Holiday Homes: The Income Generating Investment
India has always seen an inclination towards real estate as the most preferred source of investment. From renting out flats to purchasing lands for commercial rent-outs, real estate investment has always been seen as a security blanket and for social impetus. However, over time this trend has seen some shift as to what sort of real estate investments can be opted for. It has been observed that the city dwellers are now seen making investments in holiday homes, thanks to the ever-busy city life and a boom in the tourism sector. Indians are now seen traveling more than ever and with the pandemic at home, most people are now seen retiring to properties that have good amenities and are less crowded to endure a safe and enjoyable vacation.
Thus, holiday homes have emerged as the hottest real estate investments in recent times. These holiday homes are generally a few hours’ drive from the actual homes and are mostly located in picturesque locations amidst hills or on beaches. These are second homes, which mean you would not be staying in 90% of the time, and during those times the property can be rented out, thus generating rental income and capital gains. However, before committing to it, you should know what exactly it means to own a holiday home.
Here are some good reasons why you should invest in a holiday home:
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Good Investment Choice :
The pandemic has made people retire in their abodes and with the never-ending lockdowns, a holiday home investment has become necessary more than ever. People are now looking for places where they can have a holiday yet maintain safety and holiday homes just fits the bill. As more and more people look for properties offering a wholesome and safe vacation, generating rental income through this investment is a golden opportunity. With the interest rates also following a downward trend, it is indeed the best time to be investing in a holiday home.
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Source of Income :
Holiday homes need not be just a luxury symbol. They can also earn money for you, when not being used by you and friends/family, your holiday home can be rented out. The income arising from such rentals could be used to offset maintenance costs. Also, it can be a great investment if it is bought in locations where the tourists’ influx is much such as Karjat near Mumbai or Manali near Delhi. If your vacation homes boast of some wonderful amenities, then not just the tourists but it can serve the purpose to the locals too.
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Use your holiday home and off-set the costs :
The biggest motivator for investing in a holiday home is that you can combine owning your dream holiday home with running a successful business and offsetting the cost of your holidays. It is highly recommended that one chooses a place where they would like to holiday themselves as a location for holiday home investment.
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Return on Investment :
A good location can earn you tremendous holiday home rental income more than a standard buy-to-let property. The short duration of tourist stays can generate heavy cash flows as you can charge a premium on rentals, especially during peak seasons. With the strategic location, the value of the property is sure to see worthy appreciation, a good combination of capital gains and rental incomes.
Holiday homes are a break from the mundane; the escape you want from what life throws at you daily. It only justifies you to invest in a home that truly liberates you from that stress. Ultimately there are plenty of upsides and it’s a wise decision to invest in a holiday home. With beautiful countryside, enjoy the magic of nature by either investing in holiday homes near Mumbai or a beach house in Goa. This is the right time to make a rewarding decision and enjoy the benefits in return.
