Buying a second home is something to be extremely proud of, for it shows that you are a great investor and financially stable. It also gets you a passive stream of income that adds to your long-term financial security. As you have already gone through the process of buying a home before, you are probably familiar with the documentation and loan procedures. But there are certain factors that you need to consider thoroughly before making a decision on that apartment in Chennai that you want to invest in.
Factor in your budget:
Since you have already made a huge expenditure on the first house, you might need to review your financial stability. The second time doesn’t come with any discounts, as you have to pay all the documentation charges, insurance, taxes, all over again. Sit down with the family, and discuss your budget before you start searching for options. Make a list of all the expenses including your monthly home expenditure and see how much extra money you have to invest. Freeze it, and then search for homes that are within it. If not you might end up overstretching financially without even realising it.
Location of the home:
Everyone dreams of the perfect neighbourhood to live in, but you already own a home in the place you want. Choosing the location of the second home depends on your purpose of investment. If you want to shift there, then you need to consider your personal preferences, but if you want to rent it out, then a different set of factors govern it. Apartments in Chennai that come with a great set of amenities and are located with easy access to all facilities get rented out quickly.
The location also determines the property appreciation over the years. The better the neighbourhood, the sooner you will reap good returns on the property.
Return on Investment:
The most important if not one of the most important factors is the expected return on investment on the home. Connectivity, safety, facilities, and upcoming infrastructure projects in and around the area determine the rate of appreciation. If the home is located in a commercial area, then the ROI is higher. The neighbourhood must not have been affected by natural calamities like the past floods and should have 24×7 access to electricity and clean water.
Long-term plans for you and the home:
Your plans for the future also decide how much you can spend right now in acquiring a second property. Are you looking to increase the value of your portfolio or as a vacation home for your family? This sets the boundaries of how much to invest, where to invest, and the size of the house. If it is an investment you are looking for, then consider apartments in Chennai from reputed builders with good experience in developing projects within the city. They usually guarantee assured and high rental income and other short-term and long-term benefits.
Assimilate the funding:
When it comes to funding the home, you can pay it out of your pocket from your savings, or take a home loan. Since it is a huge financial commitment, it would be wiser to avail a home loan, than nearly empty out your life savings as you need to consistently pay off the mortgage. This also lets you continue on with minimal changes in your lifestyle. There are also the tax benefits of taking a home loan which can be up to Rs. 2,00,000 for both self-occupancy and rented properties. If you are leasing the property, you are also exempt from the wealth tax.
Real estate investment is an important milestone in everyone’s life, as it signifies growth and stability. Whether your second home is for you to occupy, or to rent out, it will surely be a valuable asset to you and your future generations. It is also one of the safest investments to make that yields guaranteed long-term returns. Lifestyle Housing would prove to be an invaluable partner in this phase of your life especially if you are looking for a gated community in TNagar. Our new residential project in TNagar, Chennai spills over with luxury and is located bang on one of the busiest roads there.