The Various Advantages of Owning a Second Home

July 3, 2023
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It is certainly not uncommon for people to consider buying a second home, and for very good reason, as doing so can end up serving a range of purposes. People are often content with owning one house and believe it might be unnecessary to buy another, perhaps as they believe that its only use is as a holiday home. But a second home, whether it is a 4 BHK apartment in North Bangalore or any other place, will turn out to be a superb investment in a number of ways. We at L&T Realty have put together a list of just a few advantages of making this investment.

There’s No Place Like Home… Except Maybe a Second Home.

Broaden Your Horizons for Real Estate Investment
Becoming the owner of more than one property can do a great deal to help diversify your real estate investment portfolio. You can do so by renting out the other property when you are not actively using or living in it. This will help you generate a steady influx of funds every month and expand your investment portfolio. Renting out the property is also a relatively risk-free method of diversifying, and there are not many variables which you would have much trouble dealing with. Whether you are looking to invest in flats in Ghatkopar or any other area, a second home is a great way to flesh out your portfolio.

Enjoy a Range of Favorable Tax Benefits
There are a number of tax benefits when it comes to getting a house loan for buying a second home. These include up to 2 lakh INR with accordance to section 24B, as well as up to 1.5 lakh INR with accordance to section 80C of the Income Tax Act. To be eligible for such benefits, you must ensure that either loan has been filed under your name. While most loanees are well versed with the kind of tax benefits which come with getting a home loan, they may be a bit unsure about the tax benefits of getting a house loan for purchasing a second house.
Until a few years ago, the tax benefits which came with house loans were only available when you were looking to purchase one home, and would not be possible if you were purchasing a second one. This was amended in 2019, allowing homebuyers to receive various benefits for house loans for a second home purchase.

Secure Yourself for Post-Retirement
A great advantage of buying a second home is that it will be huge in helping you save for your retirement, and thereby getting you to a comfortable financial situation post-retirement. Renting out the property while it is not being used as your primary place of residence is a fantastic way of generating some passive income. It will certainly prove to be a more lucrative idea for you rather than simply buying the home and only using it on certain occasions or in specific periods across the year. This rental amount can prove to be substantial, and it might also be possible to raise rental rates especially considering the potential rise in the real estate market. And when you are finally ready to retire after many years of working hard, you will be in a much more comfortable place.

A Haven for Your Getaway
Another major benefit of buying a second home is that it gives you the opportunity to travel while also not having to pay for the high vacation stays. This is why getting a second home in a place where you would like to spend your days off would be a great decision. It is a particularly attractive idea to people who spend most of their regular time in the loud and busy city, and would like to unwind in a place of their own. You can also still make it available to renters for when you are not going to be there, allowing you to generate income while not letting the property just gather dust.

As you can see, owning a second home can be highly beneficial to homeowners. Whether it be gaining a steady source of passive income, helping you save for retirement, gain some valuable tax benefits, or simply having a place to stay for your holidays – a second home can be a genuinely brilliant investment. Whether it is a 2 BHK in Powai or any other locality, a second home might just be the best investment you can make.