Almost every person in India dreams of having a beautiful home away from the city crowds. After the coronavirus-induced lockdown, the need for a second home has increased more than ever. Thus, it is motivating everyone to invest in holiday homes. In this new normal, the most common buyers of such houses are young people. Due to travel costs and other factors, the younger generation prefers to own a vacation home. Moreover, the concept is rapidly gaining momentum among other selected buyers – mainly HNIs, NRIs, and upper-middle-class individuals.
Although the idea of buying a vacation home in a prime location in India is quite tempting, you should always be careful before investing your hard-earned money in a property. Before booking a holiday villa for yourself, you must explore a few things. Otherwise, you could get yourself into big trouble because vacation homes are an expensive property. Here are some important things you should consider before buy holiday home:
1. Financial Goals
When you plan to invest in a second home or vacation home, make sure your financial goals are appropriately aligned to prevent any negative impact on your savings. Before choosing an asset, it is important to assess the estimated return on investment (ROI) so that you can plan your financial portfolio as well as earn a stable additional income. Also, do not spend more than 30% of your income as an initial investment in property.
2. Choose A Property In The Vicinity
Although there may be many attractive vacation home options away from your home, invest in a property where you can reach in a 4-5 hour drive. That way, you can easily keep track of your residence and also plan a sudden weekend vacation to spend quality time with your loved ones. Additionally, buying a vacation home in an accessible location with excellent connectivity can prove prudent.
3. Make It A Source Of Income
Vacation houses may be used to earn rental money in addition to serving as a status symbol for luxury. If you buy a second home at a famous tourist destination in India, you can earn a good extra income by renting it out. Destinations like Rishikesh, Mussoorie, Shimla, Nainital, Goa and other popular tourist destinations are best for buying vacation homes.
4. Take Help From Experts
In the modern era you can find everything online. Even when it comes to Real Estate, most buyers prefer to search and finalize properties only through mobile. But buying a real estate property through a mobile phone or laptop is much more different than the actual process. In fact, you may need outside help from real estate agents to understand the neighborhood and tax implications for securing a deal. Therefore, working with a specialist is recommended when buying property in India.
5. Know The Taxes Involved
Don’t stay in the misconception that since it is a vacation home, you may also get a tax exemption. Second homes have various tax implications. Since stamp duty and property registration fees vary in different states, it is advisable to take a reasonable consideration in advance of how much you will spend on taxes when buying a home for the holidays.
Conclusion
Buying a holiday home in India can be a rewarding experience, but it’s essential to carefully consider factors like location, accessibility, legal aspects, amenities, maintenance, and security before making a decision. By doing thorough research and due diligence, you can ensure that your holiday home investment brings you joy and relaxation for years to come.
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