The difference between a villa and an apartment

The villa is an improved residence and a type of residence. It has a 70-year property right and can be settled. There are no purchase restrictions on apartments, but they cannot be settled in. In addition, public apartments generally only have 40-year property rights. Another difference is the area. This difference is obvious. The construction area of ??villas is definitely much higher than that of apartments.

What are the advantages of apartments?

1. No purchase restrictions or loan restrictions

In most cities, apartments have no purchase restrictions, compared to residential buildings where purchase restrictions are always available. , apartments greatly meet the needs of many housing investors, and apartments do not occupy the housing purchase quota. As for loans, the down payment for an apartment is at least 50% no matter which apartment it is.

2. Cheap price

In the same area and under similar conditions, the price of an apartment is usually only half that of a residence.

3. Both commercial and residential use

Many apartments are for both commercial and residential use. In addition to being a place of residence, you can also register a company, use it as an office, etc.

What are the disadvantages of apartments

1. Short land use period

The land use nature of commercial apartments is mostly "shopping malls", office buildings or hotels. The land use period of this type of commercial apartments only ranges from 40 to 50 years; while the use period of residential land is 70 years. Please note: The land use period is calculated from the time the developer acquires the land, not from the day you take possession of the building, so the actual use period you get is shorter.

2. Unable to settle down and have no degree

Buying a commercial apartment is not allowed to settle down. Although many commercial apartments are located in the city center and there are famous schools nearby, they cannot settle in and enroll in nearby schools.

3. Bank loan interest rates are high and the term is short

Although commercial apartments are not affected by residential purchase restrictions and loan restrictions, because they are commercial properties, they can only be approved for a maximum of five years. into a loan with a term of up to 10 years. Ordinary residences can obtain loans of up to 30 years and up to 70%.

Moreover, apartments cannot apply for provident fund mortgages with lower interest rates. At present, commercial apartment loan interest rates are generally 1.1 times to 1.3 times the benchmark interest rate, while residential loan interest rates are mostly 1.05 to 1.1 times higher. (There will be slight differences among cities/banks, but under the same conditions, the loan interest rate for apartments will definitely be higher).

4. Management fees and water and electricity bills are more expensive

The water, electricity and management fees of commercial apartments are much more expensive than those of Pusong residences. Open fire cooking is not allowed in many apartments, which is quite inconvenient for families. For example, the urban commercial water charging standard is 4.11 yuan/cubic meter, and the electricity charging standard is 0.9885 yuan/kWh, while the water and sewage treatment fee charging standard for residential properties is 2.22 yuan/cubic meter, and the electricity charging standard is only 0.61 yuan/kWh. Spend.

5. High taxes and fees make it difficult to resell.

The biggest drawback of commercial apartments is that the taxes and fees for buying and selling are very high, making it difficult to resell. According to the policy, land value-added tax is exempted for second-hand residential transactions after two years, but commercial apartment transactions are not exempt. The land value-added tax for apartments is generally levied on a four-level progressive tax rate based on the value-added amount of the land transferred, that is, a tax of 30%-60% is levied on the value-added part according to the value-added amount.

In addition, commercial apartments are also required to levy a business tax of 5.5% on the total property transaction price. The total taxes and fees for an apartment usually amount to 10%-14% of the total property transaction price. The total taxes and fees for ordinary second-hand residential transactions are usually only about 3%.