Is Buying a Second Home a Good Investment?

Before purchasing my second house, I used to think: Is buying a 2nd home a good investment? As per my experience, I will say yes a second home is a popular and profitable investment option in India. It provides us with a consistent rental income and a sense of safety and security. Let me share my experience below. 

Is Buying a Vacation Home a Good Investment?

I spent almost Rs 25 lakh on a spacious house in Bangalore about 10 years ago. I made the decision to invest since the project was within my budget and was being built by a reputable builder. After that, I began renting it out for weekend trips. 

After a few listings, my rent began to cover the EMIs that I took. I was able to pay off my house loans with the rent I received. In addition to this, I now own an asset that brings in a solid rental income after my retirement.

Over the years, my property values will keep increasing. As a result, it will offer me the possibility of a good return upon sale. It can also provide a number of financial advantages as mentioned by Rohan Dutta above. 

Moreover, it is important that you weigh the expenses, risks, and market conditions thoroughly before making an investment. I hope this answers your question on is a second house a good investment or not.

Buying a home is itself a pretty big deal. But purchasing a second home is another level of happiness. If you have purchased a home for the first time, paid its home loan and now you are thinking of buying a second one, I will have to say it is indeed a big achievement. Because purchasing a house takes up a lot of blood, sweat, and tears. But is buying a second home a good investment in India? 

Well, yes! Buying a second home is a good investment. The interest rate for taking a home loan is all-time low. So, this is a good time to seize the opportunity to buy a second house. I will share with you three reasons why is it wise to buy a second home.

• The appreciation of the property will give you good returns

Even if you find a plot/house outside the city, you can think of buying it. Properties outside the city are cheaper but due to growth and development, the price of the property will appreciate in the longer run. Also, buying an asset provides you security. Let’s say you need money for a wedding or to buy another asset, you can easily sell your house to generate the revenue.

• Tax Benefits on Home Loan 

If you avail of the home loan you can exempt your tax under Section 80C and Section 24B. So, if you are looking for a way to claim tax exemption, I would suggest you buy a house and get a home loan. That way you can save on your taxes.

• Rental Income

After buying a second house, you can easily rent it out and generate income. You can pay off your home loan from this rental income. In this way, someone will take care of your house and maintain it and you will also be able to pay your home loan without any hassle.

I hope you like my answer to the question ‘is buying a second home a good investment?’

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