Real estate is a huge industry and even a small investment can often mean lakhs of rupees. Buying a property surely adds financial pressure from buying a second house can often be overwhelming. Let’s look at some dos and don’ts for buying a second home.
As post the pandemic, people have understood the value of owning a home and that is why the first-time buyers will continue to dominate the market in this scenario. But still, there are people who are owing to the overwhelming demand for housing. That is reason for the uprising demand for second homes for sale could also rise, in the backdrop of the pandemic.
As because of Covid, the social distancing becomes the new normal, people are actively looking for second homes/ vacation properties. And usually the demand is in affordable markets in the suburbs. However, buyers must take certain basic precautions, to ensure that the investment does not turn unprofitable. Therefore, there are several points that home buyers should keep in mind while buying a home second time.
Points To Consider, Before Buying A Second Home
Take a home loan
Property buying requires a good capital and research, and it is crucial to find the best suited property at a good location. Buyers who cannot pay entire for the purchase of a second home, should consider a home loan.
The COVID-19 crisis has also led down the level of interest rate to a record low. As per the current rates the public lender SBI, for example, is offering housing loans for 6.65% per annum, after the RBI reduced the repo rate to 4%. This has attracted the interest of home buyers to invest in real estate.
As deposit rates are currently low (between 4% and 5%) it does not make sense to keep the cash in fixed or recurring deposits. In case of housing loans, buyers could save up to Rs 7 lakhs in taxes, on the purchase of their second home, if the loan is taken in joint names.
Look for ready homes
The more demand is observed in ready to move in projects to avoid the risk of delayed possession or even no possession. If you are searching for a second home also, and do not need it urgently still try not to go for under-construction property as might not be ideal. In current scenario, even if you are choosing a credible developer brand there is assurance that you will get delivery. Though it is completely buyer’s first choice, for the purchase of their second home. If their financial position allows them to invest in a ready property, which would no doubt be costlier than an under-construction property.
Choose A Home In The Suburbs
An excellent location is always an advantage for the property for sale but if you look for properties in the suburb for your second home then you can save a lot. As social distancing is going to be an integral part of our lives, the suburbs are a great choice to book for you second home.
Thus, though you are not a first time buyer but still you can tend to make mistake while buying a second home. Hopefully this blog has helped you out in finding the perfect home for your family. Happy Investing!!!