Residential-commercial property why you should invest in it?
Mixed-use properties or residential commercial property are a growing trend in real estate. A good example is residential-cum-commercial properties, which combine living and business spaces in one location. These properties are perfect for city life and offer practical options for both homeowners and business owners. Let’s explore what they are, their benefits, challenges, and why they’re a good choice.
What is a Residential cum Commercial Property?
A Residential Commercial Property combines living and business spaces within a single property. Typically, it features commercial spaces like shops, offices, or cafés on the ground floor with residential units on the upper floors. Some developments even include entire buildings or communities designed for mixed use, subject to local zoning laws.
These properties are especially popular in urban areas, where they provide both convenience and practical advantages.
Why Every Business Owners and Entrepreneurs Should Invest in Mixed-Use Properties
- Who wouldn't love earning both rental income and stability in one investment?
- You can earn rental income from the commercial space on the ground floor while living in or renting out the residential units on the upper floors.
- Mixed-use properties attract both businesses and residents due to their convenience and visibility.
- Residential Commercial properties are attractive to businesses that want visibility and convenience and to residents who appreciate proximity to commercial areas.
- They reduce risks by combining residential and commercial components, ensuring more stability.
- By having both residential and commercial components, you reduce risks associated with relying on a single income source.
- Mixed-use properties in prime locations often experience better appreciation over time.
- Residential Commercial properties in well-zoned areas tend to appreciate faster due to their utility and flexibility.
- For entrepreneurs, these properties offer the convenience of managing a business downstairs while living upstairs.
- If you’re an entrepreneur, you can use the commercial space for your business while living upstairs, saving on commute and additional costs.
How it would be benefited for restate investors
Mixed-use properties provide a dual-income opportunity, as investors can lease out both the commercial and residential spaces. For instance, a property with a grocery store on the ground floor and a family renting the upper unit ensures diversified income streams.
Few things to keep in mind if you’re planning for buy
- Zoning Regulations:
- Check local laws to ensure the property is legally approved for mixed-use. Non-compliance can lead to hefty fines or restrictions.
- Maintenance Costs:
- Managing both residential and commercial aspects can require extra upkeep and investment in infrastructure.
- Noise and Activity Levels:
- Businesses on the property might lead to noise or increased foot traffic, which could disturb residents.
Where Can You Find These Properties?
Residential-cum-commercial properties are typically found in:
- Urban High Streets: Ideal for shopfronts with apartments above
- Integrated Townships: Modern developments with built-in retail, office, and residential spaces
- Traditional Market Areas: Older neighborhoods where shop owners live above their businesses
So, Are you planning to buy residential commercial property? Want to whats is the process of registering?
Step 1: Check Zoning and Permissions
- First, verify that the property's zoning permits both commercial and residential use. This can be confirmed through your local municipal authority or the HMDA (Hyderabad Metropolitan Development Authority).
- Where to Check: HMDA website or municipal office.
- What It Confirms: Whether the land is designated for residential, commercial, or mixed-use.
- Make sure the property has obtained all required approvals for both types of usage.
Step 2: Drafting the Sale Deed
- The Sale Deed is the key document during registration. It must clearly specify:
- The ground floor will be used for commercial purposes (e.g., shops or offices).
- The upper floors will be used for residential purposes (e.g., apartments or individual units).
- Include the property's mixed-use designation to prevent future legal and tax complications.
Step 3: Registering the Property
When visiting the Sub-Registrar Office (SRO) for property registration, follow these steps:
- Categorization:
- The property can be registered either as a Mixed-Use Property or under its primary use. For example:
- Register under "Commercial" if the ground floor is the primary focus.
- Register under "Residential" if the upper floors are the primary focus.
- Stamp Duty and Registration Fees:
- The fees are calculated based on the property's market value, with different rates for commercial and residential portions. Commercial spaces generally incur higher fees.
- Documents Required:
- Sale Deed (drafted and signed)
- Encumbrance Certificate (to show the property is free from legal disputes)
- PAN card and ID proofs of buyer and seller
- Address proof
- Passport-sized photographs
Conclusion
Residential-cum-commercial properties strike a perfect balance between practicality and profitability. They're ideal for those seeking a multifunctional space or a high-return investment. However, it's important to do your homework—check zoning rules, assess maintenance costs, and understand market trends before diving in. With careful planning, these properties can be a game-changer for both homeowners and investors.
