Why Owning a Vacation Home is the Best Real Estate Investment Plan
For centuries, real estate investments have been considered a symbol of pride, status, and a vital source of investment. No wonder real estate investments be it commercial or otherwise have been the most preferred choice of investment for any age group. While many real estate investments are still confined to residential and commercial properties a trend of second home investment is seen soon picking up. The process of generating second income through second home investments isn’t a new concept in India and many families from the affluent class have made their choice of second home investment. However, the onset of the pandemic has made people opt for a second home investment yet again. Villas, bungalows, and resort homes in a distant location away from city life have seen a spike in investments in recent times.
Second-home investments are usually made in secluded locations such as Bhimashankar, Karjat, and the like. These places offer serenity and calm and serve as the best way to retire from chaotic city life. Real estate dealers have observed a certain spike in queries for a second home near Mumbai. While there might be a lot of real estate investments, generating second income through second home investments yield a good number of benefits. Here are some:
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Earn Rental Income :
Second home investments make it very convenient to earn rental income. If you have chosen a vacation spot for your second home, you get every chance to rent out your property to the tourists visiting the place. Also, because you are the owner of your property, this way you can have a relaxing vacation with your family and friends conveniently.
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Appreciation on Property :
Trends show that investing in real estate properties provides better returns than fixed deposits or equities. It is a much safer form of investment with the certainty of appreciation of your property value. And, if your vacation home is located in a prime location it only serves as a cherry on the cake.
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Tax Deductions :
If you have availed a loan for your vacation home investment, you are guaranteed a tax deduction of up to Rs 2 lakhs (if the property is not rented out) towards the interest paid and a deduction up to the amount in case the property is rented out. Either way, this helps in saving tax and also building an asset simultaneously.
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Retirement Home :
Second homes seem to be the most viable retirement plan. With your investment, you are automatically liable to passive income generated out of the property and also the appreciated value can work wonders for you. Second homes are your concrete support in the old age of your life.
Generating income through the second home is a trend that suddenly picked up but this time it is here to stay. Such investments are not just financial investments but an investment towards a happy and blissful life.
