You belong to the average earning class of the city and are content with house you bought for yourself and your family. You believe that buying a second home in this market is something that only ultra rich people do. But what if we told you that reality is actually much easier than you think?
It is well known by all that an investment in a residential property is an effective way to build wealth in the long term. The same logic holds true for a second house as well. A second property would not only offer capital appreciation in the long term but would also offer you regular rental returns.
Looking at the development of suburbs in Navi Mumbai, SquareFoot suggests reconsidering your thoughts of buying another house here. Localities like Ulwe, Taloja and Wavanje are gaining magnificence lately. Navi Mumbai is quickly turning into a connecting channel between Mumbai, Pune and southern Maharashtra.
Also, Navi Mumbai has witnessed a considerable growth in the real estate prices annually. This growth is expected to continue as the demographic distribution and urbanization is rapidly increasing in these areas. These two factors are directly proportional to each other, thus making it a hot favourite destination amongst the masses.
Did you know that you can be availed several tax advantaged by merely investing in a second home? You if buy a property against a home loan, the rent you receive for it can be set off. And if the situation arises wherein you receive rent less than EMI, then ‘loss from house property’ can be set off against your regular income.
If you decide to invest in mutual funds, stocks or gold, you need to shell out money from your own pocket. However, second home is the only form of investment for which leverage is available and you can apply for 80% of its worth as loan.
And which is a more stable asset than a house? Since it takes more time for its appreciation to increase, you don’t plan to sell it off so early. Another point to keep in mind is that fluctuating real estate prices is a rare event and there is no mark to market that is available on a daily basis. This makes house a comfortable asset to hold onto.
So, if you are comfortable paying the monthly installment, and are prepared for some maintenance and monitoring, Squarefoot would suggest you to go ahead with this decision. And if you plan to invest in Navi Mumbai, it definitely is a better long term investment option.