In the current scenario, owning a home is by far the best investment decision one can make for several reasons. There is scope for value appreciation, the stability of having a fixed residence and above all, the freedom to live life on your own terms. But should your quest to create a concrete asset stop here? There was a stage when investing in a second home meant exploring possibilities in a different city like Pune or Nashik.
Then it evolved to locations closer to Mumbai, like Talegaon and Alibaug, which have now also become much more accessible with an even wider range of residential options as well. In fact, Karjat and Boisar, once labelled second home options have stared attracting first home seekers in greater numbers as well due to the improved connectivity.
Today, astute individuals are thinking beyond aspects like property prices rising over the years, which will make a currently feasible second home investment unaffordable after a decade and the inevitable post-retirement shift of the elder generation to facilitate family growth and enable the next generation to stay comfortably in the existing apartment.
They are actively considering the possibility of investing in real estate within the Mumbai Metropolitan Region (MMR) extended suburbs or ‘exurbs’ at a shorter radius from their existing home and with good reason. So, what are some of the factors driving these real estate decisions and that too, from an entirely different perspective?
Commute
A second home purchased within the MMR exurbs will be useful as a weekend getaway while simultaneously also being a good investment option over the years. Given the lengthier workdays and having to attend office on Saturdays also, it becomes quite difficult to take even a long weekend vacation.
Traditional second home destinations require travelling almost 6-8 hours by road one-way so one spends almost an entire day just going back and forth. In contrast, having a second home nearby within the MMR limits means a much shorter drive, within 2 hours or slightly more than that.
Such a quick and easy commute provides all the benefits of having a second home without the extensive travelling, which can be tiring and the exhaustion on returning totally defeats the entire purpose of going on a holiday.
Usage
It doesn’t require a knowledge of rocket science to figure out that your real usage on a yearly basis will definitely be higher if you have invested in a second home in proximity to your regular residence. Taking more weekend trips will also offset the cost involved in asset creation, as against a distant location that will eventually be visited on just a few occasions annually.
Returns
Most importantly, when your second home is in the MMR limits, giving it on leave and licence is much less complicated as compared with a distant location. You can visit the project regularly to keep tabs on what is happening, inquire with neighbours about the occupants maintaining the terms of the agreement and even do a personal inspection once in a while if you get any feedback that requires verification. You will get a steady inflow on a monthly basis from your concrete asset and that is the key decision driver for most of us.
Pricing
Units at well-known second home destinations are also famous for the higher price tag. For instance, Lonavala, Khandala, Panchghani not feasible for those with a limited budget. However, low profile locations in the MMR exurbs are still reasonably priced with smaller units available for those who want a compact home that can be sold later on, when you have the additional income to upgrade and get a bigger sized accommodation. The pricing at that stage would not support a complete purchase but your initial second home investment would facilitate the transaction to a considerable extent due to its value appreciation. Now that is a ‘return on investment’ worth the duration you waited for, isn’t it?
