A second home is a property that is bought in addition to a person’s primary place of residence. Recently, the trend of buying second homes has received traction across India, as more and more people are seeking second home project in Mumbai. In fact, surveys reveal that the Indian second-home property market is witnessing a hike of 10-12% per year.
The event of buying a second home may have different implications for each individual. For some, it can act as a weekend getaway spot—which they otherwise rent out to generate some cash flow, while others may buy it with the hopes of gaining returns in the future.
This article provides a glance at the benefits of investing in a second house.
It acts as the perfect getaway spot
Since the pandemic, there has been a rise in demand for second homes—located within a short distance from the city. Multiple people are in search of second homes near Mumbai. This is because people want to have a place to retreat to in the possibility of more outbreaks. Moreover, with working from home gaining normalcy, there’s a greater demand for a quieter and more peaceful environment, away from the hustle and bustle of city life. Detaching from the large population of cities also enables people to stay safer and have a reduced risk of contracting the virus. Most of these second homes are situated in localities with more green space all around—this lack of metropolitan facilities makes it easier for people to venture out since a lesser crowd makes social distancing more manageable.
It can be a smart investment
Purchasing a second home can be a great investment. In fact, the majority of the people buying second homes do so with the purpose of investing. The current reduction of interest rates on Home loans to 8.6% per annum has also led to a rise in demand for these types of homes. Moreover, the government has recently decided to limit interest deduction for properties at Rs 2 lakhs per annum. . People who decide to rent out their second homes in times when they’re not occupying will also be exempted from having to pay wealth tax. This, however, is only in the event of an individual renting out their house for at least 300 days in a year. At any cost, second homes provide great opportunities to monetize, and if there are people looking to create various sources of income, investing in a second house can be the perfect way to do so.
It can be a good backup for the future
It is always recommended to look ahead into the future while making big decisions. A second home doesn’t just provide immediate benefits, but it can also be a great place to retreat to after retirement. Most people wish to live a quiet life after retirement and there’s no better place to do so than in a luxury home in the outskirts of the city. Buying a second house can be a big decision and one must weigh the pros and cons before making up their mind. However, if an individual has the available means, this decision can reap innumerable benefits.