When it comes to investing your hard-earned money, most Indians incline towards buying a second home!
But while there are significant benefits of purchasing a second property, there are also some considerable risks involved. Therefore, you must weigh in all the factors before making this financial move.
If you already own a house and plan to buy a second home anytime soon, this article is for you!
When is the right time to buy a second home?
The pandemic dampened the market for the first quarter of 2020, with many potential buyers pausing to re-evaluate their decision to buy a second property. However, there has been a resurgence for affordable housing in the past few months.
As people have been forced to stay at home for months, demand for bigger houses has been growing steadily. Because of this, there has been a significant shift in the real estate industry. Buyers can now take virtual walk-throughs instead of site visits and do transactions online, making the buying journey a lot smoother.
Safe to assume, now is a good time to invest in a second property!
Additional Read: Important Questions to Ask Yourself before Buying a Second Home
Things to consider before buying a second home
If you have your eyes on a ready-to-move property and are considering a home loan to finance it, make sure you have at least ten years before your retirement to pay off the loan comfortably.
But if you are unsure when and how to buy a second home, here are some things to keep in mind:
- Purpose of investment: You must be clear about your intention of buying a second property before going ahead with the purchase. This will help you create a clear picture of the requirements and choose a house that fulfils them. If your purpose is to buy a vacation home, you must look for a suitable location that fits the lifestyle you are looking for. Similarly, if you seek rental income, you must take steps accordingly.
- Location of property: It is crucial to research the locality where you plan to buy a second home. Moreover, if your investment purpose is to get rental income, you must find out the rental rates in multiple areas and compare. Pick a location that fetches the desired rent with security and good connectivity to attract tenants.
- Cost of the house: Buying a home is not an easy task, and you must start by creating a budget. Calculate all the expenses involved in the process and make sure to stay within your budget. Also, keep your short- and long-term financial goals in mind while creating the budget to make sure you stay on track.
- Finance options: Before making any investment, you need to know your finance options. If you plan on taking housing finance, check your home loan eligibility beforehand and pick a trusted lender.
Additional Read: What are the Advantages of Owning a Second Home?
Are you looking for a suitable loan to purchase a second home? Tata Capital is here to help! Our tailor-made housing finance services provide competitive home loan interest rates, flexible repayment tenures, a seamless documentation process, and much more. So, give us a call and avail of our housing loan services today!