered

“A vacant property is more suffering from wear and tear compared to an inhabited house,” Rangarajan says. Agarwal repeats the thought: “A property that is completely usable and livable improves property life and upkeep.”

Also, vacant properties are vulnerable to harm such as burning, fogging, electrical damage, infestation of mold and pests, etc. It is safer to have tenants in your house to manage routine repairs and to take urgent action.

More vulnerable to burglary, squatting, trespassing and intrusion

Vacant properties face risks including robbery, 2 bhk flat rent in kharghar navi mumbai vandalism and other crimes of this type. Copper cabling, costly interior or sanitary fittings, electrical equipment, window and door iron / metal, or even main gates may be stolen.

Independent cottages in remote areas often continue to attract intruders committing criminal and illegal acts when they try quiet places in the night dark. These homes tend to get vandalized and stolen too. Vacant buildings are more vulnerable to becoming intruders or squatters.

The bottom line is that when renting it out, whether or not there are lucrative returns on a house, there are several points in favor of leasing it out and also maintaining its protection. It is in the owner’s best interest not to leave the estate vacant for a long period of time.

 

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