Four Points To Ponder Upon Before Purchasing a Second Home
The boom in service sector has allowed more and more people to afford a second home. Many YUPPIES (young urban professionals) lifestyle and investment considerations allow them to purchase a second home. Owning a second home makes good financial sense because of the appreciation of vacation residential property and tax benefits that come with second home ownership. Buying a second property has a few different factors to it as compared to the purchase of the first one.
MakaanIQ gets you a few details that you might want to give attention to before buying a second home:
Purpose: One should be clear on the purpose of buying a second home. There should be a clarity as to how much time the person is going spend in the second home. Whether it would be a vacation home or a home that earns decent rental income? This consideration will help you decide on how much time and money you might want to invest in the purchasing the second home For e.g if you are investing it for a business point of view you might want to invest in a prime location whereas if your second home is going to serve as a vacation home then you might want to invest in a serene and tranquil locality.
Rental value: Many people buy a second home as an investment tool or from a business point of view. Therefore one must always look at the rental income prospect. It is always preferable to buy a second home in good locality that can attract good paying tenants with ease.
Maintenance charges: People often overlook the maintenance charges of a property before buying one. Always calculate the maintenance charges before hand; specially if you are plan to buy a second home for your personal use. After buying a second home you should not end up spending a huge monthly amount on leaks and cracks or monthly maintenance payments.
Tax laws: The tax laws concerning the second home vary depending on how you use the second home. Generally, you can enjoy a tax benefit on the purchase of a second home.