Investing in any kind of land or real estate has its benefits, the major ones are- steady income, long term financial security, tax benefits, mortgage payments, price appreciation over the years.
What is even more important that land is always a good investment to buy as in the long run it can also serve as a perfect backup for liquid cash if required.
What are the other reasons for investing in a second home?
An Important investment
Real estate is an investment that will appreciate over the years, and earn you better returns than any other asset class. So along with investing in fixed deposits, mutual funds or gold, investing in a second home will earn you rich returns in the long run.
Serves as a retirement home
Most of the city people have this dream of owning a retirement home. So investing in a second home, especially in your native town is a good idea. Even if you do not plan to settle down there, it can be a source of income, if you plan to give it on rent.
Tax Benefits
In case you have invested in another property, chances are that you will have numerous tax benefits on the same. The interest payment on your home loan will help save your tax.
There are no restrictions on the number of properties a person can own and on the same lines, there are no restrictions a person can avail of a loan facility at the same time.
So there are several tax benefits that a person can use once he decides to buy a second home.
Rents on Vacation home
If you plan to invest in a property in an off-beat location, away from the city, you can convert it into a holiday home, and earn rental income from the same.
The Konkan coastal belt is one of the most sought after locations to invest in a second home, especially Dapoli. The reasons for these are pleasant and cool climate, well-developed infrastructure, and attractive property land deals suitable in your budget.
Further, there are various government programs for the development of the infrastructure and roadways for smooth transportation, making it easily reachable. So investing in this place for a second home is a perfect idea.
Government schemes for real estate
The time is just right as the Government is pushing for various infrastructure projects. We take a look in detail:-
In a move to provide relief for home buyers, the Government has announced a plan of Rs. 25,000 crore, in the affordable and the middle-income housing sector. This will ensure the completion of unfinished projects and on-time delivery to the buyers.
Source- https://www.zeebiz.com/india/news-homebuyers-to-benefit-check-out-modi-20s-new-rs-25000-crore-aif-sbi-and-lic-roped-in-too-113895
So the time is just right if you are ever thinking of investing in a second home.
Boost for Real Estate firms
Since the Government is taking various efforts in providing the much-required boost, many top real estate firms are also making the best use of the same.
As the concept of second homes is fast catching up, the firms are providing attractive EMI options and various plans for the investor, buyer and the agent at the same time. Now, the next question that arises in our mind is,
How to make the most of a second home investment?
Being a proud owner of a second home is the dream of many. With tremendous real estate growth prospects, land deals, rising disposable incomes, the concept of a second home is fast catching up.
However, there is more to just having the desire to owning a second home and the availability of money. If you are sure of buying a second home consider the following points:-
- What is my purpose of buying a second home?
- Talk with good and well-established real estate firms/consultants to have an understanding of the real estate market.
- It is always good to invest in an area that is a developing locality, rather a developed locality.
- This is because it will give you double the returns as price appreciation will be more.
- Location, Unit size, and infrastructure development should be a top priority.
What should be the main reason for buying a holiday home?
Investment or Rental income?
Earlier, before the concept of RERA and GST, people used to invest in another property only with an investment point of view. Most of the time they used to buy the property which would lie vacant for the most part of the year.
Eventually, the returns came when the property prices increased. But over the years, with RERA and GST coming in the picture, the investment scene has changed.
With the capital value of second homes increasing gradually, it can generate income in the form of rentals.
This has a double advantage
- It will take care of maintenance costs.
- Secondly, it will also add up to one’s savings.
It also provides the buyer to have a diversified and a strong investment portfolio.
However how to identify the increasing returns on the investments made?
As mentioned above the location of the property plays a very important role in maximizing the returns. And the location should be such that the price appreciation should be double.
- Now, in metro cities price appreciation is less due to congestion and very few benefits. Investing in a property which is fast developing rather than where development is already saturated makes sense, as it is a helpful option in the long run.
- But off-beat locations are an extremely good option as the price increase is at least 10 times higher.
- Some of these locations are Dapoli and the nearby Konkan regions.
- Not only this location is perfect for investment purposes, but the nearby infrastructure is also been developed rapidly by the Government. (Mumbai-Goa National Highway, Rail development, New Panvel Airport developed by 2020).
- Top real estate developers are also providing attractive investment dealings so that the buyer can make the most of the second home.
To achieve your dream of buying a second home, you have a trustworthy partner in firms like Viaa Vision to help you at every step of investment. A rich legacy of satisfied customers, Viaa Vision ensures you will have smooth transactions in all your dealings, with top real estate experts to guide you.
Conclusion
Real estate gives you high returns on investments so it’s a great idea to invest in a second home where you can enjoy your holidays as well as you will get an extra income day by day.
Author Bio:
Abhijeet Kothare is working in the Real estate industry for 10 years. He is a passionate blogger. He writes wonderful & unique blogs. His writing skills are very impressive.
Email:[email protected]
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