Buying a first home takes a lot of time because of the in-depth research into all the processes starting from the idea of a perfect home. After getting the ownership of the first home, you will sense a high level of confidence and satisfaction because of the ignited knowledge about the documentation, site visit, finance, and home loan options, and the list is vast.
The choice of a second home will have different parameters, and the essential documentation and focus on the builders' credibility remain high. Here are the reasons to understand the numerous benefits of having a second home.
1. Plan your finance for the future
The concept of a second home is fruitful when you plan to multiply your finances over time. When the house is up for rent, it will help you receive a stable income through monthly rent. If the second home is given for lease, then there is enough to repay and settle all debts and get a good return on investment from this home.
2.Best retirement security
Buying a second home can also be one of the best retirement plans. It will be helpful if you want to settle away from the hustle and bustle of the city and have a property meant to be rented out. A good plan in anticipation of the souring property rates will help you earn much more income, and this can be invested tactfully in setting up a roadmap for a stress-free retired life.
3.Get the most income tax benefits
Home loans are subject to many tax benefits or savings per Section 80C, and you can claim a tax rebate of Rs. 1.5 lakh on the principal loan amount. In the case of Section 24B, you can quickly get a seduction of Rs. 2 lakhs which again helps you to invest that money elsewhere. Buying a second home will help in availing tax relaxations.
4. Assured return on investment
Experts suggest that when a second home is bought, the location must be kept in mind, preferably a prime area that will grow in property rates with time. When a second home is purchased, this will be a good investment decision because the resale value will always be higher, even if there is inflation. It will cover the initial investment cost, and you will not incur a loss.
5. Good way to travel and relax
Interestingly the second home need not be in the same place as your residence. You can purchase it as a vacation home in some other idyllic or tourist location where you and your family or friends can go on a short vacation. It will not only be easy on your pocket but also will gie you a lot of freedom to decide on the duration of your stay. Such second homes make vacations fun and frolic.
If the purpose of investing in a second home is for renting it out and eventually selling it in the future when the property rates sour higher, you will surely benefit.