Stocks, bonds, mutual funds and other financial investments have not done well in the new millennium. Most investors find that their home is the best performing asset in their portfolio. For investors, real estate has proven to be a haven with appreciation far exceeding other investments. Due to the increasing value and security of residential real estate, an increasing number of homeowners are now investing in a second home. In this article we are going to find out that, Is buying a second home a good investment in India ?
People build or purchase second homes for a variety of reasons. Some city dwellers might want a weekend or holiday home in the country. The Baby Boom generation is looking forward to retiring and building second homes anticipating they will become their primary residence.
The primary reason for owning a second home is still lifestyle, but investment considerations closely follow. There are several reasons why owning a second home makes sense financially.
The appreciation of vacation residential property is forecasted to continue for several years into the future. According to the changing demographics, second home ownership will remain strong for the foreseeable future. Retirement age Baby Boomers have more wealth than any previous generation, and surveys show that owning a second home consistently ranks in their top one or two priorities.
Second-home ownership has tax benefitsas well. Due to the deductibility of mortgage interest for first and second homes, owning a home is one of the best-leveraged investments. In addition, if you move into your second home and live there for at least two years, you can avoid capital gains tax on the sale of your property.
Nowadays, conducting business in a remote location is common because of cell phones and the internet. Executives and managers no longer have to spend the entire working week at the office, allowing them to use their second homes more often than before.
Real estate has always been a safe investment. With a growing number of reasons why second home ownership makes sense, the demand for good locations and quality homes will rise. It is expected that second home ownership will be as common in the future as two cars are today for most households. Investment in a second home today will certainly be viewed as a wise decision in the future.
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