Millennials buying homes can sound a bit surprising, given how unwilling most are to commit to a lifetime of EMIs early on in their career. However, many millennials are slowly changing their perspective towards real estate, while some are still very reluctant to invest in a city home. So, what has changed? Well, Indian millennials are slowly embracing the buying vacation homes trend!
Wondering why so many millennials are making vacation home investment? Here are some reasons why.
You’re not always going to live in your vacation home, which means you can rent it out while you’re away. Especially if it is located in a good real estate market, turning it into a rental property will give you a solid second source of income. You can use this money to cover your own rental expenses or to pay off the loan EMIs.
Just make sure the house is located in a popular travel destination, so you don’t face any troubles in finding tenants. Once the location is finalised, you can hire a local real estate agent to find the best property for your vacation home.
Real estate values, especially in popular travel destinations, tend to go up over time. So, even if you don’t have the property out on rent, it could still build you a substantial amount of wealth over the years. With rent, you could turn your vacation home into a steady income source.
Additional Read: Why Home Loan Market for Millennials is increasing Post COVID
If you take vacations more often, having a vacation home can help you save a lot on travel expenses. Unlike hotels that follow strict room policies, you can customise your vacation homes according to your needs and preferences. Also, if you have a pet, having a vacation house can save you the trouble of finding pet-friendly destinations, which are often quite expensive.
Lastly, a vacation getaway also allows you to invite your friends or family over and have a fun weekend. Show-off potential is also high!
Retire in style
Your vacation home could eventually be a full-time home. Buying a vacation house when you’re relatively young could offer you a desirable place to retire down the road. Nevertheless, if you’re thinking of turning your vacation home into a retirement retreat, make sure the house isn’t in the middle of nowhere. Choose a property that has easy connectivity to hospitals, shops, places of transport.
Additional Read: Smart ways to Manage Your Home Loan in Time for Retirement
To sum up
Whether you’re buying a vacation home for retirement or as an investment, it sure has many benefits for millennials. If you’ve got your eyes on such a house, but lack financial backing, a home loan from Tata Capital could help you out!
With flexible EMIs, easy home loan eligibility criteria, and attractive rates, our loans leave little to be desired.
Head on to our website today and plan your loan using our home loan EMI calculator.