Second home: buyers nod for inordinate desire!

By Accommodation Times Bureau
By Nimisha Gupta

After investing in the first home of choice Indian property buyer are now gearing for the second home. It is a belief that having two house is more beneficial rather than having one, what one house cannot provide the other can.

In the choice of first factors like ambience, comfort, greenery, luxury, exoctic is all sacrified as far as daily living is concerned.

On the other side, the buyers are dispending these limitations and investing as per their choice. Second home famously known as vacation home is the emerging trend among the age group of 30-40 as such homes is either for investment or for holidays. These age bracket people are generally tend to have higher disposable
incomes or they are from the top managements or the higher middle class.

The important reason behind the abrupt investment is finances, fun, family and future. A vacation home basically plays various role one’s invested, it can boost your finance if given on rent, a small vacation for the family, friends getaway and for golden years locking in future retirement. Most importantly the real estate
market is volatile, correct investment will be fruitful.

The market of second homes may not be the talk of the town but it is slowly gripping the real estate markets. It is likely to grow more and capture the industry. The demand for second homes is likely to increase of 60-70% of growth.

It is an emerging trend as Indian economy growth is also showing an upward trend. One major reason for the progression is the cost of the homes which starts as low from 5 lakhs making it affordable and in reach of middle-class people too.

The demand for second home increases every year. The current market trends indicates that impretation for the mid-segments second homes will see a acceleration.i.e homes ranging from 60 lakh to 1 crore and below that, and higher segment will progress timely.

The name second home itself defines a home that offers all that prerogative that a first commercial home does not provide.

The best place to invest in second home which beautifully close to nature. If we talk about the choices of buying the second homes booming places are Goa, Alibaug, Pune, Khandala, Karjat, Shahpur, Wada, Lonavla, Shirol etc.

Lonavala has been the most sought after monsoon destination for picnics. But in the past few years, Lonavala has emerged the most preferred destination to invest in a Second Home.A coveted hill station in Pune district, Lonavala is the charm of the mountainous ranges of Maharashtra. Rich with the gifts bestowed upon by Mother Nature, from just being a vacationer’s paradise, Lonavala is transforming into a Second Home destination. It is located approximately 64 kms away from Pune and is 96 kms away from Mumbai. The Mumbai-Pune Express Highway has made it more convenient to travel to this place with maximum
comfort and is considered the most important town on this route. The Mumbai- Pune old highway is still a route worth travelling which passes through Lonavala.
A destination with so many advantages to its credit definitely makes it ideal to own a second home.

Khandala is the other dream location of hills, waterfalls & natural beauty. Blessed with natural beauty, Khandala is a coveted hill station of people based in Mumbai and Pune. The purity of this place still remains undisturbed and undiluted.
The surroundings are rejuvenating. Easily approachable by the Mumbai-Pune Express Highway. Located approximately 2000 ft. above the sea level; Khandala experiences pleasant climate throughout the year. The environs come alive during monsoons and the winters are chillingly celebratory. An ideal locale to relieve stress, Khandala is also the residential address of bungalows, villas and farm houses owned by the crème de la crème. Being a very quaint destination, Khandala is most sought after for investing in large tracts of land to develop dream 2nd homes.

Alibaug Imagining a home by a seaside is no more a dream. The globally emerging lifestyle destination of Alibaug; a city of beaches, forts, temples, innumerable coconut trees, beautiful nature & more is a favourite destination of the huge fans of lifestyle with a difference.

Wada If someone thought, the scenic beauties of countryside are fast disappearing then Wada should be a discovery. Wada is a place which balances industrial development with natural beauty of being the rice bowl closest to Mumbai. Once considered a haven of industrial names is now a sought after destination to begin a lifestyle.

Shahapur is located on the ‘Mumbai-Nashik Expressway’ the fastest developing highway connecting Mumbai. Shahpur is an excellent choice when it comes to 2nd Home; it has everything one would want in a second home destination. From the all important aspect of distance from Mumbai to its ‘no-polluting industry zone’ status; from its verdant green environment to the water bodies that dot the landscape – not to forget the serene silence of the location.

Shirol, Kasara On the way to Nashik, travellers are greeted with hills on both sides. Caressed amidst scenic hills is a pleasant place called Kasara. Sandwiched between picturesque Igatpuri and the fast paced Mumbai, it is a pleasant destination to retreat.

Roha destinations are many, where one can visualise a dream 2nd home. Roha is one of them. A small town in Maharashtra, it is located between Kundalika River and Kalasgiri. It is the starting point of Konkan railway which extends towards the north. Well known for Dhavir Temple, Roha is a destination of calm.

The destinations mentioned above hold a great potential of development in the near future. They add wings to the desire of owning a second home where you wish to spend good times of leisure. Reflecting the success achieved, second homes narrate the story of happiness.

Also there are set of people who would love to buy at locations such as Shimla, Manali, Himachal Pradesh, Nainital, Dehradun etc. In the current scenario the ratio of the demand and supply is highly applicable to the real estate industry in India only because of the increasing demand of the second homes. In a study
reveled Kerala is the most preferred location because of its amicable view.

These are the trends and hot spots places regarding second homes now lets talk about the checklist or important aspect while buying a second home.

The most important and first thing a buyer should keep in mind is the budget though there are very attractive schemes one should always go on according to his/her’’ budget.’’Also one needs to think about the transportation, is there any possibility that you rent the house, the area. The point to buy the second home is to able to get a long term investment. Do not hurry because there is no urgency as to where you will live in meantime. So take your time in buying a ‘’one’’ which would be the second haven for that your feet would leave but not your heart.

As far legal matters concerned one gets a loan to buy a second home, but second home will not be treated as self occupied because one already has a house. The tax department views this second home to be ‘’let-out’’ as a result you will not enjoy the benefits of principal deduction. NRIs too faces problem, they can raise
short-term funds by investing. In case the second home is let out to any corporate or public sector undertaking one can raise funds as loan against rent receivable.
NRI investors in second home will have the benefits of repatriation facility as
the rules prescribe that original investments made in foreign exchange upto two
residential properties can be repartriated after a lock-in-period of three years.
Banks provide 1% interest subsidy for home loans of upto Rs.10 lakh.

Housing loans extended to NRI for construction of farm house and to staff members of the banks are not eligible for subsidy under the schemes. As per RBI, non –residant Indian would not be eligible for incentives on interest on home loans.

One also enjoys Tax Benefits on buying a second home. Second house is not taken as a self-occupied house and you have to pay taxes for rental income from it. This income is calculated after deducting up to 30% on maintenance expenses and property taxes. You will again enjoy tax-exemptions via following two ways

Up to 1 Lakh for Principal Repayment under section 80 C

Unlimited Exemption on Interest Repayment, albeit with a difference. Loss from house property is calculated as Annual Interest Repayments minus the Adjusted Rental Income and this differential amount is eligible for tax-

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