The decision to buy a second home is a testimony that your first experience was a favourable one. With the overwhelming demand for investments in the housing sector in the backdrop of the pandemic, people are looking to put their funds in immovable assets for better returns on their investments. Your purpose of investment in buying a second home- be it a retirement retreat, a vacation home, or as a source of rental income, would not only promise a steady income but would also render long-term financial security to you. According to real estate experts, in India, the demand for buying a second home is growing at a pace of 10%-12% per year; and as per statistics, out of the total homes sold in India, 5%-8% account for vacation homes. With interest rates on the downtrend for most of the other investment options like bonds, fixed deposits and the uncertainty of market investments, there has been a considerable switch with people keen on investing in real estate properties as it is safer and fetches better ROI in the long run over all other investments. However, even though you have had a past experience investing in a property, and have gone through the home-buying process in the past, you still need to consider the following points before finalising the deal to buy a second home.
4 Guidelines to Consider Before Buying a Second Home
Buying a second home needs proper planning and execution too. So as to ensure that your investment does not turn out to be a bad one, here are 4 guidelines you should follow:
Choose the Right Home Loan Option
A loan for a second home demands bigger and more stringent down payments, between 10% to 20%, as compared to your primary property loan. Even though this would depend upon your income, credit history and many other factors, you need to choose a lender that asks for a minimum down payment, and the one that does not impose too many stipulations.
Also, it is advisable to take out a loan for a second home in a joint name as it would save you a lot on tax. Browse through in detail to see the various offers from different loan companies and choose the one that provides maximum benefit and rebate.
Scout for Ready-to-move Homes
With the uncertainty of migration labourers amidst the pandemic, it is always advisable to opt for ready-to-move-in properties and not an under-construction house. Even though ready properties might be a little costlier, they would reduce a lot of other hassles for you. Hence, if your budget allows, you should go for ready-to-move-in homes as your second home.
Go for Suburb Regions
For a second home, a little away from the main city, in the suburbs, works as a key trait, and to its advantage. Post pandemic, with social distancing a necessity now, people are flocking to buy or rent homes in the suburbs as their second home where they can have some leisure and entertainment, away from the hustle-bustle of city dwelling.
Hence, a home in the suburbs can be a good investment if you are looking for better ROI in the future. You can strike a good deal with the home developers and get an edge over it.
Verify the Documents
Even though it's the second time you are buying a house, you should check each and every element in the process very carefully. This includes checking every detail of the documents and verifying them to be sure so that you do not land yourself up in any scrupulous deal.
Keeping the above pointers in mind can ensure you a safe investment in a second home. If you are looking to invest in a second home, you can consider homes in various projects from TARC, one of the prominent developers in Delhi, NCR and nearby areas. With a legacy of over four decades, TARC Limited brings multiple real estate projects that include luxury residences, lifestyle hubs and industrial parks. Invest in one of their projects and secure your future with better returns and a property to flaunt.