4 Advantages of having a second home

We all have dreamt of buying a second home, perhaps on a beach or tucked away in the mountains or maybe another city. . Having a second home has its benefits and it can turn out to be as advantageous as your first home, even if you are buying it as a form of investment or to secure your future. Several other advantages come with buying a second house, some of which are:

1) Investment

Many people put their money in fixed deposits, equities, mutual funds, or gold but, if you are planning to invest in something bigger, a second home is a way forward. Many top architects in Bangalore suggest that investing in real estate would help you garner better returns than any other asset.

2) Tax benefits

rnBuying another property with a home loan makes you eligible to avail tax benefits. So if you are living in your primary house, you will be qualified to claim deduction under section 80C, if you have repaid up to Rs. 1 lakh of the principal amount. Furthermore, if you have repaid Rs. 1.5 lakhs of the interest you will automatically be qualified to claim a deduction under section 24b. Now, if you are planning to purchase your second house, you are eligible for further deductions on the interest paid and some other benefits. They are as follows:

There is no cap on the interest amount repaid if you want to claim a deduction. For instance, if you are paying Rs. 5 lakhs as interest, the whole amount will be eligible for deduction.

And, if you have a second home and decide to rent it out, it will be called a ‘let out’ and that will make you eligible for 30%.

3) Rental income

rnSeveral top architects in Mumbai suggest that people buy a second property, not for their own use but to rent it out. With professionals moving to metropolitan areas for a better job, there is always a demand for rental houses. With social media on the rise, you don’t need brokers to help you find tenants. All you need to do is handle the maintenance of your house and rent it to young professionals or a family and give them a chance to make memories. In addition to that, having a company occupy that space would provide you with a lump-sum rent every month.

4) A home away from home

rnAfter a tiring few months at work, don’t you think it’d be a relief to get out of the city and unwind but within the comforts of your home. Second homes are often located in areas that people like to visit like mountains, seashores, resorts - and their attraction is universal. As a result, top architects in Delhi believe that homeowners often trade time in their house/work for a home at another place. rnIf you end up with two properties in different places, you can, in the future, think of moving any time you feel like. Sometimes a change of place is all we need.