SFS Homes

What Advantages Come with Owning a Second Home?

November 10, 2023

Owning a home is the dream of every human. And they work hard until they own one. Once their dream home is bought, they will settle in that residence for the rest of their life. But is that one home enough? Why should one consider owning a second home? Do you even need a second home?

Well, the answer is yes. Having a second home is beneficial in certain ways. More and more homeowners are turning to their second homes to boost their financial stability as the value of real estate has soared over the past few years.

Second Home

Here are the benefits of owning a Second Home

Add to your portfolio of Real Estate assets

Adding a second home (or more) as assets will benefit you. when you have a secondary home, you can rent it out while keeping your primary home for yourself. Thus, it serves as a secondary income source. This is more beneficial if you have multiple residents at multiple locations as multiple sources of income. It can be extremely beneficial if you want to expand your real estate holdings.

Your financial security will grow
You can add strong financial security by owning a secondary home. There will always be people who are willing to relocate temporarily. The second residence can always be rented out for a fixed rent on a short-term or long-term basis. Based on location, area, and facilities, people will pay the rental amount as per the current real estate prices. Thus, adding this as a secondary source of income will help you achieve good financial security as well as reduce overall debt since you will immediately start getting a fixed income every month. The rental income from the second property can be used to pay off your home loan EMI or any other debt.
Advantages on Tax

There are some tax benefits availed for loans to purchase a second home in India. While Section 24B allows tax deductions on the home loan interest rates paid out to service the loan, Section 80C offers tax savings on the principal amount. Additionally, borrowers are eligible for tax deductions of up to Rs. 1.5 lakhs under Section 80C and up to Rs. 2 lakhs under Section 24B of the Income Tax Act for principal payments made on home loans.

Secure and Risk-free

Investments in real estate often yield greater returns than those made in other types of assets, particularly if the property is situated in a good location. Since the real estate market is always in high demand, there is no need to worry about price fluctuations. You may also sell the house in the future if there is any financial requirements.

Vacation Residence
Owning a second home gives you freedom of choice. If your second home is near to your favorite vacation spot, you can move there as per your will and stay there as long as you want. You don’t have to rent an expensive hotel or home to enjoy your vacation spot. You won’t have to stress about where to go on vacation or who to take with you if you buy a vacation property. You can choose who will join you and how long you’d like to stay on your holiday property. With a second home, you’ll have the freedom to spend weekends somewhere new and the opportunity to entertain family and friends.
Create a Retirement fortune
Having a second home is beneficial at the time of your retirement. You will be able to get a fixed rent every month while having a good retirement life. If you intend to retire soon, it might be extremely helpful. It is extremely helpful in potential turning points such as retirement, children’s education, children’s marriage, and so on, in addition to providing tax benefits and extra income through rent. Because rising inflation is offset by appreciation in the net value of the property, it is regarded as a safe investment for events in the future and unforeseen circumstances.
As the benefits mentioned above indicate, investing money in a second home is a reasonable choice.
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