A few decades back, the concept
of owning a second home was a dream that was nurtured only by the affluent
class. However, times have changed. Today young individuals with a higher level
of income are more enthusiastic about the idea of owning a second home. They
believe that a second home can not only meet their vacation needs but also
serve as an alternate source of income, when rented. This is also one of the
major reasons why developers stress more on the development of residential
projects than commercial properties in India. Treat it as a vacation home or a real-estate
investment; we Indians have always nurtured an emotional bond when it comes
to making residential investments. Though the reasons for real estate
investment can be different from person to person, there are a few factors one
should always consider when making home investments.
The first thing you need to do
before planning to buy a second home is to analyze your income. You should be
able to save a certain percentage of your income every month for EMI's. In
India, real estate forums are numerous and there are plenty other websites that
can help you determine the required budget. Irrespective of how you plan to use
your second home, you cannot retrieve the actual cost of investment within a
short period of time. Hence, you need to plan accordingly and make a choice
that suits you financially.
The location and the type of
house you choose, matters a lot. Be it a commercial property in Mumbai or a
residential one, if it is too remote or not in demand, then you are bound to
face issues while renting it out. An environment that has a good reputation,
nominal maintenance bills and is located in close proximity to public
transport, schools, hospitals, etc. offers higher return on investments. A villa
or a townhouse not only cost more than regular apartments, but also call for
additional maintenance charges which ought to be covered regularly.
Finding a reliable and
trust-worthy tenant is a tough task in itself, especially for your real estate
in Mumbai. To add to that, you will be obliged to handle additional
responsibilities like documentation, legal issues and other petty maintenance
issues, if you wish to rent your home. Such responsibilities will not only
consume your time but will also exhaust your initial profits. It is not
advisable to take loan from banks,
as they usually charge a higher rate of interest. Some banks even charge an
additional fee if you pay your EMI's before the period of completion. Hence
always check for alternative financial resources, before heading towards banks.
A visit to the local county
office will help estimate the required finance and they will provide you with
the information needed for managing financial resources for your new home.
Given a choice, go for 25% down payment as that leads to decreased interest
rates. Haste makes waste. So, think before you invest and always cross-check
the documents before you sign the agreement. With adequate research and
planning, rest assured to find a desired second home that fits in your budget.
About Author: – Ravi chauhan
writes on the behalf of Indian Real Estate News,
which is the best leading real estate portal providing genuine and accurate
information about the recent real estate projects Like Lotus Sports City.
1 comments
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