The times when people were content with owning just the home they were living in are long gone. People are no longer satisfied with owning a single property and look at building assets for the future by investing further in realty. Actually, real estate market is one sector of the Indian economy that has been witnessing a boom for the past several years and the positive trend is expected to carry on in the coming years as well. Therefore, it is not too difficult to understand the growing interest in buying second homes.
However, real estate purchase involves a big monetary investment and is not something to be rushed into. Before you too join the bandwagon of second home owners, you must consider carefully the three important factors that should guide your purchase. These are
The purpose for which you are buying the second home
Be clear about the intended use of the second home; you can use the place as a vacation home or use it to earn extra income by renting it out. Accordingly, hunt for the right property in the most suitable location. You should even contemplate upon whether you would like to buy a built-up place or buy land and get the house constructed on it yourself.
The timing of the purchase
To get the most out of your investment, you should buy that second home at the right time. When it comes to the purchase decision of first-time home buyers, there are the significant factors of security and freedom offered by living in your own home that may outweigh the price considerations. However, no such sentiments are at play when you are planning to buy a second home. You must take care that you invest wisely and buy only when the market conditions suit you best. If need be, you shouldn’t mind waiting for some months for the prices to show a correction.
The financial arrangements and taxation implications
It is very important that your purchase does not put undue financial burden on you and cause stress in your daily life. Be sure that you have adequate finance for the second home. Make precise calculation of your savings and the amount you are willing to invest. If you plan to arrange a loan, consider its feasibility and whether you can afford the recurring installments. You should also anticipate the property tax and income tax (on the rentals you earn) you will have to pay on your second home.
Investing in a second home is certainly a wise decision, but only when you time and plan it right.
Harji Realtors is one of the leading real estate agents in the region of Chandigarh, Mohali and Kharar. For more information on great deals in 1 BHK Flat in Mohali and the best 2 BHK Flat in Mohali check out our website