Hi Hivers,
These days many people consider buying a second home for holiday, leisure, retirement or purely investment. Though any real estate transaction is quite an expensive affair and its not a piece of cake to decide on making such investments. While owning a personal home is considered to be a big milestone in one's life, the aspirations, personal needs, future prospects push you towards having a second home.
Here are a few reasons to buy a second home.
Investment: This could be top reason among all class of buyers. Real estate is a booming industry and with growing population the demand is ever increasing. Cities are growing bigger and new projects keep coming. A second home can prove to be a great investment if chosen carefully. Having said that real estates investment might require a long tenure to give decent returns, so one has to be patient to get returns from such investment.
Remote Work: Thinking about remote work for weeks/months was nowhere an option earlier but now it has become the reality for many. Many working professionals consider having a second home in scenic locations from where they can continue doing their job. Its a win-win for all, if your job allows you to work remotely what's better than working from a place of your choice/comfort. A second home serves its full purpose in such case and you can enjoy living the life which many people thought of as a retirement option.
Vacation Home: Many city dwellers starve for vacation even if its for 1-2 days only. Having a vacation home where you can go on weekends or on any other opportunity is a great luxury to have.
Rental Income: Second homes can be a source of rental income. In a city you can rent out such property on a regular basis or if you choose to buy a second home on a tourist place it can be used as homestay. Appreciation on property along with some regular rental income is a dual benefit. If done with planning and thoughtfully this can turnout to be a significant income source .
Retirement Home: Many people wants to leave the hustle bustle of cities and settle in hills, or outskirt of cities to leave a peaceful life after retirement. The pollutions, expenses of city life and fast pace of cities are all well to leave off in the retirement age and spend time with nature and your loved ones.
Tax Benefits: Along all the possible reasons, one can avail some tax benefits on interest paid on principal amount for such investments.
Whatever the reason you finds, drives you to own a second home. One should plan carefully the financial viabilities of such investments. Taking huge loans and being indebted for years is surely not a good idea to own a second home.
There may be additional cost of other than the purchase price for owning a second home. Such as maintenance, property tax, renovation etc. Such additional cost might make it less viable depending on other factors. Carefully thought of your needs, availability, financial viability and future prospects of the decision.
Though its a growing trend, owning a second home or planning for one is very personal. What's right for one may be wrong for other. Don't make your decision depending on what's the trend. Evaluate your situation and make highly personalize decision with realistic expectations to fit your requirements.
Thanks for reading all through it. have a great day.
Keep investing, keep growing.
