Looking for a holiday home or a second home? The first step is to think if it is worth the investment – to pump in money in a property where you might stay for a month once a year. And if it is not only for your personal use and you plan to rent it otherwise, does it still make sense? Realty experts have maintained that a second home is more of a lifestyle need rather than an investment for commercial gains, we find out more.
For personal use
It’s a good idea to buy a holiday home in the outskirts of where you live or a place where you frequent, so that the investment serves the purpose. For instance, if a family is staying in Mumbai, ideal destinations to buy a second home would be Lonavala, Khandala, Khopoli, Golwad, Wagad, Palghar among others. This is because travelling to these destinations would be less than two –three hours, which is workable during weekends and other public holidays. On the other hand, the farther the holiday home is from the place of residence, the difficult it becomes to access, thus defeating the purpose of spending a holiday at a home away from home.
When you plan to invest in a holiday home for rental purposes, there are many areas associated that have to be addressed before taking the final decision. Firstly, one should be prepared that the rentals for the holiday home will vary according to the peak tourist seasons and this proposition should be sustainable and profitable for the investor. Additionally, keeping in mind the social and infrastructure in the holiday destinations, the location of the property will make a difference when it comes to the rental yield. For instance, in a beach destination, a property closer to the beach will earn more rentals than one which is far from it.
Maintaining the property
Maintaining a holiday home is far more difficult than maintaining a regular house. The house should be done up with proper furniture and upholstery, kitchen appliances and availability of basic facilities like water, electricity etc.
After taking a decision on the above mentioned factors, when it’s time to buy a holiday home, a great amount of due diligence is required. In case of a resale, check all the documents and ensure availability of basic facilities in that area and the quality of construction. While buying second home, realty experts recommend investing with reputed developers to avoid problem of any kind.