Taking a cue from the West, Second-home market is heating up in India. As the real estate trend rises, so do the investment plans of each buyer. Call it a vacation home, personal retreat, or a home away from home the second-home market is becoming a rallying point for developers and investors.
The second-home market is, to a great extent, immune from recession, and operates on slightly different considerations and dynamics. The reasons for buying a second home are mostly for investment purposes or for polishing up one’s status.
Demand for such homes is completely dependent on the availability of disposable income, as a second home is not a necessity, rather a lifestyle choice in most cases. The primary target audience, almost 75% in such cases, is the high net income group, which has surplus available funds to invest, and the remaining comprise the upper-middle class.
For the religious-minded, second homes means having a foothold in Haridwar, Rishikesh, Mathura, etc. Whatever be the trigger, a common aspect is that second homes provide you the space to indulge yourself in activities you love – be it to connect with nature or God, or enjoy the sheer opulence of lifestyle amenities! It’s a temporary refuge that gives a break from the fast-paced urban environment.
But before buying a second home for yourself, you need to have awareness on the details of a holiday home rather than spending all your hard earned money on an unworthy land. Below are few tips on how to go about it:
Location: This is one of the vital parts of owning a holiday home. Location matters a lot when you plan to stay and invite your guests over to your holiday home. Make sure that your holiday home is located in a place suited to you and is popular. Also the location can fetch you a good amount down the years in case you have planned to sell it.
Budget: Once you have finalized the location and the type of property, you need to plan a clear cut layout of your investment. Make a list of all the properties according to your budget and the loan amount. Make sure that the property which you buy is affordable by you. Also calculate the acquisition cost, transfer fee, conveyance fee, interest rates and various other expenses. Apart from just owning a holiday home, you can also rent your holiday home and make money out of it.
Size of the property: Decide on the size of the land you would like to own. If youre planning to build your holiday home/ buy a readymade one, you need to consider the size of the land. Also consider the soil and the topography factors.
Maintenance: Once you have bought a holiday home, the most important part is the maintenance fee of the holiday home. It is very important that you consider the maintenance costs of your holiday home while buying the land. Also appointing regular home inspection specialists for maintenance is advised.
Rental cycles: Lastly, it is important that you are aware of the holiday home rental cycles. The rental cycles fluctuate frequently depending on the location and the seasonal changes. Likewise a holiday home with a beach, a hill or a hilltop area will have different prices. Also the price change is based on the seasonal fluctuations.
