A big dilemma in life “to be or not to be”... we all face this situation in life when we have to decide whether to buy or not to buy another property.
In India or I can say for Indians investment in property is one of the most important and strong steps for gaining returns. Lots of time and energy is required to make one successful investment decision.
After one successful investment, every person thinks to again jump into it with another property option. Also GST impact has made it possible for the buyers to locate the best properties in deducted prices. Have you ever thought that why people invest in real estate?
Here are the reasons:
1. Security of another investment, apart from the insurance, policies, gold etc
2. Anticipation of good returns because of the location and other lookouts
3. An additional gain of income tax benefits through tax privilege
4. As per the new law for real estate, an assessed is excused from paying income tax for principal amount repayments up to Rs 150,000 under section 80c. Interest paid on housing loans up to Rs 200,000 is also exempt from tax under section 24b.
5. Buying multiple houses and renting them out also doles rental income and also certain tax rebates are available to the assessee for such form of rental income subject to certain conditions.
Hence these are some of the reasons why people usually invest in realty and after one success they keep on going.
Owning a second home can be a good experience and if it is like homes Godrej Nest and Tata Primanti, it adds cherry on the top, where you are clear about the purpose of living and selecting the location and the property is again a must thing to check. It can be your weekend home or a second home where you can plan your holidays.
Make sure you invest in the place far from your current address and the place where you can spend quality time with your lovable. Second home is usually purchased with this view point only that you get a secured place where you can plan your weekends in fret free zone.
It has been usually observed that the first home is for self-use and the second should be for spending a good time at some different place. Also RERA 2017 has made the investment possible to easiest levels. It can also be used for the people to get extra income in terms of realty production only. But there are some of the factors which can decide the returns over investment.
Here are they:
1. Location! Location! Location! Ultimate advantages
2. Rental demand of that area
3. Developing infrastructure of the region and the presence of civic amenities
4. Maintenance charges and the overhead cost
5. Commuting options and the transport facilities.
Here are some of the key differences between the first home and the second home:
|Purpose||For daily living||Home to relax and rejuvenate|
|Location||Close to office and schools||Outside the city to make it as vacation home|
|Price||Usually high with all amenities||Depends on location|
|ROI prospect||Only capital appreciation||Rental plus capital income|
When the time of moderate interest rates is going on, some of the people are still considering rental property investment. I think it is the biggest chunk of income where rents get increased by time, resale value of the property escalates and income and tax benefits are there etc. this means you only have win-win situation in hands.
Yes you can buy the second home from investment view point but also from view point as second home.