Make a well-considered choice when purchasing your second home.

Make a well-considered choice when purchasing your second home.

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March 21, 2024
Blog

Considering purchasing a second home? Our experts have compiled some essential tips for you to contemplate before finalizing your decision.

With rising disposal incomes and the millennial now becoming the primary home-buyers, the demand for second homes is on the rise. One of the recent surveys conducted by Savills India found that almost 70 per cent of respondents want to invest in a second home priced at its two core or less. The survey also pointed out that 57 to 70 per cent of the respondents want to buy a second home within the next one year.

Elaborating on the most important things to check while buying a second home, our expert’s advices:

TAX BENEFITS FOR SECOND-TIME HOMEOWNERS

You can avail a tax benefit of up to Rupees two lakh under Section 80C of the Income Tax Act if you buy a second home on a home loan. While deductions under this section are separate in each case on the principal amount, every second homeowner can enjoy tax benefits on the interest component. Also, when you treat your second home as self-occupied. It does not attract any taxability.

Location

Select a location depending on the purpose of the vacation house. In case you want to set it aside for resale, pick a location with good pricing. Infrastructure, and amenities. However, if you want it for personal use, you could pick a nice spot surrounded by nature. You may also prefer it to be closer to your usual residence to allow easy access:

Utilizing it for generating income

Holiday homes can be a potential source of income. If maintained well along with proper marketing, it can fetch good returns in the form of weekend rentals:

Get a trustworthy workforce

Hire experts if you intend to keep a permanent workforce to manage and take care of your house. Your maintenance personnel will serve as your eyes and ears if you live in another city. Hire reputable and trusted workers who can cater to your and your guest’s needs whenever you or they visit.

Check your finances

Just like your primary home, maintaining a second home is a continuous process. You will have to spend on the property’s exterior and interior, security, and regular upkeep. This implies that you will need to set aside some money each month to take care of the expenses;

Value at sale

A vacation home’s resale value will be influenced by its location. future expectations. proximity to any touristy spots, and how well it suits the prevailing tastes and preferences:

Connectivity

It is essential to check transport connectivity—road. Railway, and other transport facilities—in order to ensure seamless commute;