Isn’t it amazing that by 2025, the real estate sector will be contributing around 13% to the nation’s GDP? According to a 2019 report, over 50% of people in India live in their own houses. While living in your own home, you can consider getting another one for investment purposes, as a vacation home, or to generate rental income. If you’re worried about the budget or thinking home loan kaise milta hai
, you can get it disbursed in less than 72 hours. You can also avail a loan against property in just a few steps. But before buying a second home, there are 5 factors you need to consider.
#1. Purpose of Your Second Home
Do you want to buy your second home for rental purposes or to enjoy a vacation home or farmhouse? The location will depend on the purpose of the home. If you wish to generate rental income and your second home will be an investment, it’s important to choose a location within the city. A holiday home or a farmhouse can be at a place that is quieter, maybe on the outskirts of the city or in a hill station. Remember that even your vacation home can generate some side income in the form of homestays or you can provide it for short-term rentals. You can also avail loan against property if you need funds in the future.
#2. Expenses Management
Before buying, consider all your current monthly expenses that will be affected while you welcome your second home. Create a sheet to understand and plan the basic expenses like EMIs, maintenance, electricity, and your current expenses. It is a good idea to assign an overall percentage of your monthly income to each of the expenses. While considering these expenses, you may also look for home loan kaise milta hai for your second home.
#3. Consider Down Payment and Loan Period
Down payment and loan tenure play an important role in managing your finances when you decide to buy your second home. A higher down payment and a shorter loan period will help you reduce the total interest paid on the loan. It is better to buy your second home in your late thirties or early forties. Even if your loan period is 15-20 years, you will still be able to clear the debt before during your working life and will not have to worry about repaying the loan while you move towards retirement.
#4. Consider Other Financial Commitments
As you grow older, you will have more short-term responsibilities and other important long-term goals. You may have more expenses, such as paying for your children’s higher education or wedding. Your parents will age and may need your financial support. So, apart from wondering home loan kaise milta hai, you need to decide on the amount, keeping your future responsibilities and long-term goals in mind. Of course, when you consider the EMIs, do take into account that you may begin earning rental income and this can go towards payment the EMIs.
#5. Look for Tax Benefits
When you decide to buy a second home, you enjoy certain tax benefits. Whether your second home is a self-occupied property or rented, you can get a deduction of up to Rs 1.5 lakhs on the principal payments under section 80C of the Income Tax Act. You can also get a deduction on interest payable up to Rs 2 lakhs under section 24.
Buying your second home only needs some careful planning. Considering the above factors to plan your home will reduce stress and worries. When you think of home loan kaise milta hai, choose a reputed Indian bank that offers easy eligibility and only a few basic documents.