Invest In Properties In India For Your Second Home
A few decades back, the concept of owning a second home was a dream that was nurtured only by the affluent class. However, times have changed. Today young individuals with a higher level of income are more enthusiastic about the idea of owning a second home. They believe that a second home can not only meet their vacation needs but also serve as an alternate source of income, when rented. This is also one of the major reasons why developers stress more on the development of residential projects than commercial properties in India. Treat it as a vacation home or a real-estate investment, we Indians have always nurtured an emotional bond when it comes to making residential investments. Though the reasons for real estate investment can be different from person to person, there are a few factors one should always consider when making home investments.
The first thing you need to do before planning to buy a second home is to analyze your income. You should be able to save a certain percentage of your income every month for EMI's. In India, real estate forums are numerous and there are plenty other websites that can help you determine the required budget. Irrespective of how you plan to use your second home, you cannot retrieve the actual cost of investment within a short period of time. Hence, you need to plan accordingly and make a choice that suits you financially.
The location and the type of house you choose, matters a lot. Be it a commercial property in Mumbai or a residential one, if it is too remote or not in demand, then you are bound to face issues while renting it out. An environment that has a good reputation, nominal maintenance bills and is located in close proximity to public transport, schools, hospitals, etc. offers higher return on investments. A villa or a townhouse not only cost more than regular apartments, but also call for additional maintenance charges which ought to be covered regularly.
Finding a reliable and trust-worthy tenant is a tough task in itself, especially for your real estate in Mumbai. To add to that, you will be obliged to handle additional responsibilities like documentation, legal issues and other petty maintenance issues, if you wish to rent your home. Such responsibilities will not only consume your time but will also exhaust your initial profits. It is not advisable to take loan from banks, as they usually charge a higher rate of interest. Some banks even charge an additional fee if you pay your EMI's before the period of completion. Hence always check for alternative financial resources, before heading towards banks.
A visit to the local county office will help estimate the required finance and they will provide you with the information needed for managing financial resources for your new home. Given a choice, go for 25% down payment as that leads to decreased interest rates. Haste makes waste. So, think before you invest and always cross-check the documents before you sign the agreement. With adequate research and planning, rest assured to find a desired second home that fits in your budget.
Umov Mehta is a renowned real estate expert at the largest website which deals with 'India property'. His work is appreciated by top professionals in the industry.
