The concept of Second Homes has always been around, though often restricted to the extremely affluent. It is this class that could afford to have a home away from home, for vacationing or for an occasional weekend relaxation. You work hard every day for years at a job you love. You put as much money as you can away, you support all of your dependents and live comfortably. After years of responsible behavior and sound financial planning, you finally decide to buy a dream vacation home.
The Highlight of Second Home
1. A Perfect Vacation Home
Those living in big cities can opt for homes in the suburbs or nearby destinations as their weekend homes and reap the benefits of a relaxing getaway. Combinations such as Mumbai-Pune, Delhi-Jaipur, and Chennai-Bangalore can help you enjoy your weekend in a different city without being unduly bothered about hotels or guest houses.
2. Tax Implications
Usually for a second home given on rent or which remains unoccupied there will be a tax rebate available on the interest amount paid on the loan taken. To read more on tax implications with regards to your second home.
3. A Word of Caution
The quantum of investment and long-term value that a house, whether first or second, holds is huge. Therefore, there is a strong case for exercising proper due diligence and doing the required homework before you finalise the purchase.