Why Should You Invest In A Second Home In India?

A Second Home is always a good investment option that will provide you with a great ROI in a city or suburban area. You can use the home for your residential purpose or to relax on a weekend. Check this article to know how you can benefit from the second home and where to buy it. 

Second Home Properties

• A vacation place: It is seen that people generally buy a second home so that they can spend their weekend in a calm and soothing place. It generally consists of a resort or a farmhouse.  
• Good Investment: Buying a second home always acts as a good option for investment because it increases your tangible asset section and creates a passive income. 
• Tax benefit: You will get a tax deduction on the rental income as well as on the home loan. 

Things To Keep In Mind Before Buying A Second Home

There are a few things that are required to keep in mind before deciding to buy a second home in India. 

• Select a strong reason to invest in a second home: It is important to analyze whether you plan to invest in the new property or use it for self-occupation. This evaluation will also include how this investment will get fit in a particular portfolio. You need to understand that the return on this investment will be less initially, but gradually the return will increase.  
• Analyze your budget: The budget is required to be analyzed so that there is no financial issue in the future. There has to be a well-calculated budget for a second home. The process of buying a second home is similar to buying your first home as it will also include mortgage payments, maintenance costs, taxes and etc.    
• Select your preferred location and the type of house: Location is one of the most crucial factors when deciding for buying a second house. Generally, people prefer to buy a farmhouse in a sub-urban location that is away from the city hassle. You can have different motivations to buy a second home like you want to invest in it to stay after your retirement. 
• Return on investment: You should analyze some major factors like the potential return on investment from the second home. It is noticed that a property that is surrounded by commercial hubs generally provides a better ROI compared to the ones which are located away from these places. Hence, if you invest in a higher return location, then there will be longer higher returns.   
• Tax benefits: Analyse the tax benefits you will receive for a second home. If you are earning rental income, then you can claim a tax deduction showing that the income is spent on maintenance. Gradually the second house will turn into an extra investment that can be used to fulfill your financial goals. 

How To Buy A Second Home For Investment

If you have already decided and analyzed your budget to invest in a second home then here are the steps which you can follow to buy a second home.

Step 1: Mortgage pre-approval: You need to eliminate any financial obstacles before applying for a mortgage. You will also get an idea of how much finance you can provide and how much you need to take as a mortgage. 

Step 2: Real estate agent: Local real estate agents are great to deal with when you are buying a second home because they understand the local market and will also provide financial advice to buy the property. 

Step 3: Dream home: After finding the location, now you need to select your dream home. You need to consider the space, and the amenities of the project while selecting. After you have selected the home, your agent will now make an offer and negotiate with counter offers. 

Step 4: Close the deal: When you and the seller mutually accept any offer then you can start with the closing process. You need to buy homeowners insurance, schedule an inspection, complete any documentation required and close the deal by paying the closing amount. 

Properties In Lonavala

Lonavala is one of the best places to spend your weekend and invest your time in relaxation. Due to its soothing weather and hills, this place is mostly favored by people to buy their second home. 

Lonavala provides seamless connectivity to Mumbai-Pune Express and Mumbai Chennai Highway. Pune International Airport is 69 km away and Mumbai International Airport is 90 km away. 

There are many beautiful locations in Lonavala that provide ready-to-move houses as well as plots to build your dream house. These locations are 

• Varsoli
• Kunegaon
• Waghranwadi
• Bhangarwadi
• Old Khandala
• Valvan and many more

You can enjoy the following benefits in the Lonavala location which are: 

• You can avail plots at lower and moderate rates 
• The property price would likely appreciation in future
• You can sell the plot later and get a good ROI
• The demand for residential plots is rising in Lonavala 

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