Buying a second home for a luxurious staycation in times of vacation is as special as buying the first home. However, you already have gone through the procedure of buying once; you will require appropriate guidance to buy the perfect second home investment property in Mumbai. We have listed some important factors that you should consider when making a purchase.
- Consider your home budget: In case you are planning to buy a second home for a luxurious staycation, then do consider your financial stability and evaluate if your budget allows you to make the purchase or not. Like multiple costs incurred while purchasing your first home, the same costs, such as acquisition cost, mortgage payments, insurance expenses, maintenance, and property tax, will be required to pay for the second home. Therefore, it is better that analyse your finances, prepare a budget, and then make the purchase accordingly. When evaluating the insurance cost for the house, it’s vital to consider the weather and climatic conditions of the area where you are planning to buy the second home.
- Choose the home location: You need to determine the appropriate location for your second home. The location chosen for the vacation should offer you a peaceful environment. Also, the property in a specific location should be easily accessible to basic amenities such as hospitals and convenience stores. It’s crucial to consider the property’s appreciation potential by buying a second home or villa in a particular area. Getting your second home located at a premium location and equipped with multiple facilities and entertainment options can boost its value in the market.
- Evaluate the return on investment: Another major aspect to consider when looking forward to buying a second home is the potential rate of investment offered by the specific home. The estimated rate of investment depends on several factors such as the area where your house will be located, the demand of the properties in a particular area, infrastructural facilities such as roads, highways, public transportation systems connecting to neighbouring cities. Getting a home offering a high rate of investment is a profitable option for the long run. Therefore, it is best to invest in the localities, the value of which is appreciating at a faster rate.
- Methods to fund your second home: Before you start the research for the locations where you can have a second home for your vacation, it is essential to determine the methods you can use to finance the purchasing. You can either use your savings to pay the purchase price or can take a home loan. In case if you do not have sufficient savings, then just apply for a home loan in any reputable bank. Home loans are considered the ideal option as it allows availing of the tax deduction on it.
Before you start looking for a second home investment property in India, you should be clear of your long-term goals, budget, the location where you want to spend your vacation, rate of investment, and amenities required.