Top 5 Reasons You Should Consider Buying A Second Home
By magnoliaAdmin | Dec 10, 2020
This blog article aims to provide insights on the below aspects related to second home:
- Advantages of buying a second home
- How to make the most out of investment in a second home?
- The biggest justification for buying a vacation home?
There are advantages to investing in any kind of land or property, the main ones being steady income, long-term financial security, tax benefits, mortgage payments, price appreciation over the years.
What is even more significant is that land is always a good investment to buy, as it can also serve as a perfect backup for liquid cash if necessary in the long term.
WHAT ARE THE OTHER REASONS WHY YOU SHOULD INVEST IN A SECOND HOME?
- A Major Investment
Real estate is an opportunity that will appreciate and give you higher returns than any other asset class over the years. So, investing in a second home, along with investing in fixed deposits, mutual funds or gold will earn you rich returns in the long run.
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- Serves as a home for retirement
Many people in the city have this dream of buying a house for retirement. It’s a good idea to invest in a second home, particularly in your native town. Even if you don’t intend to live there, it can provide you with a source of income for rent.
- Payment advantages
If you have invested in another house, you are likely to have multiple tax advantages on the same property. The payment of interest on your home loan would help save your taxes.
There are no limitations on the number of properties that a person can own and there are no limits on the same lines that a person can use a loan facility at the same time. So if he chooses to purchase a second house, there are many tax advantages that an individual can use.
- Holiday Home Rentals
You can turn it into a holiday home, and receive rental income from it if you intend to invest in a property in an off-beat area, away from the city.
One of the most sought after locations to invest in a second home, especially Kolkata, is Rajarhat. The reasons for these are a nice and cool environment, well-developed infrastructure, and suitable budget-friendly property deals.
Also, numerous government projects are in place to build roads and roadways for smooth transportation, making it easily accessible. So it is a great idea to invest in this place for a second home.
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- Diversified Portfolio
Hedging of risk is an important parameter that every investor keeps in mind. Fixed Deposit, Shares, Mutual Funds, and Property options should be wisely mixed for having a diversified portfolio.
GOVERNMENT BOOSTERS FOR REAL ESTATE
As the government is pressing for different infrastructure projects, the time is just right.
- The government has recently announced a program of Rs. 25,000 crore for the affordable and middle-income housing sector in a bid to provide relief for home buyers. It will ensure that unfinished tasks and on-time delivery to the purchasers are completed.
- Since the government is making different efforts to provide the much-needed boost, several top real estate companies are also making the best use of it.
- As the idea of second homes catches up rapidly, at the same time, the companies have enticing EMI options and numerous plans for the investor, buyer, and agent.
So, if you ever think of investing in a second house, the time is just right.
HOW TO MAKE THE MOST OF AN INVESTMENT IN A SECOND HOME?
Being a proud owner of a second home is many people’s dream. With huge prospects for real estate development, land deals, growing disposable incomes, the notion of a second home is quickly catching up.
However, there is more to only getting the urge and the availability of money to buy a second house.
Consider the following points if you are assured of buying a second home:
- What is the intention of your second home purchase?
- To have an understanding of the real estate industry, speak with good and well-established real estate companies/consultants.
- Investing in a region that is a developing location, rather than an established locality, is always pleasant. This is because, as price inflation will be greater, it will give you double the returns. A top priority should be the location, unit size, and growth of infrastructure.
- What’s the biggest justification for buying a vacation home? Investment or profits for rent?
Earlier, before the idea of RERA/HIRA and GST, people used to invest only from an investment point of view in another land. But the investment scene has changed over the years, with RERA/HIRA and GST coming into the picture. It can produce income in the form of rentals, with the capital value of second homes growing gradually.
This has a triple advantage of:
- It will take care of expenses for repairs.
- Secondly, it will add up to one’s savings as well.
- It also helps the consumer to have a diversified and strong portfolio of investments.
Investing in a second home offers steady income, long-term financial security, tax benefits, mortgage payments, price appreciation over the years. Second-home can provide a source of income for rent. It can also serve as a home for retirement. One of the most sought after locations to invest in a second home, especially Kolkata, is Rajarhat. The reasons for these are a nice and cool environment, well-developed infrastructure, and suitable budget-friendly property deals. The payment of interest on your home loan would help save your taxes.
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